Reduced payment offer

NeverendingDMP

Sounds like a good result for you. Debt free date now much sooner. Yayy

GMac14

It was around 12 months away from being statute barred when they bought the date and made contact with me, I decided it was too risky trying to dodge it for 12 months when they could just issue a ccs so went down he route of making payments, I realise once it’s been acknowledged in writing/payments been made the clock resets for statute barred

GMac14

Have now received e mail confirmation and letter confirming that debt is settled leaving me with one last remaining debt, also with Cabot, for 660 pounds which I am paying off at 40 per month. Of the 3 credit cards used to fund the offer of 1700, 1400 was split over 3 cards. 200 on capital one has been cleared in full, reduced Barclaycard from 500 to 425, paid 35 off the balance of 750 on marbles, credit limit 750. Bonus paid at the end of March should be enough to clear Marbles in full and 100 off barclaycard bringing cc debt down to a little over 300 on one card and will be fine to pay that in full end of April.

Should be able to pay off the last 660 to Cabot over next few months as well.

Cannot express how much of a weight this has lifted from my shoulders. I would never normally condone borrowing from one to pay off another but offer was too good plus I knew I had bonus due for March and April.

Advice to others, don’t spend years burying head in sand, sooner you face up to the issue the sooner you can deal with it.

maxmycardagain

fwor wrote: »

Are you saying that they have discounted £7,700 worth of debt down to £1,700 if you settle now?

That doesn't seem likely to me but, if so, I would not be waiting in case they come up with a better offer!

30 years ago Birmingham Midshires took £3k to wipe off a £25K balance...

redux

I think you've done pretty well there.

It seems that quite often firms will decline to take credit cards for regular payments or settlement. Presumably they operate with rules supposed to restrict people replacing an old debt with a new one, and the new one having interest again. So well done for persuading them of your confidence.

Despite the usual advice about paying off regular card spending in full wherever possible, maybe once in a while it's worth borrowing for a couple of months to take an opportunity, and if you couldn't establish whether they could make a similarly good offer in a few months time it was worth grabbing this one.

[Deleted User]

GMac14 wrote: »

So no real penalty for settling for a reduced figure makes it a no brainier I guess.

The offer that they have made so far is not acheiveable as I’m around £1100 short, but around £600 bonus due end of March and same amount end of April plus tax refund due soon. Do I wait for another offer or do I contact them directly and propose a different amount and see if they accept?

Looks like if I can settle early put all the effort in clearing the credit card debt to get totally debt free ready for mortgage application. (10k also due this year from share of equity on house with an ex, long ongoing process).

ABSOLUTELY begin negotiating with settlements, I have recently got out of around 8K debt myself, After negotiating with their "F&F" offers, I reduced that debt to around 5K, so it is absolutely beneficial, The worst they can say is NO.

I found offering around 40% of the full debt in F&F to be completely settled and showing as no outstanding balance owed, Make sure these are the terms, because some companies will be crafty, and chase you a few years down the line for the extra.

As an example, £1000, they may offer you £720 as a settlement, 20-30% is usually the going rate at what they offer as a deduction, You counter offer with £400..., they will probably settle for £550-£600, which is a huge difference already.