Reduced payment offer

Willing2Learn

Whether you pay the full balance or a partial settlement does not really make that much difference to your credit file. The toxic part of the debt is the default, and that won't be removed from your file until six years from the date of default. A settled or partially settled default is a very big negative to have on your credit file.

GMac14

I have 3 credit builder credirpt cards, Barclaycard credit builder 250 limit recently increase to 500, paid in full each month 50 balance, marbles cc 250 balance zero balance and capital one 200 limit zero balance.

I have increased my balance on marbles to 750, giving me total credit of 1400 plus 600 cash in bank.

The offer from Cabot is for the larger amount of 5,796 pounds, offering 7 days window to settle for 1,739. Do I pay 1400 off on the credit cards and then 339 from savings to clear this huge debt? I’m saving 4,057 by doing this. I can then pay rest of savings, 261 towards the three credit cards and then at end of March I get 600 bonus so can then pay that off the cards as well which brings them down to a manageable level.

I know I should pay off in full ASAP and can do by end of April, but seems like if I can make it work is an opportunity not to be missed.

rintyrad

the debt is obviously not enforceable so i don't know why you'd bother paying it. the moment they start offering these discounts means its a lemon debt

[Deleted User]

rintyrad wrote: »

the debt is obviously not enforceable so i don't know why you'd bother paying it. the moment they start offering these discounts means its a lemon debt

If payment is being made towards the debt then it is still enforceable

rintyrad

Not if it doesn't have a CCA agreement - has this been checked?

[Deleted User]

It depends on what the debt is as to whether there is a CCA for it.

But having no CCA doesn't make it full-stop unenforceable

NeverendingDMP

I dont think they will let you pay it using c cards as this is causing more debt(all be it a saving for you) but im not 100% sure.
Occasionally places will agree settlement figures spread over 2-3 months, it might be worth asking them. Also if they sent you that offer there is nothing to say you cant contact them to say i cant quite pay that but a relative has said they can give me 1200 or 1500 for example instead within 30 days.
You also need to check it will clear the balance and has correct wording in the letter. There is a thread on the debt free board called full and final settlement help thread i think. Posts in there will explain the wording you are looking for better.

GMac14

Settled for 1,739. Was advised against putting on cc but since I have 1200 due in bonus (600 end of March and 600 end of April) plus they agreed to go through with this.

Debt was a good 12 months away from becoming statute barred (had 2.5k written off previously 2 years back) so ran the risk of a ccj if I ignored it once debt had been traced etc so had to start to make contributions. Debt was still mine so feel like had to pay some of it just happy to have been offered a discount, 1,400 on cc but will be paid off within 9 weeks.

Remaining debt is smaller amount with Cabot which is £660 and paying this off at £40 per month on dd and will pay more as and when I can, so, although there will be some interest charges on cc, it looks like I will be debt free this year, beyond my expectations.

Hard lessons learned. My car is ten years old and done 100k miles and want a new one, but no loans for me, will save up and be patient, the fact that the debt is cleared, my dd are down to 175 per month and when last debt cleared that will drop down to around 125 per month.

:j

GMac14

Also confirmed this would close that account down (5,900 owed) and got e mail confirmation and when website updated the day after that amount was closed off and settled, written letter confirming this will take ten to 14 days

[Deleted User]

If you’ve been making payments on the debt then it won’t be 12 months away from being statute barred - the clock would have reset from when the last payment was made.