Cabot settlement question

Philip624

I have received an offer from Cabot out of the blue to settle a credit card debt with a 60% discount. The offer is valid for 30 days and based on the figure as at the end of September. I can pay this reduced amount but not until payday at the end of October. I am paying £106 a month on this debt through Stepchange and I don’t really want to have make the standard mid October payment as well if you see what I mean. Should I reduce the debt to £0 on stepchange to stop the £106 payment going through as I will be settling it just 10 days after at the figure Cabot have offered.

fatbelly

Your creditors will all be open to full & final settlement and some (including Cabot) may be persuaded to accept less than 40%.

How much debt do you  have and how much can you raise as a lump sum?

Have you done cca requests to all your consumer credit act debts?

Philip624

About 7k DMP due to end in September next year but this reduction would bring it to May. I can afford the reduced settlement offered but only after pay day which is within the 30 day limit but what I was querying was as the figure is based on what I owed before this months DMP payment it seems a waste to pay them effectively an additional £106 before that time.

Philip624

I’m wondering if I set the Cabot debt to £0 that will stop the £106 for this month going there and it will be reallocated to the rest of the DMP and then by the time any automated letters from Cabot come through re no payment this month I can just tell them I will be accepting their offer and making payment on 30 October within the timeframe.

Philip624

It worked, was even easier than that, as I contacted Cabot accepted the offer but told them they would not be getting a separate payment from Stepchange this month, meaning the £106 is instead reallocated across my other creditors. So pleased as the Cabot offer has knocked 4 months off my debt free date which is now May 2021, the end is in sight.

sourcrates

Make sure Cabot back this up in writing otherwise they may sell on the remainder of the debt, and you could have someone else chasing you for it, it happens all the time.