Debt clearance

roo88roo

Hi i currently have around £22000 of debt, managed for me by CCCS, i am in the lucky position that i will be able to clear this in january next year.

I have been offered many times by the creditors a settle ment offer, ie pay half now and we will clear the debt.

The aim of totaly clearing my debt is to improve my credit rating, allowing me to get a morgage (more debt i know but a house comes in usefull sometimes).

I have been informed that if i accept one of these offer from the creditors it clear the finacial matters, but still leave the credit score showing part cleared, not showing debt payed not improving my credit score.

I trying to get some true facts on this before i start clearing the debts

Cheers

Tixy

Hi Roo

It depends on what you offer your creditors (and what they will accept). Essentially you need to offer (in writing) a full & final offer and ask them to update your credit report to reflect that the debt is settled (not partially settled).

Here is a factsheet and template - http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=24_full_and_final_settlement_offers
The only thing I would suggest you change on the template is to add in a date that your offer must be accepted by the creditor (eg 2weeks after whenever you write the letter) - this seems to focus the creditors minds a little better!