Reduced Settlement/Full and Final...

Honeybee_2

What's the difference?

A friend has a few debts and since taking a second job, is in a position to clear them one by one if she saves second jobs wages for a couple of months.

Now I know about reduced settlements but would that impact on credit score?

What is F&F settlement?

terriblesaver

F&F is an agreement to pay off the debt partially but have it cleared on your credit file as satisfied

Honeybee_2

So the reduced settlement is the same then?

She wants to buy a house in the next few years so doesn't want her credit completely shot to poo poo!:D

CLAPTON

you need to say something about her circumstances
what are her debts
has she defaulted on any of them
has she been late paying them

Honeybee_2

She was in a mess but has been on a DMP for 18 months now and has never made a late payment with them. Debts are all credit/store cards and a couple of catalogues. A couple of them went to DCA's.

CLAPTON

if she's on a DMP then presumably her credit rating is already trashed as she has defaulted on her debts.... so a F&F wont make much difference

it rather depends upon how much she is paying per month and whether they have been sold off.

rog2

Honeybee wrote:

So the reduced settlement is the same then?

She wants to buy a house in the next few years so doesn't want her credit completely shot to poo poo!:D

No - there is an explanation on an earlier thread, and if I come accross it I will try and direct you, but I beleive that 'reduced settlements' do not oblige the creditor to remove the default notice from credit file.