# Clearing Credit Card Debt



## Livi (4 Oct 2010)

I have a credit card with MBNA with a balance if 11,800 of which 1,600 is arrears. I have been paying off 180 a month with them but they keep saying they need me to pay off more and are hounding me with calls and letters. Luckily I have managed to get 7000 from my dad to pay off but my question is do you think if I tell them I can raise a certain amount of cash to pay it off that they would accept 7000 to clear the debt in full? Also, is there any advice on how I would say this to them?


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## BazFitz (4 Oct 2010)

Have they frozen the interest and charges?  Sorry to hear about your difficulties.


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## Sunny (4 Oct 2010)

To be honest, you are better off trying to pay off the debt because otherwise it will damage your credit rating. Pay off the 7000 and that will clear arrears and leave you with a balance of about 4000. Paying 180 a month off this is about 5% of the balance so they will be more than happy with this (would be better if you could pay more of course). Having said that, if the 180 a month is struggle, you could ask them to come to sort of arrangement. Personally I would offer the 7000 if they froze the interest and see what reaction you get.


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## marti18 (4 Oct 2010)

Livi said:


> I have a credit card with MBNA with a balance if 11,800 of which 1,600 is arrears. I have been paying off 180 a month with them but they keep saying they need me to pay off more and are hounding me with calls and letters. Luckily I have managed to get 7000 from my dad to pay off but my question is do you think if I tell them I can raise a certain amount of cash to pay it off that they would accept 7000 to clear the debt in full? Also, is there any advice on how I would say this to them?


 

they will not give a reduction if you pay cash PERIOD!  they will ask you for the full amount in which you spent which is your fault because you spent it.  MBNA are very very bad co when you are in arrears so just pay the 7k and keep up the 180pm until its cleared.....also freeze the account or close it totally


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## BazFitz (4 Oct 2010)

marti18 said:


> they will not give a reduction if you pay cash PERIOD! they will ask you for the full amount in which you spent which is your fault because you spent it. MBNA are very very bad co when you are in arrears so just pay the 7k and keep up the 180pm until its cleared.....also freeze the account or close it totally


 
Not true.

They've been known to settle for 60% of the outstanding debt.


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## marti18 (4 Oct 2010)

i owed them 3500 last december and before i payed it in full i rang them asking for a discount if i cleared the balance with cash.....answer was NO WAY.  you spent it so you pay it!


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## MrEBear (4 Oct 2010)

I don't understand this, you have a debt of 11k but only want to pay 7k and have MBNA clear the rest. Why not just pay the 7 then continue to pay €180 a month until it's clear, afterall you did spend the money in the first place. It would be like lending someone 11k and them offering to only pay 7k back, would you agree to this? No? Then why would they? I too have credit card debt with MBNA but I wouldn't feel right not paying it all back. Just ask to freeze the card and the interest, pay the 7k and continue with your monthly payments. 

Bear


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## BazFitz (4 Oct 2010)

If the credit card companies cannot recover a debt, they sell the debt to a third party at a sizeable discount. Accordingly, it often makes commercial sense for them to come to a more beneficial settlement with the customer.


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## Graftgirl (4 Oct 2010)

I was in a similar scenario, I owed €17000 to MBNA, I cut a deal with them, basically I told them my father was giving me money to pay off this debt but he would only give me €12000.
They accepted it, there was obviously a lot of interest that had built over the life of the debt that I owed to them so they took the €12000 which I was delighted with, glad to get them off my back to be honest..


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## Graftgirl (4 Oct 2010)

I should have also added that this was late December of last year..


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## Livi (4 Oct 2010)

Thank you all for replying. I suppose I should have stated that I haven't used this card in 4 years and being out of work for almost a year added a lot of interest and fees to the balance that started as just under 9K. I know I am responsible for spending and maxing out this card but I am just one of thousands of people that have been foolish with credit. My card started at 1500 limit and within 2 yrs I had 6K at my fingertips without ever requesting an increase. This is where the credit card companies get the weak ones, like me to spend it like I own it. Anyway, I am going to call them with an offer like Graftgirl did (thank you graftgirl!) and see what happens. I will let you know what happens...


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## marti18 (4 Oct 2010)

Livi said:


> Thank you all for replying. I suppose I should have stated that I haven't used this card in 4 years and being out of work for almost a year added a lot of interest and fees to the balance that started as just under 9K. I know I am responsible for spending and maxing out this card but I am just one of thousands of people that have been foolish with credit. My card started at 1500 limit and within 2 yrs I had 6K at my fingertips without ever requesting an increase. This is where the credit card companies get the weak ones, like me to spend it like I own it. Anyway, I am going to call them with an offer like Graftgirl did (thank you graftgirl!) and see what happens. I will let you know what happens...


 
Livi,  please let us know how u get on and i hope they do come to some arrangement because mbna are scum when u owe them $$.


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## BazFitz (4 Oct 2010)

marti18 said:


> livi, please let us know how u get on and i hope they do come to some arrangement because mbna are scum when u owe them $$.


 
+1


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## redbhoy (5 Oct 2010)

You could try this. Whats the worst that could happen?


http://www.mindwarpsectorfour.com/creditcard.html


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## ziltwo (5 Oct 2010)

redbhoy said:


> You could try this. Whats the worst that could happen?
> 
> 
> http://www.mindwarpsectorfour.com/creditcard.html



good one!!!!


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## Livi (28 Oct 2010)

Just an update for you all....spoke to MBNA and actually got through to someone very helpful. I had to do an income and expenditure report for them which was dismal! I made them an offer of 7k that they accepted. The balance will go on my credit record for 6 years but it would have taken that at least to clear it so I was happy enough to go with it. Have a loan for the 7k but at least MBNA are off my back and I have a set amount I can afford each month coming off my loan. I am so relieved and have slept well for the first time in months. I hope this gives a few of you hope that think there is no way to negotiate with MBNA...I honestly think if your situation is bad enough they want rid of you. I did get it in writing the amount they would accept and that they will not come back to recover the debt at any stage.


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## agentino (4 Nov 2010)

you did the right thing Livi and you did good business. Credit rating would have been ruined by them anyway so no loss there.
Any financial institution in the future will mark it as a good sign that you were up front about it and faced it rather than put your head in the sand.

Well done


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## MisterMarkie (26 Nov 2010)

What is the address to write to MBNA, I don't want to get into the telephone cycle and wrote to them at the Carrick on Shannon address 3 weeks ago but haven't received a reply.


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