Going to pay of Credit Card debt hopefully!

cresswell80

Hi all,

Apologies if something similar has been posted but I've searched for similar items and can't seem to find the answer to my question....

At the start of the year I had £14k of credit card debt:

- £10k on Cap One - agreed with Cap One to pay off £212.63 at 0% interest
- £4k on Egg - gone to debt collection agency - agreed to pay them £100 per month, also at 0% interest.

So now there's £11,339.73 outstanding in total

I've now decided, (if this is feasible), to sell my car (something i was trying to avoid) - i'll get about £6k for it - and i want to offer this £6k as F&FS for the above debt.

My questions are these:

Will Cap One accept a settlement, as I haven't officially defaulted due to me paying the goodwill amount of £212 each month??

Would I need to let the account default/go to debt collectors before I offered the settlement?

Does anyone know which DC's Cap One use and have they any experience with them?

THanks in anticipation.

file_wizzard

Cap one will use a Varity of collectors / “solicitors”, usually all at the same time on a commission basis.

If they have agreed to freeze the interest then they are obviously doing all they can to help you at this moment in time, if however you do decided to “Default” on the payment this will obviously have a serious impact on any future chances of obtaining credit when you may need it ( new mortgage for e.g )

All I will say as far as your F&F Go’s the minimum I have ever known Cap One, or one their agents to be instructed to settle for is 70% of the total outstanding, which is a fair way off the 6k you will potentially have available.

cresswell80

file_wizzard wrote:

if however you do decided to “Default” on the payment this will obviously have a serious impact on any future chances of obtaining credit when you may need it ( new mortgage for e.g ) .

A question has arisen from this actually - obviously I've defaulted on the Egg so already a big impact but will another default count against me further??

file_wizzard wrote:

All I will say as far as your F&F Go’s the minimum I have never known Cap One, or one their agents to be instructed to settle for is 70% of the total outstanding, which is a fair way off the 6k you will potentially have available.

This is a shame as I'll have to reduce my monthly payments soon due to change in circumstances...anyone else had better luck with a F&FS with Cap One?

file_wizzard

In a word yes, but you also need to consider the fact that each default will take 6 years to drop off of your credit file, therefor each time you get a default you are effectively eliminating your chances of any further mainstream credit for a further 6 years from that date.

cresswell80

file_wizzard wrote:

In a word yes, but you also need to consider the fact that each default will take 6 years to drop off of your credit file, therefor each time you get a default you are effectively eliminating your chances of any further mainstream credit for a further 6 years from that date.

TRUE - i don't want to default, just thought i may have to, to offer a F&FS...if cap one could accept one directly then that's ok...