MBNA/AVANT card short settlement

[netz]

Wondering if anyone knows anything about short settlement? Been on paymnet plan with MBNA for just over 2 years - 2 cards, did owe 22k, down to 12k paying at 360 per month. Mortgage company will no longer accept us paying reduced payments on mortgage while paying this amount in unsecured debt - which is understandable enough. Have offered to pay Avantcard a total of €90 per month instead, which is our total disposable income at the end of every month, and this is on REDUCED mortgage payments - to which they said no way, but said if I throw a figure at them they might be in a position to short settle and register default. Card A owes 5500, card B owes 6700. Any idea what figures to offer them? My family would willingly help here if this was the end of it - I dont mind going into Default, hope never to have a loan other then the Credit union ever again. I only paid 90 last month 45 + 55 and the letters have started coming in already.

 

[demoivre]

Assume all interest and penalties on the ccs are stopped and you are dealing with recoveries? Offer €3500 in full and final settlement, they might settle for €4000. New insolvency legislation is on the way if they don't play ball. What are the numbers on your mortgage - amount owing, interest rate etc ?

 

[netz]

Yes all charges were stopped 2 years ago, that's how we managed to pay off 10K. Mortgage - 189K owed, should be paying 819 per month, in MARP, paying 520 (interest plus a little off capital) House worth approx 110K. How should I offer the Should I offer 1500 off card A, then 2000 off card B? They wont deal with the 2 cards combined for some reason.

Our income at the moment is approx 460 per week plus 260 PM child benefit.

Interest rate is Tracker (only found this out last month)

 

[demoivre]

MBNA have accepted 30 to 40% in full and final settlement and there are threads on here confirming that. Offer them 30% on each card ie €1650 on card A and €2000 on card B and see what they say.
I don't see the mortgage company doing a whole lot when you're covering interest and some capital, despite what they might say.

 

[netz]

Got a letter from AVANT this morning to say my payment plan was now cancelled, and that interest and charges were being applied to the account as I had breached my agreement with them. I rang immediately, and was told to disregard this letter as it was computer generated. I am in fact still on pay plan but gone into arrears. Guy on phone said when I reach a certain amount of arrears, I would get a call from collection dept and because of our financial situation, they will accept a short settlement. I said how much, and he said its up to me to make an offer, so I said if I got my hands on €1000 (for one of the cards) would they accept that? He said no, but if I could get that figure a little bit higher that they would probably accept and register a default. But he said to wait till collections team get in touch, and to send in a new SFS so they know our current financial situation, but in the mean time keep paying whatever I could afford.