UK Credit Card Debt - Discounts to close accounts?

[BettyDosh]

I lived in the Uk for 20 years and returned to Ireland a few years ago. Since then I have built up a huge amount of debt on my UK credit cards. I now have a legacy which will allow me to reduce these considerably - certainly to a manageable level. Is there any point in asking the UK credit card companies for a reduced balance which would allow me to settle the accounts and close them? I may at some time in the future return to UK so it's important that I don't obtain a bad credit rating by even asking the question. To date I've maintained the accounts satisfactorily but it has been a struggle and they have crept up and up. I also have some debt in Ireland so the less of the legacy I use to settle the UK accounts the more I will have to settle the Irish debts and return to normal. The borrowings won't increase again as I now have a good income and have finished building a house that turned into a money pit. Any advice would be appreciated. Thanks

 

[so-crates]

IMO there is always a point in asking but I can't answer you as to whether they will be willing to give you the answer you would like. Maybe ask but plan how to approach your debt if they say no, that way if they say yes, you will be in a better overall position. I would guess the worst they could do would be to say no - what other penalty could they slap on? You also say "UK credit cards". I would suggest that keeping the cards is not the greatest policy, cut them up. If you are unwilling to cut up all of your credit cards then at least pare them down to one. If you haven't already done so, contact MABS.

 

[bond-007]

They generally only accept a settlement (pence in the pound) when a judgement has been obtained and not before.