Credit Card Debt Write off

B

brokest

Guest
i have a problem and half a solution.
I owe 40k on 2 accounts with same credit card company
I have come into 20k, I have seen some companies like best-solution.ie that offer to negotiate a reduced full and final settlement on accounts
I have made all recent payments- but missed some a couple of years ago- I earn €1200 per month and have a mortgage of €1000 a month, and the minimum card payments are c. €800 per month (i was doing a lot of juggling)

Is there anyway the credit card company would accept a settlement in my case? has anyone had success getting their case settled with companies like above, Mabs or personally

Brokest Man in Ireland
 
Maths not really my strongest point, but, pray tell, how can you earn €1200pm & manage to pay €1000 on a mortgage & €800pm on CC payment (lets not even think about food, car/transport, clothes & other essentials). There obviously more to this.

So maybe if you could give a fuller picture on your incomings & outgoings and if there is additional income from somewhere or someone else?
 
help from family mainly, and some credit card juggling as previously supposed
 
If that is how you manage your debt I would advice you to use some of the 20K to do a money management course. The solution you are wishing for is a magic wand. Your income plus mortgage payments and credit card debt does not add up. What do you live on? You could try paying off one card with your lump sum and negotiate through Mabs with the other to get a more manageable montly repayment. If you don't tackle your debt you could lose your home.
 
BRONTE- did you read my question? I asked if anyone had used companies like above (best-solutions.ie), and would there be any chance the credit card co would accept a [reduced] full and final payment to clear my account given my financial situation.
I didn't ask for condascending advice like 'do a money management course'
I find it very hard to conceive that I could lose my home over an unsecured credit card bill, that I am willing to come to an agreement to pay at least 50%
 
Hi brokest

I personally have never used a company like (best-solutions.ie), although they seem to be a UK based company. What about talking to MABS or citizen advice bureau, they may be able to help you.

Regards

Hizzy
 
Hi, Can't see any cc company accepting 50% but def worth a try. However you will have to pay best solutions to get involved. Why not call the cc company yourself. You should they dealing with them directly 1st or maybe you have already ?
 
I used to work for a credit card company and I can tell you now that debt management companies are laughed at by them and the people who use them aren't thought of much better as they're paying a company to do something they could do themselves.

They promised to negotiate this and that and you give them your money each month but the card company won't stop your interest from being added to your account no matter what the debt management company say - you may get a reduction in fees but that's only if you're in a fee spiral which it looks like you're not - you said you had made all your recent payments - and if you get the FSA or regulator involved.

Your best plan would be to clear one card off completely with your 20K and then cut it up and close that account. Any money you have left over from the 20K pay it off the other card.

If you're really bad off consider going down the IVA route (if that's available here) at a push as it will affect your credit rating.

Really as your managing your bills without getting fees added you're pretty stuck as they won't want to know.
 
Honestly - they are in it for what they can get out of it, not for what you can. Your best bet is to try and deal directly with them, come to them with your proposal and negotiate with them (I'd suggest perhaps not telling them the full amount available to you to start with to give you the power of negotiating up). It is not likely enough to clear the whole lot. It is better to try though - and even if you can't achieve that, paying off some of your cc debt will help you considerably.

More fundamentally it would seem to me that you are hard-pressed to afford your mortgage as it stands - even if you were debt free you would be living on €50 pw, including all food, transport, insurance, etc costs. It isn't a whole lot. I am going to guess you don't plan to do that for the long term so how do you think you will approach increasing your available income for living? Have you considered selling your house?
 
Wasting your time negotiating with them. Sell your house, take the hit, this will free up some cash to start paying off the CC debt.
 
I have witnessed car finance companies accepting a lump sum to clear outstanding debt. I think your only hope would be to get a competent independant third party to negotiate on your behalf. There is no point offering 50% as a starting point and should offer considerably less initially like 25% off each card.
 
If you contact the CC company and advise them of your situation worl out a repayment plan with them based on what you can afford no need to declare with them that you have come into money. I would put the 20k or most of it into an account and use it to clear your mortgage for the next year by transferring it from the account off your mortgage account. The CC company should give you a min monthly repayment plan based on your earnings and outgoings. You can then use your monthly salary to pay for bills, food and repaying the CC.
 
I think that I would go a completely different route from that suggested by Lilly2099.

I think the chances of the CC lender making a deal involving a write-off are so small that it is not worth building up any hopes based on that.

You should address your debts based on a number of considerations -- the highest interest rate; the degree of urgency (how far overdue); the likely consequences of falling into arrears or defaulting.

This looks like the sort of case where sitting down with your local MABS would be a good idea.
 
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