Almost there

biglad

Im 3 or 4 months away from being completely debt free but is it worth trying to get an offer of a full and final settlement?

Im with payplan and they are contacting my creditors but asked if I wanted a full or partial settlement. I can raise the funds this month to offer around 70% of what I owe, is it worth doing or shall i just pay off the ones that I can and carry paying the others til i finish paying them so that they are all paid off in full. The defaults are going to be 6 years old this time next year hopefully

Just had to speak to barclays as they wont speak to a third party about settlement apparently and they said they could off me a settlement but i had to pay with debit card today, I refused and asked for it in writing, the woman told me it would cost too much money to send a letter out, which i then offered to pay for the stamp lol. She then went to say that she will send out a letter on monday with the balances and there will be a payment slip attached, I then questioned her and said she said it would cost too much, what difference is there sending out a letter with balance and payment slip, to an offer with payment slip??


Also how is the best way to go about rebuilding my credit rating, is it worth trying to get a high interest credit card , spending a little then paying it off straight away? Im a lot more disciplined now than when i got into debt so this will be ok.


Anyway any help would be appreciated

bottleofred

Hi Biglad,

Full and final settlements are ok and you could ask for settlement figures, but DON'T ever pay with a debit card over the phone unless you've got a letter with the words as a full and final settlement from each creditor. You should also keep these letters for 6 years after settlement as some other dca could come after you for money that's outstanding. If you pay say 50% to a creditor, it will go onto your credit file as a partial settlement, but the account will have been settled providing you've got documentation that the payment is as a full and final settlement of the debt. I wouldn't trust any dca who says it will be settled over the phone. Always make the offers and get the settlement letters in writing.

Good luck

Red

biglad

Thanks for the replies

So really if I can get a good offer and its a partial settlement, and the company send me a letter to say the account is closed it will show as my account being closed but partially settled on my credit file. Would this be a problem for me getting credit in the future or will the fact its closed be just as good

Yea im going to try get a credit card in the next few days to do that to build up my credit

I knew not to pay over the phone, woman got quite shirty with me but hey ho

thanks again

bottleofred

Hi biglad,

I'd guess you have a few defaults on your credit file which will hinder you getting credit. Regarding partial settlements, the companies you have partially settled or defaulted with will be reluctant to deal with you again. However, you should be able to get credit again once the defaults come off your credit file and a high interest card would do no harm as long as its used properly to cost you the least amount possible.