Offering to settle a debt

Status
Not open for further replies.
S

Scoop

Guest
Hi,

I am looking for some advice. I currently have a credit union loan of 25k and a credit card bill of 10k. Both are stretching my day to day living just to service same.

I hope to come into a sum of money shortly and would like to settle both debts in full.

What would be the minimum amount that both creditors would take in settlement of same? Would I be mad to offer the full amount?
 
I honestly believe that when you come into this sum of money that you should pay back what you owe in full. You may not like to hear that but it is the correct thing to do. I would think that this is your instinct from your post. Hope it comes through for you.
 
The situation is I hope to receive 30k approx. What galls me is for years, I have been paying 15-20% interest on the credit card, mostly minimum payment just servicing the debt. I'd say the cc company have done well out of me. The credit union loan has been at 10% interest for the last few years and they too have made profit on my account.
When I hear of the vast sums of money being written off by banks over corporate debt, I just feel so frustrated.
Yes, my gut feeling is to pay in full as I am your typical compliant tax payer who has taken everything this and previous governments have thrown at me on the chin, yet I also feel that feck it, I should try and haggle a write down and maybe feel some sense of satisfaction.
 
Scoop said:
. What galls me is for years, I have been paying 15-20% interest on the credit card, mostly minimum payment just servicing the debt. I'd say the cc company have done well out of me.
Click to expand...


The attitude here is just totally outrageous. It is you who have decided to be very silly and pay the minimum payment for years. How in any way is this the credit card companies fault. If you cannot manage a credit card, and you clearly can not then you shouldn't have one. Ditto the credit union. You borrowed the money freely and no doubt you spent it freely. Do you have anything to show for what you bought?

You need to learn some money management skill, you are lucky you are now in a position to 'go straight' because you have VERY serious issues with credit. If you want further advice on that please do the money management thread.

In relation to your query, yes of course you can negotiate, there is never any harm in trying to do so. But it looks to me like you are one of those the credit card companies love. Constantly in debt and constantly paying minimum amount and never getting anywhere with paying down the original debt. They are more likely to do a deal with someone who a) cannot pay b) have not made minimum payments c) who are not in good employment. When you negotiate, don't tell them you've inherited a lump sum.

And in relation to your idea of the evil credit card company, recommended reading for you is Maxed Out.
 
"The attitude here is just totally outrageous. It is you who have decided to be very silly and pay the minimum payment for years."

Excuse me, I didnt log on for a lecture in money management. I asked for advice. You have no right to question my attitude or state that I have been "silly". You havent a clue about my personal circumstances.

I didnt think I would incur the wrath of a keyboard warrior.
 
Would you prefer if I said you were very clever to pay the credit card company 20% interest for years. If you want to hear that than I'll say it if you want.

I cannot see any possible reason for anyone to pay penal interest rates on credit card debt for years and then to come on here and blame the credit card company.

You can report my post if you want it deleted, there's a button on the right hand side of each post, red triangle button.
 
Hi Scoop, welcome.

With all due respect my opinion is that one of the biggest problems in this country has been the availability of consumer credit. Just like people have to manage when they reach a credit limit (say 50k) they can also learn to manage with a credit limit of 0 in the very same way - through saving and managing expenditure closely.

The advice would be that you took out a contract with each when you borrowed the money and you are asking now whether to renege on that agreement or not. Personal honour should lead you in the right way.
 
burmo said:
Hi Scoop, welcome.

With all due respect my opinion is that one of the biggest problems in this country has been the availability of consumer credit. Just like people have to manage when they reach a credit limit (say 50k) they can also learn to manage with a credit limit of 0 in the very same way - through saving and managing expenditure closely.

The advice would be that you took out a contract with each when you borrowed the money and you are asking now whether to renege on that agreement or not. Personal honour should lead you in the right way.
Click to expand...

I Agree
 
Thank you Burmo for you response, appreciate that.

It is not a case of me wanting to renege on any borrowing. If that was the case I would have stopped making payments many years ago and accepted the consequences.

If I explained the reasoning for the initial borrowing in the first place it would shed a different light on my situation. It certainly wasnt to buy an expensive car or fund a lavish lifestyle.

The fact is I have always paid my bills and taxes in this country first and then see whats left over to live off. In this life though, you don't get any bonus points for doing the right thing.
However, the adage "you cannot get blood from a stone" certainly applies in my situation. However, I am Tired.

Surely, it is in the interests of the Credit Union to agree a settlement figure 4 years early. Are they not willing to engage with someone to clear this debt?

Also, the credit card company recently hiked the interest rates to a select customer base, so who is reneging on who?

As for you Bronte, you appear to have a rigid fidelity in your own opinion, which is often a regretable charachteristic.
 
Scoop said:
As for you Bronte, you appear to have a rigid fidelity in your own opinion, which is often a regretable charachteristic.
Click to expand...

I'm sorry you feel that way Scoop. I apologise if my posts upset you. The funny think is I was actually trying to go easy on you as you were new.
 
Bronte said:
I'm sorry you feel that way Scoop. I apologise if my posts upset you. The funny think is I was actually trying to go easy on you as you were new.
Click to expand...

Scoop - Not that Bronte needs the character reference, but you'll find there's a lot of good knowledge and energy that has helped a lot of people on this forum over a long period. :)

Now, to your statement. The reasons for the loans are irrelevant to me... you earn a certain amount of money in your life. A loan is borrowing money from your future earnings to spend today and the interest rate is the cost for doing so. Simple as that.

In terms of settling the Credit Union loan. Is it a fixed loan?
 
As someone who has ran up a lot of debt and cleared this attitude always amazes me. Its your debt you took on at your own free will i'm presuming. Quit the victim mentality and pay it back. It would serve you will to listen to Bronte and the other frequent posters on here as they mostly offer pretty good advice. If its tea and sympathy your looking for i'm afraid your on the wrong website, you can expect a kick up the backside which is what most of us with debt problems usually need.
 
Scoop said:
Surely, it is in the interests of the Credit Union to agree a settlement figure 4 years early. Are they not willing to engage with someone to clear this debt?
Click to expand...

In the case of the credit union you have been paying your loan, it is their interest that you continue to repay as your interest is paying their staff and the other bills. As there is no penalty in the credit union for early pay off, they are losing an income stream if you pay off the loan now. They would prefer that you continue to pay the loan over the next 4 years.

It would only be in the interest of the credit union to accept a lower settlement if they believed that it was the maximum that they could achieve and the likely alternative was complete default of the loan.
 
Danielle24 said:
As someone who has ran up a lot of debt and cleared this attitude always amazes me. Its your debt you took on at your own free will i'm presuming. Quit the victim mentality and pay it back. It would serve you will to listen to Bronte and the other frequent posters on here as they mostly offer pretty good advice. If its tea and sympathy your looking for i'm afraid your on the wrong website, you can expect a kick up the backside which is what most of us with debt problems usually need.
Click to expand...

Oh dear...
 
cashier said:
ANORAKPHOBIA said:
During the boom years lots and lots of people availed of free credit and many of them basically squandered the lot on cars, holidays and consumer goods. Now the credit has dried up people are left paying back sky high debts with precious little to show for it.

OP you had no problem spending the banks money now that you coming into money of your own you don't want to part with it.

Best advise is for you to pay off your debts, you can afford to unlike so many others and hopefully you will have learned a valuable lesson on irresponsible borrowing for the future.
Click to expand...

What is it about some people on here. How the hell do you know if it was irresponsible borrowing? How do you know what it was spent on? You dont, so please quit the patronising waffle.

Bar one or two who's fair advice I appreciate, I think some people need to understand the difference between objectivity and subjectivity before they start passing comment.

I came on here looking for advice not to be subjected to an incessant lecture from faceless individuals.
Click to expand...
 
Scoop,

one thing on here is that they call it as they see it and won't sugarcoat anything. I appreciate your position and you obviously have your reasons for considering not repaying in full. You have made your point as to why this is your thinking, the other posters have just played devils advocate. best of luck in whatever you decide to do
 
Scoop said:
cashier said:
What is it about some people on here. How the hell do you know if it was irresponsible borrowing? How do you know what it was spent on? You dont, so please quit the patronising waffle.

Bar one or two who's fair advice I appreciate, I think some people need to understand the difference between objectivity and subjectivity before they start passing comment.

I came on here looking for advice not to be subjected to an incessant lecture from faceless individuals.
Click to expand...

Of course its irresponsible, regardless of what it was spent on. Even if it was to feed your starving family as opposed to travelling the world. You clearly didnt have the capacity to repay it at any time. Hence the long term servicing of the interest only.
Click to expand...
 
Scoop said:
cashier said:
What is it about some people on here. How the hell do you know if it was irresponsible borrowing? How do you know what it was spent on? You dont, so please quit the patronising waffle.

Bar one or two who's fair advice I appreciate, I think some people need to understand the difference between objectivity and subjectivity before they start passing comment.

I came on here looking for advice not to be subjected to an incessant lecture from faceless individuals.
Click to expand...


And you need to not be so rude to people that have bothered to take the time to offer advice.

You haven't backed up anything you've said about irresponsible borrowing, so people can only presume you've nothing to show for it. If you have a major asset that you've invested this money in then you could have the option of selling and paying some of this back, so you would not be relying on this money. So it's common sense more than waffle that leads people to give you the advice they have.
Click to expand...
 
Status
Not open for further replies.
Back
Top