Negotiation when paying off a CC balance in full

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  • MABLE
    MABLE Posts: 4,082 Forumite
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    foxy-stoat wrote: »
    This sort of talk will get you no where !

    Very true but I like it!
  • JimmyTheWig
    JimmyTheWig Posts: 12,199 Forumite
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    Brummie85 wrote: »
    Even if you only get a saving rate of 4%, you are still making money.
    "Only" 4%? That's a bit optimistic, isn't it?
    But the idea is sound, for someone who has self-control and knows what they're doing. It's called Stoozing.
  • Brummie85
    Brummie85 Posts: 170 Forumite
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    JimmyTheWig wrote: »
    "Only" 4%? That's a bit optimistic, isn't it?
    But the idea is sound, for someone who has self-control and knows what they're doing. It's called Stoozing.

    I can get 5% AER from my bank for a savings account, but that is is via there advanced account system - Basically for earning enough to meet a threshold of paying in to trigger some (okay, and some meh) benefits. Their rate to standard account holders is only 2% though.

    They limit the monthly deposits to £250 though. Depending on the amount the op has to repay his cards, only being able to earn 5% on £3k max pay in might not be worth doing overall.
  • beckysheffield
    beckysheffield Posts: 328 Forumite
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    Brummie85 wrote: »
    I can get 5% AER from my bank for a savings account, but that is is via there advanced account system - Basically for earning enough to meet a threshold of paying in to trigger some (okay, and some meh) benefits. Their rate to standard account holders is only 2% though.

    They limit the monthly deposits to £250 though. Depending on the amount the op has to repay his cards, only being able to earn 5% on £3k max pay in might not be worth doing overall.

    I don’t understand the first sentence
  • eddddy
    eddddy Posts: 16,487 Forumite
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    keiththelemon wrote: »
    I am in a position where I am able to pay off a substantial debt with 4 x credit card companies in full. I wondered whether I could "negotiate" a settlement figure without hurting my credit report or classing as defaulting

    A big part of CC companies business model is... they lend people money and charge interest for it.

    You're wanting to give them less business (by borrowing less money from them and so paying less interest) - and you're expecting them to give you a good deal in return.


    (Isn't that like saying to a supermarket, if I buy less stuff from you, will you give me a better deal?)
  • Zero_Sum
    Zero_Sum Posts: 1,567 Forumite
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    OP will you lend me £100 & i'll pay you back £75 then call it squits?
  • chattychappy
    chattychappy Posts: 7,302 Forumite
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    Dunno why people are getting so upset.

    The OP asked a simple question - with a debt outstanding, is there a chance he/she can obtain a discount for paying off in full? Not sure why all the moralising. Everyone wants to save money - in this case the simple question is "no" given the payment history.
  • agrinnall
    agrinnall Posts: 23,344 Forumite
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    chattychappy wrote: »
    Dunno why people are getting so upset.

    The OP asked a simple question - with a debt outstanding, is there a chance he/she can obtain a discount for paying off in full? Not sure why all the moralising. Everyone wants to save money - in this case the simple question is "no" given the payment history.


    The moralising is because if the OP doesn't pay it then the CC company will want to get the money from somewhere, which means raising the interest rates for other people. While that doesn't bother me as I never pay interest it's unfair that the OP would get away with not paying what is owed and the shortfall made up by people who are paying.
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    agrinnall wrote: »
    The moralising is because if the OP doesn't pay it then the CC company will want to get the money from somewhere, which means raising the interest rates for other people. While that doesn't bother me as I never pay interest it's unfair that the OP would get away with not paying what is owed and the shortfall made up by people who are paying.



    That's quite a simplistic assessment, there's no direct correlation between an individual paying a reduced amount of capital back and the interest rate someone else pays, that's a function of a competitive market, expected returns by the provider, credit files and a host of other factors.


    The OP would have to default as has been stated before any offer would be considered, and a reduced payment would come with a mark on credit files which would impair provision for typically up to six years, and may well have an impact on the cost of any credit offered; if the OP is prepared to go to those lengths, is potentially saving a significant amount and doesn't need credit for a number of years then it may be financially worthwhile, it won't be for most but may be for some, simply a way of playing the system.
  • jimbo26
    jimbo26 Posts: 954 Forumite
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    edited 29 June 2018 at 3:55PM
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    The simple answer to the OP's original question is, no you can not negotiate a deal to pay off part of your CC debt and not damage your credit file.
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