credit card companies

[blueboris]

My g/f and i have hit hard times and she has an outstanding balance on her cc of approx�4000 we are unable to make the repayments but maybe able to borrow a few pounds from our families but not the full amount. my quetion is, is there anyway that the cc company would accept a reduced amount as a full and final payment.

Thanks in advance

[Ethel]

I would consider that a last resort.

At this stage your partner needs to make an appointment with the CAB debt advisor - you can do this over the phone.

Before the appointment, she should gather all the paperwork regarding her debts AND her income.

Bank statements, proof of income - everything. And the credit card bills.

Hopefully, the advisor will help her to negotiate a much reduced payment and, most importantly, freeze the interest so the debt isn't growing.

This is a way of tackling the debt head on, without borrowing more money. Good luck!

[wizard]

I agree, deal with the debt head on.

Have you spoke with the credit card supplier and tried to negotiate a deal yourself? They are pretty good nowadays.

[blueboris]

thanks for the advice will try both of the above

[dans1977uk]

Hi, I agree that this is a matter which needs to be dealt with rather than leaving it, but if your money problems are likely to be over within two or three months it may be worth considering simply not paying your card for this time. If you choose to enter into an Individual Voluntary Agreement (IVA) with your credit card company, with or without the help fo the CAB, it will affect your credit history for up to 6 years. However, if you simply do not pay your credit card bills they WILL charge you interest and late payment fees but when you start making payments again (including the total amount of missed payments) your credit history will only be adversly affected for about 12 months.

This is NOT a long term solution but if you've both just been made redundant for example, but expect to find work fairly quickly it could reduce the impact on your financial future quite positively. However, if you can not forsee any light at the end of the tunnel yet then the previous answers given are very helpful and accurate.

I hope I've been of help!