question category:

Credit cards

Hi , My husband & I have recently married & he has kindly offered to pay my credit card debts off and pay him back without the added interest rate. My question is , is it worth asking them to lower the debt amount as it would be a lump sum and if so is there a standard letter or terminology that is appropriate in these situations . I look forward to your reply . Kind regards Michelle Beal

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Re: Credit cards

You can approach each creditor and ask them if they would consider a ‘Full and Final’ offer as a payment towards your outstanding debt. If for example you had a debt of £1000, you could write to the creditor and ask them to accept £500 (50%) as a full and final settlement. If they do not accept this figure you could increase the offer in increments until an offer has been accepted. Please be aware however that the creditor is under no obligation to accept a ‘Full and Final’ and may seek to have the debt repaid in full. The advantage of a full and final settlement is that the debt will be listed on your credit rating as being fully satisfied even though a reduced settlement has been accepted. Be aware however creditors will sometimes accept a ‘Partial Settlement’ as a means of satisfying the outstanding debt. Even though ‘Partial Settlements’ are essentially the same thing as ‘Full and Final’ payments, the debt is recorded as being partially satisfied on your credit rating. This question has been answered by Christians Against Poverty, a leading debt charity offering hope and a solution to anyone in debt.

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