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    • MarkMick
    • By MarkMick 10th Apr 18, 7:41 PM
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    MarkMick
    Paying off CC
    • #1
    • 10th Apr 18, 7:41 PM
    Paying off CC 10th Apr 18 at 7:41 PM
    I have a large CC debt which costs me around 480 per month on fractionally above minimum payment.

    I've never missed a payment and to be honest I've been paying it for so long that it hadn't really bothered me that much (yeah I'm aware its reasonable amount of money) that was until recently, I've decided to clear it.

    Now my question is, the amount outstanding is around 13k I have some cash set aside of around 15k.

    I'm fairly sure i know the answer but its worth asking the question.

    Would anyone know if generally the CC companies (BarclayCard in this case) would be open to negotiation on a settlement figure? say offer 10k there and then and keep Credit rating in tact

    As I've never missed a payment is that going to counteract what i have in mind?

    many thanks

    Mark
Page 1
    • jonesMUFCforever
    • By jonesMUFCforever 10th Apr 18, 8:10 PM
    • 25,367 Posts
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    jonesMUFCforever
    • #2
    • 10th Apr 18, 8:10 PM
    • #2
    • 10th Apr 18, 8:10 PM
    No and No.

    Why would they accept less when you yourself have not missed any payments?
    If they did it would be marked down on your credit files.
    What goes around - comes around
    give lots and you will always receive lots
    • msallen
    • By msallen 10th Apr 18, 8:14 PM
    • 926 Posts
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    msallen
    • #3
    • 10th Apr 18, 8:14 PM
    • #3
    • 10th Apr 18, 8:14 PM
    As jones says, not a chance sorry. They would only contemplate this if you were already way in arrears and they had reason to believe they might not see all their money again otherwise. It would also trash your credit history for 6 years.
    • Dobbibill
    • By Dobbibill 10th Apr 18, 8:14 PM
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    Dobbibill
    • #4
    • 10th Apr 18, 8:14 PM
    • #4
    • 10th Apr 18, 8:14 PM
    I agree 'No' - if you are maintaining payments.

    Negotiation is reserved for the very final hurdle.
    It would need to be missed/late - then it would get handed to the debt recoveries team - then it would be passed to a DCA - then you can negotiate. In the meantime your credit history is trashed.

    Unless your balance is on or about to be moved to a 0% promo card, I would consider using those savings to clear the balance and reduce the amount of interest you are/will pay.
    I'm a Board Guide on the Energy, Student Money Saving, UK Armed Forces and
    Local Money Saving - Wales boards. I'm a volunteer to help the boards run smoothly, and I can move and merge posts there.
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.


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    It's about being better than you were yesterday.
    • MarkMick
    • By MarkMick 10th Apr 18, 8:18 PM
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    MarkMick
    • #5
    • 10th Apr 18, 8:18 PM
    • #5
    • 10th Apr 18, 8:18 PM
    I guessed this would be the case, after all i wouldn't accept it myself so why should a bank or other...but you have to ask the question.

    thank you for the replies anyway
    • Ben8282
    • By Ben8282 10th Apr 18, 10:25 PM
    • 2,474 Posts
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    Ben8282
    • #6
    • 10th Apr 18, 10:25 PM
    • #6
    • 10th Apr 18, 10:25 PM
    480pm minimum payment on a 13K balance is very high. Whatever is the APR on this card?
    • AndyPoll
    • By AndyPoll 11th Apr 18, 12:07 AM
    • 15 Posts
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    AndyPoll
    • #7
    • 11th Apr 18, 12:07 AM
    • #7
    • 11th Apr 18, 12:07 AM
    If you're reluctant to spend the savings but don't want to keep paying the interest then could you transfer some or all the balance to a 0% card? If you've not missed a payment on a balance that size you will have a good chance of getting a decent limit on a new card.
    Last edited by AndyPoll; 11-04-2018 at 12:08 AM. Reason: Change typo
    • Sncjw
    • By Sncjw 11th Apr 18, 7:26 AM
    • 1,969 Posts
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    Sncjw
    • #8
    • 11th Apr 18, 7:26 AM
    • #8
    • 11th Apr 18, 7:26 AM
    Have you been spending on the card whilst paying it off as you said you have been paying it off a long time?
    • MarkMick
    • By MarkMick 12th Apr 18, 11:14 PM
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    MarkMick
    • #9
    • 12th Apr 18, 11:14 PM
    • #9
    • 12th Apr 18, 11:14 PM
    Have you been spending on the card whilst paying it off as you said you have been paying it off a long time?
    Originally posted by Sncjw
    used the card occasionally but on the whole just been paying minimum +plus a little.

    something weird did happen yesterday.

    based on this comment :

    "480pm minimum payment on a 13K balance is very high. Whatever is the APR on this card?"

    I decided to call BarclayCard to ask what rate i was currently on and why my repayments are high.

    Well i didn't really get the answer i was looking for,

    however the guy said immediately "there are no offers on your account at the moment so as a result i'll freeze the interest for next 2 months saving you a total of 6xx , call back at end of June and see what offers we have"

    I'm still looking at wiping the debt out as soon as rather than a balance transfer, but i have spoken to a family friend who has dealings with money (some form of financial advisor) and he's made some suggestions.
    • newuser86
    • By newuser86 12th Apr 18, 11:32 PM
    • 276 Posts
    • 75 Thanks
    newuser86
    Pay off the amount asap. You're obviously paying a lot of interest and are losing money every month. The family friend I'm assuming would have said the same
    • Ben8282
    • By Ben8282 13th Apr 18, 3:54 AM
    • 2,474 Posts
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    Ben8282
    You say this is a Barclaycard.
    Barclaycard minimum payment is 1% plus interest.
    1% of 13000 is 130.
    480 - 130 = 350
    350 per-month interest on a balance of 13000 represents a monthly interest rate of about 2.7% which represents an APR in the region of about 32% (APPROXIMATE CALCULATION)
    This is very high for a Barclaycard Platinum but looks about right for a Barclaycard Initial (quoted rate 34.9% APR. But do Barclaycard Initial cards come with 13K+ credit limits?
    Your interest rate is clearly shown on the statement so you didn't need to call to ask. You only had to look at the statement.
    Be careful with this 'freezing' of interest after being told that no promotional offers were available to you.. It may be reported on your credit files as some sort of arrangement to pay.
    I would be curious as to the advice that the family friend gave you. I hope that it doesn't involve applying for 0% cards as there is NO WAY you will get one with anything like the sort of credit limit that you appear to have on this card, if you get one at all, after a history of what can only be almost 100% utilisation and more-or-less minimum payments for 4 years.
    Last edited by Ben8282; 13-04-2018 at 4:06 AM.
    • MarkMick
    • By MarkMick 13th Apr 18, 11:23 AM
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    MarkMick
    But do Barclaycard Initial cards come with 13K+ credit limits?

    I would be curious as to the advice that the family friend gave you. I hope that it doesn't involve applying for 0% cards as there is NO WAY you will get one with anything like the sort of credit limit that you appear to have on this card
    Originally posted by Ben8282
    The initial credit limit was something like 5k, over the years they have increased it to its current limit which is nearly 16k.

    As for advice no not at all he agree's get it paid off.

    The mention of balance transfer was in response to an earlier post and is not something even if given the opportunity that id like to do.
    • Candyapple
    • By Candyapple 13th Apr 18, 11:48 AM
    • 2,969 Posts
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    Candyapple
    You say this is a Barclaycard.
    Barclaycard minimum payment is 1% plus interest.
    Originally posted by Ben8282
    Barclaycard's minimum payments are 2.25% not 1%.

    OP - use your 15k to clear the 13k debt and then you have 2k to put into savings or use it clear any other debts.
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • chattychappy
    • By chattychappy 14th Apr 18, 9:59 AM
    • 6,962 Posts
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    chattychappy
    Be careful with this 'freezing' of interest after being told that no promotional offers were available to you.. It may be reported on your credit files as some sort of arrangement to pay.
    Originally posted by Ben8282
    Yes, particularly if they interpreted the call as some sort of plea for help from a customer in financial distress.

    Personally I'd apply for a 0% BT card and transfer some of the balance. I'd pay off the rest from savings. This allows more of a buffer for unforeseen events than running down savings.
    • molerat
    • By molerat 14th Apr 18, 12:29 PM
    • 19,726 Posts
    • 13,925 Thanks
    molerat
    The mention of balance transfer was in response to an earlier post and is not something even if given the opportunity that id like to do.
    Originally posted by MarkMick
    Why not ? A BT gives you breathing space, it is a useful tool to have in your box and will help keep your savings intact.

    Stop spending on the card. Every penny you spend costs you interest and increases the time to pay down. If you want to spend get another card.
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    • nic_c
    • By nic_c 14th Apr 18, 9:24 PM
    • 1,856 Posts
    • 967 Thanks
    nic_c
    Yes, particularly if they interpreted the call as some sort of plea for help from a customer in financial distress.

    Personally I'd apply for a 0% BT card and transfer some of the balance. I'd pay off the rest from savings. This allows more of a buffer for unforeseen events than running down savings.
    Originally posted by chattychappy
    As per FCA guidelines this will be breathing space due to financial difficulty. So long as something is sorted it shouldn't affect it too much. Especially if still making payments, but agree sort something out
    • Sncjw
    • By Sncjw 15th Apr 18, 4:26 PM
    • 1,969 Posts
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    Sncjw
    Why not get as the 13k of cash you have and pay the debt off.
    • nic_c
    • By nic_c 15th Apr 18, 5:37 PM
    • 1,856 Posts
    • 967 Thanks
    nic_c
    Why not get as the 13k of cash you have and pay the debt off.
    Originally posted by Sncjw
    The OP wasn't about not paying the debt but hoping somehow they will be let off some of the debt by paying now. In reality the CC would prefer the OP to not pay the whole debt, since they have been paying a little above the minimum some. They are the ideal customer for the CC co, continually paying interest and never defaulting.

    People get contacted by debt collectors who buy debt for a fraction of the original and then offer discounts to settle (effectively the settlement figure is more than they paid, so it makes sense to get a quick resolution) and think that all creditors will discount to settle quickly. Not the case, especially with multimillion pound companies.
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