Offer to Bank to clear CC Debt

M

mickeyg

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I have been making payments of €150 per month to the Bank of Ireland in respect of old credit card debt of approx €9k. I would like to be done with it as I'm sure the bank would be also.
What would be the most "sensible"/acceptable amount to offer them as a one off full and final payment??

Thanks for advice
 
There is no single answer to your question as decisions like this are based on potential recovery as estimated by the CC company. You are paying 1,800 per year so a proposal to pay say €5,000 in F&FS may get their attention. Make sure the letter identifies that €5k is the maximum figure you can come up with an not a negotiating ploy. Ideally state that a relative is helping you out by giving you a gift only if the offer is accepted.
It may be a white lie but will give you a realistic chance of acceptance. Also all financial institutions tend to be extremely slow at reverting on settlement offers. If you don't receive a reply within a month consider stopping the 150 payments in order to grab their attention!!
 
Get statements from when you started paying e150.
You will see have they continued with (heavy) cc interest.
You can then make a better stab at a fair offer.
I would hope they would go (easy) on interest charged.
Then write and give them a once off offer that is fair to all.
As Brendan says , if need be stall the 150 to get their interest.
At this stage I wouldn,t tell them where funds are coming from + do not get locked into filling out long statement of affairs ie GO FOR CLOSURE.
 
Thanks for replies.
Gerry I have been asked to fill out another of those godforsaken Statement of Affairs which is indeed why I want closure. It appears from my quick analysis that they
are not adding interest.
I recall a post some time back where someone suggested offering circa 25% of the outstanding amount as a "full and final offer" - it may indeed have been a suggestion
from one of your posts Gerry.
Is that 25% "reasonable" do you think in the eyes of the bank??
 
For closure for bank and you 25% is OK.
However if Mr Bank thinks he can squeeze more , he will squeeze.
Set the price and stick with it.
Let us know how you get on.
 
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