How can I stop this Default.

Optmus77

Hi there, I am an new member.

My question is does any know know how I can stop a Cahoot loan defualt.? Outstanding amount is £4200 and I am on a cahoot arrangement plan. I am not able to afford the regular amount required. They wrote to me last year to inform me of there intention is to register a default on my account. And they have sent me a letter very recently with thee same letter. I was kind of hoping they would have done it last year but it appears they haven't? Can they take this long to register a defualt when they informed me they would do it last year?

Secondly, Can I write to chaoot and offer them a 3 year monthly equal installments will they accept it ?

Does have a Default regard my me as a sub prime borrower for a future remortgages. ?

_Andy_

Why did you want them to register a default last year but now you want to avoid it?

Yes a recent default, especially for that amount, will rule out high street mortgage lenders and also mean you will require more deposit/equity.

milliemonster

If you can't afford the minimum monthly payment then of course the lender will register a default as you have defaulted on the original terms and conditions of the agreement when you took out the loan, the fact that Cahoot threatened this last year (and didn't do it) is irrelevant, they may just be threatening again in an attempt to see if you can increase your payments.

If you can't increase your payments to the minimum that is required then you will have to continue as you are and risk Cahoot placing a default notice on your file, there is no way round this unfortunately. You can offer Cahoot whatever you like, if you can afford it, whether they accept your offer or not is up to them, just make sure you can afford whatever monthly payment you offer and stick to it.

The best you can hope for is that they either freeze your interest or stop adding charges, a default is the least of your worries here.

Yes a default will affect you for the 6 years it remains on your file, but you have no alternative if you cannot afford to repay your loan at the rate you agreed to