Partially satisfied debts?

Spidie

I have a credit card debt of £1075..not a lot but I had it for ages and have been paying it off in tiny bits as am on benefit and can't pay more. I just got a letter from the debt collecting agency that now holds the loan which is offering to let me pay off only 25% of the balance (£275)..this is a lot for someone in my position obviously. they say it will be recorded as partially satisfied with credit agencies. What does that mean?

Is this offer too good to be true or should I go for it and get rid of one of my debts..?

I really want to pay it off..but if there are major repercussions, maybe I won't..have to make a decision within 14 days.

Any advice?
Thanks!

stephane_2

If you can get the money I strongly suggest that you pay. You probably have a registered default for that debt on your credit file so the damage is already done, partially settled basically means that once paid your account will show as settled but that the balance was partially settled, but the default if there is one will remain on your file for 6 years

Spidie

Thank you, I think you're right..it'll make things tight in the short term but in the long term it would be great to be rid of it. Do you know how I find out if there is a default on my credit rating. I have been pretty good at keeping in touch with them and paying as much as I can but no harm in finding out what state my credit rating is in..not that I intend to borrow ever again!!

stephane_2

If you can afford it would be best to check with Experian and Equifax, if you go on their website you can get your report for £2 or even for free with Experian but you'll have to make sure to cancel your subscription within 30 days

Spidie

Have examined the wording of the letter they sent: is says it is a "discount on outstanding balance without prejudice". they are "prepared to offer (me) the opportunity to settle the debt by paying a one off discounted sum of 25% of the outstanding balance. This means we could close your account on receipt of a payment of £275 and no further action will be taken. You will not be required to pay back the remaining balance and (the bank) will record this debt as partially satisfied with credit agencies."

I am sorry to ask a stupid question but I get so anxious when I read letters like this that I don't think I can see what's in them! It's the "could close" that is worrying me. But does this look like I need further clarification ( i.e. a letter that says "full and final payment" ) or can I act on this letter without fear that it will come back to haunt me in the future? I think I will just have to accept that it will be on my record for 6 years...

Thanks for any feedback!

stephane_2

The letter is quite clear....but keep the original just in case.