Debt with Cabot will never be paid?

pgibsonuk

Hi,

I have recently noticed that an old Halifax personal loan account, that was bought by Cabot has fallen off my credit file. I defaulted after running into difficulties on the £8k loan in March 2006, and the 6 year limit has just passed and this is no longer showing on my credit file either under Halifax or Cabot.

Since the debt was passed to Cabot I have been paying £2.50 a month. And at this current rate I will be 270 years old!! before it's fully paid and obviously no one lives that long. Cabot are constantly trying to get me to increase the payments, but at the present time i'm not able. Within the last 2 weeks they have just offered me a 60% discount to the debt, but likewise i'm in no position to find the money they are asking.

• If I stopped paying this debt to Cabot can they take further action and re-apply a default on my credit file.
• Will Cabot eventually write this debt off.
• Or will they try and make me pay until I die

I'm just looking for some realistic advice, as in my opinion it's currently not in mine or Cabot's to carry on with this debt.

fatbelly

pgibsonuk wrote: »

Hi,

I have recently noticed that an old Halifax personal loan account, that was bought by Cabot has fallen off my credit file. I defaulted after running into difficulties on the £8k loan in March 2006, and the 6 year limit has just passed and this is no longer showing on my credit file either under Halifax or Cabot.

Since the debt was passed to Cabot I have been paying £2.50 a month. And at this current rate I will be 270 years old!! before it's fully paid and obviously no one lives that long. Cabot are constantly trying to get me to increase the payments, but at the present time i'm not able. Within the last 2 weeks they have just offered me a 60% discount to the debt, but likewise i'm in no position to find the money they are asking.

• If I stopped paying this debt to Cabot can they take further action and re-apply a default on my credit file.
• Will Cabot eventually write this debt off.
• Or will they try and make me pay until I die

I'm just looking for some realistic advice, as in my opinion it's currently not in mine or Cabot's to carry on with this debt.

Hi

If you stop paying, Cabot should not apply another default to your file, though some creditors do try this.

They would have 6 years to decide whether they wanted to take court action against you.

Will they write off an 8k debt? No. If they do decide it isn't worth pursuing, they will sell it to someone else to have a go.

Will they harass you for increased payments till you die? Yes.

If you only have £2.50 per month available then you should be looking at a Debt Relief Order. If you don't qualify, maybe because of your assets, and this is your only debt, then the £2.50 a month plan is probably the remaining option unless you come into a lump sum or want to take the 'stop paying and see what happens' option.