Credit card - reduced settlement

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fidgit

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Hi All,
I have an FNB credit card I've had for years, pretty much always close to the limit of credit and always paid as much as I can every month, normally a little more than the minimum repayment due (yes I know thats not recommended).
My work and life has got more tricky, and now I may have to move overseas. For the past few months I've been unable to pay the full repayment, only getting to about 3/4 of what I should be paying, and FNB are sending reminders to pay the remainder all the time.

I may be getting a lump sum of cash, which wouldnt be enough to pay it off entirely, but would be sufficient to pay off perhaps 60-70% of the debt. FNB has no doubt earnt more in repayments/interest than the credit ever cost them.

~Does anyone have advice, experience or knowledge of negotiating an early credit card settlement with any of the SA banks? (particularly FNB)

I know it's quite common in other countries but cant seem to find much info here.
Appreciate any pearls of wisdom you can throw my way.
Many thanks.
 
Just pay it up asap (and you will kill interest). Sadly if it isnt settled on the due date, interest get added.
 
There is not such thing on a credit card as a reduced settlement. What the balance is, is what you owe them. They will pile the interest on as time ticks along.

With every payment you make as the bank to reduce your limit so you can't spend that amount either.
 
Hmm, maybe you mean there is no such thing in SA?
Across Europe and the US they have debt/credit card settlement as a common solution.
One of many example links - https://www.forbes.com/advisor/debt-relief/debt-settlement-negotiations-diy/
maxxis said:
There is not such thing on a credit card as a reduced settlement. What the balance is, is what you owe them. They will pile the interest on as time ticks along.

With every payment you make as the bank to reduce your limit so you can't spend that amount either.
Click to expand...
 
Bearing in mind also that I could be leaving the country, and hypothetically they could lose the entire debt as I leave and don't pay (not what I want to do but an option for anyone in this situation)
 
fidgit said:
Bearing in mind also that I could be leaving the country, and hypothetically they could lose the entire debt as I leave and don't pay (not what I want to do but an option for anyone in this situation)
Click to expand...

always an option if you plan on never returning and cutting all ties to sa
 
Debt doesn't follow you outside the borders... but you also have the option to pay the debt off from your overseas account.
Many ways to skin a cat.
 
maxxis said:
And this forum is in South Africa. Which planet are you on?
Click to expand...
You sound like fun.

Claiming "There is not such thing on a credit card as a reduced settlement" sounded quite definitive, when as mentioned it is common elsewhere. So I just wanted to confirm. I'm sorry it triggered you.
 
A little tip for bad debtors, if they can't issue you a summons. The debt will become prescribed/expired. Not the best way of going about things but if you running away and never returning might as well be that shitty person who takes loans and disappears...


www.iol.co.za

Prescription of debt: what you should know

Most debts expire after three years if no payments have been made and the creditor has not demanded payment. But there are conditions attached.
www.iol.co.za www.iol.co.za
 
Your best option is to simply cut your monthly expenses pay off your credit card.

Source: I've spent time working in the Debt Review industry
 
fidgit said:
Bearing in mind also that I could be leaving the country, and hypothetically they could lose the entire debt as I leave and don't pay (not what I want to do but an option for anyone in this situation)
Click to expand...

A guy I knew from the complex I lived in rang up over a million bucks of debt on several credit cards. He wasn't some criminal mastermind. The banks tracked him down to the UK. Not sure if he suffered any legal consequences as a result, but don't think he's been able to put foot in SA since.
 
If its a worthwhile sum (say in excess of R1.5m) and the debt can be proven, then it can be worth their while to appoint solicitors in the UK to collect

There is a hefty fee for this, can easily approach R80k but it happened to the son of a friend who went to live in the UK. Within 9 months of arriving, he received a lawyer's letter and made arrangements to pay
 
zolly said:
Hope you don't have any inheritance or RAs in SA.

www.moneyweb.co.za

I am emigrating, what happens to my unsecured debt?

I have credit cards and personal loans - can I still do a financial emigration?
www.moneyweb.co.za www.moneyweb.co.za
Click to expand...
Nice article summary below

In conclusion, you don’t have to settle your short-term unsecured debt, but that would be unethical and morally incorrect. Should you leave SA with investments that you can only transfer when you emigrate, any unsettled debt/taxes etc, will rear its head at some stage during this process.
Click to expand...
 
Tman543 said:
Nice article summary below
Click to expand...
Thanks this is a really great article. As I said I do wish to pay off the debt if I can afford to.
However I do find it ironic to talk of bank customers being unethical and morally incorrect when banks worldwide are consistently the worst offenders.
 
fidgit said:
Thanks this is a really great article. As I said I do wish to pay off the debt if I can afford to.
However I do find it ironic to talk of bank customers being unethical and morally incorrect when banks worldwide are consistently the worst offenders.
Click to expand...
Blame the bank for your living beyond your means and now having to pay back the money?
 
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