Pay off large Sum, but then be Part-Satisfied

sptravis99

Hi all - I have a debt of £5,900 on a credit card (now with Cabot), that has already defaulted, so has already done the damage on my credit report.

I now have £2,750 that am I able to pay off, and I want to go to Cabot and offer this amount as a settlement. Firstly, what are the changes they'll accept this amount do you think?

And secondly, more importantly, if they do, it will go down as part-satisfied on my report - will this effect me any more then it already is with a default? I.e would future lenders or mortgages look at it better that I at least cleared the debt, or would they p[refer for me to continue paying monthly (which is only £100 a month) - what would be better?

I don't want to part clear it and it make me look worse then it does now

Thanks in advance!

Brie

I wouldn't offer them an amount. I would ask them what they would consider for full and final settlement, without making any promises that you will make any change from your £100/month. My guess is that they might offer a 20% discount, not the more than 50% that you have.

sheenas

In my experience with a default your chances with high street lender is just about Zero. The default stays on for six years from the date registered, so paying it off does not mean the default is clear early. While in theory the impact of a default reduces over time and satisfied is better than part- satisfied, it's still heavily impacts your chances. I would be temped to get it cleared while you have the option.

fatbelly

Start low. I suggest 25-30%. It allows room for negotiation. Do it in writing adapting the ND letter

https://nationaldebtline.org/get-information/sample-letters/full-and-final-settlement-offer/

Your default will stay on file for 6 years regardless of what you do. It doesn't make much difference whether it is unsettled, settled or partially settled

ManyWays

Do not ask what they would accept, make an offer. I would probably start with £1500.

Rob5342

Have you made a CCA request? That should be your first action if you haven't already, if they can't produce it then the debt can't be enforced and you can simply ignore it.

If they do produce it then start with a low offer and try again later if you can't reach a decent settlement amount.

sourcrates

Making settlement offers is not as easy as it may seem, they are going to want to see an income/expenditure form from you, to make certain what you pay will be affordable, and they will want to know the source of the funds as well.

So asking them, "what would they accept" may not be the right approach to this.

Also the default will be the dominant marker on your credit report, so part settled/fully settled/completely ignored makes no difference really.

You need to think this through, and do things in the right order, so first step, send a CCA request to see if the debt is enforceable or not, and see what response you get to that.