# Offering to settle a debt



## Scoop (6 Nov 2012)

Hi,

I am looking for some advice. I currently have a credit union loan of 25k and a credit card bill of 10k. Both are stretching my day to day living just to service same.

I hope to come into a sum of money shortly and would like to settle both debts in full. 

What would be the minimum amount that both creditors would take in settlement of same? Would I be mad to offer the full amount?


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## Dermot (6 Nov 2012)

I honestly believe that when you come into this sum of money that you should pay back what you owe in full.  You may not like to hear that but it is the correct thing to do. I would think that this is your instinct from your post. Hope it comes through for you.


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## Scoop (6 Nov 2012)

The situation is I hope to receive 30k approx. What galls me is for years, I have been paying 15-20% interest on the credit card, mostly minimum payment just servicing the debt. I'd say the cc company have done well out of me. The credit union loan has been at 10% interest for the last few years and they too have made profit on my account.
When I hear of the vast sums of money being written off by banks over corporate debt, I just feel so frustrated.
Yes, my gut feeling is to pay in full as I am your typical compliant tax payer who has taken everything this and previous governments have thrown at me on the chin, yet I also feel that feck it, I should try and haggle a write down and maybe feel some sense of satisfaction.


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## Bronte (7 Nov 2012)

Scoop said:


> . What galls me is for years, I have been paying 15-20% interest on the credit card, mostly minimum payment just servicing the debt. I'd say the cc company have done well out of me.


 

The attitude here is just totally outrageous. It is you who have decided to be very silly and pay the minimum payment for years. How in any way is this the credit card companies fault. If you cannot manage a credit card, and you clearly can not then you shouldn't have one. Ditto the credit union. You borrowed the money freely and no doubt you spent it freely. Do you have anything to show for what you bought?

You need to learn some money management skill, you are lucky you are now in a position to 'go straight' because you have VERY serious issues with credit. If you want further advice on that please do the money management thread.

In relation to your query, yes of course you can negotiate, there is never any harm in trying to do so. But it looks to me like you are one of those the credit card companies love. Constantly in debt and constantly paying minimum amount and never getting anywhere with paying down the original debt. They are more likely to do a deal with someone who a) cannot pay b) have not made minimum payments c) who are not in good employment. When you negotiate, don't tell them you've inherited a lump sum.

And in relation to your idea of the evil credit card company, recommended reading for you is Maxed Out.


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## Scoop (7 Nov 2012)

*"The attitude here is just totally outrageous. It is you who have decided to be very silly and pay the minimum payment for years."*

Excuse me, I didnt log on for a lecture in money management. I asked for advice. You have no right to question my attitude or state that I have been "silly". You havent a clue about my personal circumstances.

I didnt think I would incur the wrath of a keyboard warrior.


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## Bronte (7 Nov 2012)

Would you prefer if I said you were very clever to pay the credit card company 20% interest for years. If you want to hear that than I'll say it if you want. 

I cannot see any possible reason for anyone to pay penal interest rates on credit card debt for years and then to come on here and blame the credit card company. 

You can report my post if you want it deleted, there's a button on the right hand side of each post, red triangle button.


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## burmo (7 Nov 2012)

Hi Scoop, welcome.

With all due respect my opinion is that one of the biggest problems in this country has been the availability of consumer credit. Just like people have to manage when they reach a credit limit (say 50k) they can also learn to manage with a credit limit of 0 in the very same way - through saving and managing expenditure closely.

The advice would be that you took out a contract with each when you borrowed the money and you are asking now whether to renege on that agreement or not. Personal honour should lead you in the right way.


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## Billo (7 Nov 2012)

burmo said:


> Hi Scoop, welcome.
> 
> With all due respect my opinion is that one of the biggest problems in this country has been the availability of consumer credit. Just like people have to manage when they reach a credit limit (say 50k) they can also learn to manage with a credit limit of 0 in the very same way - through saving and managing expenditure closely.
> 
> The advice would be that you took out a contract with each when you borrowed the money and you are asking now whether to renege on that agreement or not. Personal honour should lead you in the right way.



I Agree


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## Scoop (7 Nov 2012)

Thank you Burmo for you response, appreciate that.


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## Scoop (7 Nov 2012)

Thank you Burmo for you response, appreciate that.

It is not a case of me wanting to renege on any borrowing. If that was the case I would have stopped making payments many years ago and accepted the consequences.

If I explained the reasoning for the initial borrowing in the first place it would shed a different light on my situation. It certainly wasnt to buy an expensive car or fund a lavish lifestyle.

The fact is I have always paid my bills and taxes in this country first and then see whats left over to live off. In this life though, you don't get any bonus points for doing the right thing.
However, the adage "you cannot get blood from a stone" certainly applies in my situation. However, I am Tired.

Surely, it is in the interests of the Credit Union to agree a settlement figure 4 years early. Are they not willing to engage with someone to clear this debt?

Also, the credit card company recently hiked the interest rates to a select customer base, so who is reneging on who?

As for you Bronte, you appear to have a rigid fidelity in your own opinion, which is often a regretable charachteristic.


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## Bronte (7 Nov 2012)

Scoop said:


> As for you Bronte, you appear to have a rigid fidelity in your own opinion, which is often a regretable charachteristic.


 
I'm sorry you feel that way Scoop. I apologise if my posts upset you.  The funny think is I was actually trying to go easy on you as you were new.


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## ANORAKPHOBIA (7 Nov 2012)

Bronte said:


> You borrowed the money freely and no doubt you spent it freely. Do you have anything to show for what you bought?
> 
> What business is this of yours?


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## burmo (7 Nov 2012)

Bronte said:


> I'm sorry you feel that way Scoop. I apologise if my posts upset you.  The funny think is I was actually trying to go easy on you as you were new.



Scoop - Not that Bronte needs the character reference, but you'll find there's a lot of good knowledge and energy that has helped a lot of people on this forum over a long period. 

Now, to your statement. The reasons for the loans are irrelevant to me... you earn a certain amount of money in your life. A loan is borrowing money from your future earnings to spend today and the interest rate is the cost for doing so. Simple as that.

In terms of settling the Credit Union loan. Is it a fixed loan?


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## Danielle24 (7 Nov 2012)

As someone who has ran up a lot of debt and cleared this attitude always amazes me. Its your debt you took on at your own free will i'm presuming. Quit the victim mentality and pay it back. It would serve you will to listen to Bronte and the other frequent posters on here as they mostly offer pretty good advice. If its tea and sympathy your looking for i'm afraid your on the wrong website, you can expect a kick up the backside which is what most of us with debt problems usually need.


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## ontour (7 Nov 2012)

Scoop said:


> Surely, it is in the interests of the Credit Union to agree a settlement figure 4 years early. Are they not willing to engage with someone to clear this debt?



In the case of the credit union you have been paying your loan, it is their interest that you continue to repay as your interest is paying their staff and the other bills.  As there is no penalty in the credit union for early pay off, they are losing an income stream if you pay off the loan now.  They would prefer that you continue to pay the loan over the next 4 years.

It would only be in the interest of the credit union to accept a lower settlement if they believed that it was the maximum that they could achieve and the likely alternative was complete default of the loan.


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## Scoop (7 Nov 2012)

Danielle24 said:


> As someone who has ran up a lot of debt and cleared this attitude always amazes me. Its your debt you took on at your own free will i'm presuming. Quit the victim mentality and pay it back. It would serve you will to listen to Bronte and the other frequent posters on here as they mostly offer pretty good advice. If its tea and sympathy your looking for i'm afraid your on the wrong website, you can expect a kick up the backside which is what most of us with debt problems usually need.


 
Oh dear...


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## Scoop (7 Nov 2012)

cashier said:


> ANORAKPHOBIA said:
> 
> 
> > During the boom years lots and lots of people availed of free credit and many of them basically squandered the lot on cars, holidays and consumer goods. Now the credit has dried up people are left paying back sky high debts with precious little to show for it.
> ...


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## leroy67 (7 Nov 2012)

Scoop,

one thing on here is that they call it as they see it and won't sugarcoat anything. I appreciate your position and you obviously have your reasons for considering not repaying in full. You have made your point as to why this is your thinking, the other posters have just played devils advocate. best of luck in whatever you decide to do


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## peteb (8 Nov 2012)

Scoop said:


> cashier said:
> 
> 
> > What is it about some people on here. How the hell do you know if it was irresponsible borrowing? How do you know what it was spent on? You dont, so please quit the patronising waffle.
> ...


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## Danielle24 (8 Nov 2012)

Scoop said:


> cashier said:
> 
> 
> > What is it about some people on here. How the hell do you know if it was irresponsible borrowing? How do you know what it was spent on? You dont, so please quit the patronising waffle.
> ...


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## Wishes (8 Nov 2012)

Anyone mention *irresponsible lending* by the institutions?


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## 01NANA (8 Nov 2012)

Deal with the facts...

You borrowed the money
You knew the charges they had - yes you did
You spent the money
YOU have to pay it back

Buy hey....go ahead and try to screw some money from the bank ie...screw me who has to pay for you with all the other DIS/honest people who borrowed and want someone else to pay it back.

If only i could get out of my debts so easily...i would join your thinking and try to get away without paying all i owe....why not...dont blame you when you see the developers and bankers with their big pensions...go for it and screw more from me.

LISTEN WELL AND GET THIS STRAIGHT

All those people who dont feel like paying back their debts or want to make a DEAL on money they have spent....the banks they are screwing is the TAXPAYER...

GET IT THE TAXPAYER  is what will be covering the money you decide not to pay back....me....me...

IF YOU HAVE THE MONEY PAY IT BACK


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## burmo (8 Nov 2012)

Wishes said:


> Anyone mention *irresponsible lending* by the institutions?



This makes me think McDonalds and shops selling sugar and salt being irresponsible towards their customers health.


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## elcato (8 Nov 2012)

Thread has served its purpose. Left here as a good example of 'tell me what i want to hear' brigade.


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