Clearing a Credit Card Balance

spcw · 30-05-2013 8:32pm #1

Does anyone know if avant the new owners of mbna are interested in doing deals to clear credit card balances

ytpe2r5bxkn0c1 · 30-05-2013 9:03pm

Contact them and ask. It's been usually true quickest and most efficient way to find out.

wmpdd3 · 30-05-2013 9:13pm

Yes, but only if you have been in arrears for a while or have been on a payment plan. They asked me if I had a lump some equal to 1/5 of what I owed for a settlement, but I dont have it so no deal was done.

spcw · 31-05-2013 10:28am

Adalynn Angry Rectangle wrote: »

Contact them and ask. It's been usually true quickest and most efficient way to find out.

your are correct I was asking if there is a correct approach to the question to be asked.

plainlazy · 31-05-2013 3:28pm

Im having some trouble making payments on my avantcard due to being unemployed. They suggested a repayment plan that i cant afford or make them a lump sum offer but didnt suggest any particular amount. I presumed they would want at least 60% to 70% of outstanding balance but if i thought theyd accept 1/5 id make a big effort to raise that. Would they seriously consider that to clear the balance??

looperman1000 · 31-05-2013 3:53pm

Jesus! im in same boat about the debt. I am in employment at the moment. If they were to offer a deal about accepting a 1/5th of the balance, i'd make a huge huge effort also. How would one go about getting them to offer a 1/5th off? I was speaking to one of their agents and they were talking about filling out an income and expenditure form and calling out over the phone or sending it into them. They then decide about freezing your access to using credit card, and bring the interest rate right down to 3%
Says it may harm your credit rating in the future if you go down this route though :S

plainlazy · 31-05-2013 4:05pm

I sent them same form a month ago, rang them for update and was told form was either lost or backed up in their large que of applications. I gave them details over the phone and they basically declared what i can afford to repay them by reducing my outgoings. When i told them i wasnt going to accept them micro managing my financial affairs they basically told me the 2 options, take it or leave it. They are still charging me full interest and fees so the debt will only spiral. This will prob end up with a debt collector eventually which wont be good. A settlement of some sort would be best option but financial constraints making this very difficult. Oh, and i found them quite unpleasant to deal with over the phone.

looperman1000 · 31-05-2013 4:21pm

The agent i was speaking to on the phone in fairness was ok, i was having problems remembering my pin number for the 2nd screen and she was basically telling me to go through the password forgot link, i told her then that i didnt have the credit card, it was cut up! She then couldnt really help me, which was great!!! Offered to send out a new one, which i didnt want. So i eventually remember the memorable word and got in.
She told me that there was no need to send the form in, just fill it in and then call it out over the phone.
I dont like the sound of them saying reduce your outgoings! It's basic and plain and simple, the reason you are contacting them is because you/we are under immense pressure and cannot reduce outgoings anymore. By them telling us to reduce our outgoings really doesn't seem helpful at all.
The 1/5th deal who has got it offered to them? How? Can anyone avail? :S

wmpdd3 · 31-05-2013 10:16pm

they have guidelines.

if you looked at my financial statement. you'd settle!

spcw · 13-06-2013 8:33pm

Follow up

they dont do settlements for customers with no arrears and a perfect payment record ! :eek:

BuffyBot · 13-06-2013 11:44pm

Why on earth would they?

wmpdd3 · 14-06-2013 12:17am

See my post above!

Mezcita · 14-06-2013 12:44am

wmpdd3 wrote: »

See my post above!

Nope. You're their perfect customer.

Credit card companies make their profits from people who don't pay off their balance every month. Even if you're financial situation is dire they are under no obligation to cut a deal with a customer. As you've signed up to their terms and rates when you got the card in the first place. If you simply don't pay it they can come after you legally.

What they might do is come up with a payment plan where you agree to pay a set amount off each month. Once again this suits them as while you will eventually pay off the sum owed, it will only be after paying back huge amounts in interest.

Put simply, don't go anywhere near a credit card unless you can pay off your debts each month.

wmpdd3 · 14-06-2013 11:30am

I dont pay interest or charges.

Put simply, don't go anywhere near a credit card unless you can pay off your debts each month.

Totally agree. All cards are cut up and I never intend on having one again, prepaid all the way.

picturehangup · 14-06-2013 12:13pm

@ spcw

I enquired about a settlement, and they wouldn't entertain it at all! Not in arrears. Just paying up by DD monthly.
Was informed it would affect my credit rating, however, it might not all go their way, as I suspect I have been mis-sold PPI by their predecessors MBNA, and it is now highly possible that they owe me more than I owe them!! Time will soon tell!
Question is, if anyone else has been offered a settlement, have they been informed it will affect their credit rating?

picturehangup

kippy · 14-06-2013 12:20pm

picturehangup wrote: »

@ spcw

I enquired about a settlement, and they wouldn't entertain it at all! Not in arrears. Just paying up by DD monthly.
Was informed it would affect my credit rating, however, it might not all go their way, as I suspect I have been mis-sold PPI by their predecessors MBNA, and it is now highly possible that they owe me more than I owe them!! Time will soon tell!
Question is, if anyone else has been offered a settlement, have they been informed it will affect their credit rating?

picturehangup

I don't see why a "settlement" for less than the value of the outstanding amount WOULDNT affect one's credit rating. It would have to surely as you have basicilly defaulted, granted mutually, on a portion of your debt. I would assume this is why we have credit ratings.

spcw · 14-06-2013 7:32pm

My point is that they will write off balances etc for crap customers but I have a perfect payment for 4 years but making no real headway into the capital cannot event discuss a settlement. If I told them I am broke and about the send out my last 5k to my creditors they would settle ! its extorsion at 18% in any case

Mezcita · 15-06-2013 1:53am

spcw wrote: »

My point is that they will write off balances etc for crap customers but I have a perfect payment for 4 years but making no real headway into the capital cannot event discuss a settlement. If I told them I am broke and about the send out my last 5k to my creditors they would settle ! its extorsion at 18% in any case

There is no way they would settle as you have been making regular payments to them. 18% interest is savage but it's something you signed up to when you took out the card.

You're best bet is to try and switch the debt to a card provider who will provide 0% interest for a set period.

See here:

http://www.moneyguideireland.com/credit-card-offers

Basically Tesco or PTSB offer 0% on balance transfers.

Two caveats here though. First they will run credit checks on your payment history to decide whether they will offer you a card.

Secondly (assuming you get the card) you have to take advantage of the interest free period to start paying off the capital sum. The danger here is that you switch the debt but carry on spending. Basically just delaying the inevitable when the 0% period expires.

Just before the end of the interest free period there is nothing stopping you from switching cards again in order to avail of 0% interest from another company.

Clearing a Credit Card Balance

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