Settling debts with creditors for lower amounts, good or bad?

Tinuel

Hi guys,
I am contacting the the companies I owe money to offer a settlement, rougly 10% to 20% off the amount, and close my accounts/file. Most have agreed but some warned that:

a- The debt wil show as unpaid
b- It will be closed and settled but shown on my credit file that it was partially settled
C- Pounds till payday and early pay day both advised that it was best to raise extra funds to fully settle rather than settle at a lower amount. They are also reluctant to potentialy send me a letter confirming the settlement, so I am scared that they will come back in the future with extra charges.

So, my question is, it took me almost 2 years to finally be able to clear the debts (thanks to my company bonus and savings), I would rather propose settlements now as I have a substantial amount to pay all my debts rather than saving for a longer time to pay the full amounts I am owing. Are the payday loans correct in saying that I am making my credit file no favours by settling?
How are settlements truly reflected on your credit file?


Many thanks

fermi

Settling for a lower amount will result in a defauleted account which is bad.

If you have already got a default, then it makes little difference to your file.

Read this thread:

A possible breakthrough with creditor?

DO NOT accept a settlement unless it is clear in writing that your liability for the remaining balance has ended.