# Implications of short settling credit card debt



## leroy67 (25 Nov 2012)

Hi.

Was onto MBNA asking for a reduction in interest rate as I am trying to clear down substantial balance over the next 12 to 18 months. Spoke with supervisor there and she categorically cannot give a reduction in interest rate. She advised I make an offer to short settle and that although it would show on ICB the amount that was short settled for i.e. 30% 60% 85% wouldn't be disclosed. According to her should I look for further credit at a later stage that this would not have such an adverse impact on credit rating as would total default. My ICB is important to me although I am showing as having been two payments down with them (currently up to date), not that I wish to borrow further monies but as a matter of principle. What impact would short settling have on me in the future?


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## terrontress (26 Nov 2012)

If your ICB is important, I presume you wish to borrow. Why would you wish to borrow more money if you can't pay off what you owe?

Come to a settlement and worry about the ICB another time. All it will do is show an accurate reflection of your financial standing anyway.


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## Time (26 Nov 2012)

The fact you short settled will remain visible for 6 years.


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## WizardDr (26 Nov 2012)

First question:

Whats the amount?


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## leroy67 (26 Nov 2012)

WizardDr: 15k

Terrontress: don't wish to borrow at present, as I said in OP it's a matter of principle.I have caught up with payments and intend to keep up to date and my goal is to pay 1k per month over next 15 months or so as I have finished a couple of other commitments and am now snowballing payments.I was asking MBNA for a 1% to 2% interest reduction only. They will not give an inch but mentioned short settling, Laughable really, here I am wishing to pay back full amount with a more reasonable interest rate applied and they're telling me sure make us an offer!!

Time: Thanks, thought as much


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## leroy67 (26 Nov 2012)

Fr Ted,

Thanks got it last month, all fine bar showing 2 down with MBNA but that will be back up to date from December


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## mark1 (26 Nov 2012)

Been doing the same on 2 cards 12k worth over the past 3.5 yrs,initially spoke with them about reduction in interest but gave up as I was getting the same story. If its any help I use mybills.ie and pay into both ac's on a weekly basis less painful than a big lump once a month!! Down to 850.00 now so almost there.


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## leroy67 (26 Nov 2012)

Cheers Mark,

well done, must be a relief


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## mark1 (26 Nov 2012)

Thanks, it certainly is, I never had any issue with paying back the capital it's the interest that hurts, only consolation is that goes down monthly as well, a long road ahead of you but keep chipping away and you'll get there, one thing about the paying weekly bit is you will never have a month registered as missed if things get tight at any stage.


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## leroy67 (27 Nov 2012)

Thanks Mark,

have set myself up on mybills.ie


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## terrontress (27 Nov 2012)

Leroy, if your ICB is important to you, I presume you have nothing negative on there. Could you take out a personal loan at a rate favourable to a credit card lending rate, use that to pay off the credit card and then pay down the loan?


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## leroy67 (27 Nov 2012)

Hi terrontress,

as I said previously ICB was showing 2 down with MBNA. ICB won't be amended until beginning of December according to them. don't think anyone will be rushing to give me a few euro.


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## so-crates (2 Dec 2012)

Leroy67, are you assuming no-one will lend to you a lump sum at a more reasonable rate or have you already tried? Your response to terrontress seems to indicate you are making an assumption. Always better to try I think.


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## leroy67 (3 Dec 2012)

Thanks so-crates, no haven't tried, trying to bite the bullet and get it gone over the next eighteen months


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