MBNA Debt: deal to pay them off?

MBNAMAKESMESAD

I have like so many found myself in a financial mess which im trying to work my way out of I fell behind with with my credit card payments late last year. I owed MBNA a very decent sum Nearly 12k. I have contacted MBNA and in fairness to this point they been okay. Im 3 payments behind. I spoke with them about my options and one which appealed to me the most was trying to broker a deal with them to write off my debt by paying a lump sum.
Im hoping someone out there has successful done this and has an idea how much I would need to offer them to close my account and settle my debt and how long does the process go on for? I plan to go to my credit union for help with the Lump sum...

unclebill98

CC companies have different %'s they will accept.

Most seem to be in around 80%. This will include a strike on your ICB as a "Settled Debt".

MBNAMAKESMESAD

Thanks I appreciate that any idea how long it takes and is it true that you have to make them the offer and if they refuse it you cant go and make a new offer?

Menas

Defaulting on credit card will make it hard for you ever to borrow again in ireland, that black mark will stay. So do think carefully before going thru with this option.
Once you make an offer you should hear back from them within 10 days, but there may well be more to it than just making an offer. They may want to meet with you and have you walk them thru your finances, income and outgoings etc etc...

howamidifferent

In the askaboutmoney forums, several people have commented that they had MBNA settle for 30% to 40% of the debt. So aim low, nothing to lose.

Wicklowandy

If you've already missed 3 payments, you've already affected your ICB.

As the above poster says, and if you really are in financial difficulty (they will require a full breakdown of income and expenditure) and theres no reasonable prospect of your situation improving within 12 months, aim very low.

Information will be retained by the ICB from 5 years from the final settlement of the debt

Wicklowandy

If you've already missed 3 payments, you've already affected your ICB.

As the above poster says, and if you really are in financial difficulty (they will require a full breakdown of income and expenditure) and theres no reasonable prospect of your situation improving within 12 months, aim very low.

Information will be retained by the ICB from 5 years from the final settlement of the debt

Oryx

I do know of someone who just settled with MBNA. It was signed off as a 'partial settlement' and he was advised it would affect his credit rating. He had to show that his circumstances had changed for the worse, and illustrate why he could not pay (income and expenditure). They settled for less than half of the original debt.

MBNAMAKESMESAD

Thanks very much for your thoughts on this its very much appreciated.
MBNA are sending me the income and expenditure form Im going to fill this in and then I have to ring them straight away to talk it through with them.
Im not so concerned about this hitting my credit rating because. Im not looking for a mortgage in the future or to buy a brand new car. Im just looking to be able to live with out the worry of large debt anymore.
I will update this thread as I go and hope it will be of help to those in a similair situation as me and again thanks for any info and please keep it coming if you feel the advice is useful.

Anyone

MBNAMAKESMESAD wrote: »

Thanks very much for your thoughts on this its very much appreciated.
MBNA are sending me the income and expenditure form Im going to fill this in and then I have to ring them straight away to talk it through with them.
Im not so concerned about this hitting my credit rating because. Im not looking for a mortgage in the future or to buy a brand new car. Im just looking to be able to live with out the worry of large debt anymore.
I will update this thread as I go and hope it will be of help to those in a similair situation as me and again thanks for any info and please keep it coming if you feel the advice is useful.

But you said you are going to get the Credit Union to lend you the money to pay MBNA off. What makes you think the Credit Union will lend to you if you have such a poor credit rating?

MBNAMAKESMESAD

I have been in touch with my credit Union and they are willing to help with this I have been totaly upfront about what Im doing and not let the arrears situation go on for to long. I have no idea about my credit rating tbh and I know the last three months havent helped. But the end of the day based on my circumstances I think providing I act sensibly now and not hide the mail down the back of the sofa for another 3 or 6 months surely its in the best interest of the lender to close this situation while Im in some sort of position to deal with it. But yes you are right without another loan albiet on better terms and conditions I would be really screwed.

wmpdd3

The people I have heard of that have settled, did so after an instalment order had failed of another hardship hit them. But, yes I have heard they settled for figures of around 50%

juan.kerr

OP, MBNA have recently sold their Irish operations, the new owners may have a different policy.