Credit card - reduced settlement

[RedViking]

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.

I assume you never thought of adding insurance to your life of debt?

Debt protection

Choose FNB Mortgage Debt Protection Plan and make sure you and your family are not left with the financial burden should something happen to you.

www.fnb.co.za

 

[RedViking]

OP

Asking a question make you upset?

 

[Y'all Qaeda]

To answer your question, ask yourself this: do you think that you are the first person to think of this workaround and would banks allow this sort of behavior?

Or is that what they want us to think.

 

[supersunbird]

Asking a question make you upset?

The rest of OPs posts indicates he is upset.

 

[RedViking]

The rest of OPs posts indicates he is upset.

Sound more frustrated.

He has a valid point though, why do banks here not reduce or write of interest if you want to settle outstanding debt? It seems to be quite common in other countries.

Or do we have that option as well?

 

[JibbersCrabst]

Sound more frustrated.

He has a valid point though, why do banks here not reduce or write of interest if you want to settle outstanding debt? It seems to be quite common in other countries.

Or do we have that option as well?

Most local banks do offer reduced settlements on CC's after they have been handed over for collection. So you would have to wait for the account to go legal. By that stage, it would already have impacted your credit record.

 

[RedViking]

Most local banks do offer reduced settlements on CC's after they have been handed over for collection. So you would have to wait for the account to go legal. By that stage, it would already have impacted your credit record.

Yeah that is too late. The point of it would be to make things easier for everyone and not more difficult.

I guess here we still play hard to get, probably due to how easily they lend money to people who cant afford it.

 

[Messugga]

Most local banks do offer reduced settlements on CC's after they have been handed over for collection. So you would have to wait for the account to go legal. By that stage, it would already have impacted your credit record.

Overseas the reduced settlement options also kill your credit record, as they very well should since the person is obviously not capable of dealing with the responsibility of credit.