credit card debt proposal to pay c50% in full and final settlement

[nantotwo]

Can anyone help please? In receipt of IB but have some small savings, which I want to offer to credit card company in full and final settlement of my debt (means about 50% will be paid off) as soon cant afford the monthly repayments against my outgoings. Are they likely to accept this? (a friend of a friend has just had £3k wiped off her debt doing this I have been told).

Had card since 1970's and always paid at least minimum each month so not in default but need to get myself clear for sake of my health. Can anyone advise me please? Can I just send them a letter (as I have been told this friend of a friend did) with my proposal or do they want to know everything........I dont really want to draw up income/expenditure details etc just tell them how it is - that sooner or later I will not be in a position to make the monthly repayments, cant work, ill health. Is there a letter on the site anyone has used (have been looking but couldnt find anything). Thanks.

[blue4ever]

Hi NANTOTWO Welcome to CAG You have come to the right place there are lots of people in this site that will point you in the right direction.

Try this link http://www.consumeractiongroup.co.uk/forum/letter-templates/146154-creditors-dcas-letter-templates.html

GoodLuck B4E

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[TheChancellor]

Have a look at the above letters & use letter N for a copy of your CCA agreement, send £1 P/O and dont sign the request (as they may not have your signature).Post Recorded Delivery.

 

May not have your agreement either lol if it's that old but I wouldn't have thought they would accept a F&F while you are paying regularly every month.

 

Send for your CCA & post their reply back on here.

 

p.s. if you have a payment due only pay the minimum as with luck it could be the last one you need to make prior to negotiating.

 

Obv.check that the RD has been signed for & start counting the 12+2 days they have to supply your agreement.

Edited October 11, 2008 by TheChancellor
ps added

[nantotwo]

Thanks for replying blue4ever and The Chancellor. I too wondered if they would accept the F&F if I wasnt in default. Its only because I have a direct debit now for them to take the minimum monthly repayment that they are getting the payments on time as this is what they suggested a couple of years back when I was always at least a week late with my payments and I was worried about the £20's late payment fees they were taking (did go down to £12 at some time). So now I make sure the money is in my account for the DD as my O/H doesnt know about this debt and if I got phone calls from them it would cause loads of bother for me with my O/H. My half pay from work now come to an end so money very very tight without even taking this payment into consideration, basically I dont have it now to pay them. Most of my payments are covering the interest so debt hardly moving, when I think of the interest they have had off me over the years I could cry. Will have a look at the letter templates and ask for the CCA. Does this mean that if they cant find this the debt is not enforceable and I dont have to pay them? As I said, had the card since late 70's and have had a few increases in the limit along the way - never applied for by myself, just something they have done and cant remember if this was just increased or something I had to sign for - but think its just something they have done when I got near my limit to give me extra spending .......and to get me further into debt. Worried then they will register the debt after harassing me if I say debt isnt enforceable, as I say cant do this in case my O/H finds out. Dont want a bad debt registered (missed payments are bad enough on my credit report!)

[TheChancellor]

CCA letter is the first step.

 

If they don't come up with an enforceable agreement then you are in a much stronger position to negotiate a F&F settlement.

[kay2u]

Hi

I owed over £8000 on 3 credit cards with MBNA however in the end i paid them about £2000 in total on the 3 accounts as partial settelments which they accepted and since have closed the accounts.

[TheChancellor]

Hi

I owed over £8000 on 3 credit cards with MBNA however in the end i paid them about £2000 in total on the 3 accounts as partial settelments which they accepted and since have closed the accounts.

 

Did you nail them down on a F&F otherwise they sometimes pass the remaining balance out to DCA's at a later date.

[freakyleaky]

Thread moved to General Debt Issues forum.

[Duffers Mum]

I asked all my creditors to accept reduced payments last year as I was having a few problems, some accepted,, some never, I went back to all of them this year with F&F offers and none accepted, with the exception of Barclaycard and that was after months of wrangling.

 

I also doubt they will just take a F&F offer if you have been making regular minimum payments.

 

Good luck