Debt questions around DMP

Discounted2024

Hi,

Giving an update since it's been a year.
I also have a couple of questions.

All credit cards have now defaulted.
Payment plans are in place affordable to me.
I have managed to save a healthy contingency pot and continue to top up.
Anxiety and tension has decreased, slowly but surely seeing light at the end of the tunnel.


1) My HSBC overdraft hasn't defaulted.

It hit the overdraft limit and interest stopped, It's been like this for around 8 months, thoughts on this one?

2) I'm now getting emails, post and calls from Cabot.

They are saying.

'you need to get in touch to give an update on your situation'
Our payment plans are temporary arrangements to help you repay at a pace you can afford. We need review these at least once a year to make sure they’re still suitable.

It’s also a chance to see if there are other options to help you be free of this debt sooner.

If you don’t get in touch to complete your review, we’ll try to contact you again by phone, letter, email, or text.

Do I just ignore or do I have to action?

3)I've received letters from Wescot saying 'Reduced Settlement Offer available'

Our agents will be happy to discuss the actual reduced offer available on this account, the period this can be repaid over and what a settlement will mean for you and your Tesco account.

Please note if you choose to repay your account by a settlement this will be recorded on your credit file but you will not need to pay the remaining balance. This information will remain on your credit file for 6 years from the date of default.

I assume this is worth pursuing, if so what advise would you give to follow up on this?

Thanks.

fatbelly

All defaulted debts are potentially open to settlement deals. When you have a lump sum saved, start making offers.

The HSBC one is a bit odd. Are they asking for payment or is it all just frozen?