Author Topic: HSBC Credit card  (Read 689 times)

rm3102

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HSBC Credit card
« on: Sep 26, 2011, 01:06:45 PM »
Hi,have a HSBC credit card that I am now 5 months behind on due to losing my job and other financial issues.Have explained to bank but they don't really want to help,they have today sent me a final letter offering me a 35% discount of the final balance if I wish to settle.Obviously with out begging and borrowing off family this is not really an option unless I can get the figure further down.Does 35% off seem fair or could I get more off by going through a Debt company.Many thanks

James Falla

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Re: HSBC Credit card
« Reply #1 on: Sep 29, 2011, 11:22:23 AM »
Hi there re3102. It seems to me that you could do better than a 35% discount. Generally speaking if you have not been in a position to pay your creditors for a while and the likelihood that they will get their money back is poor, then I would offer them 40% of the total debt as a starting point. I would settle at 50% but no higher.
 
Your success will depend largely on your other circumstances. So for example are you a homeowner? If not this will give you more leverage as your creditors will have no hope of securing their debt against your property with a charging order and you will be able to argue that if if a settlement cannot be reached, you will be prepared to go bankrupt leaving them with nothing.
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