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Negotiating settlement sum for credit cards - credit rating????

Hi

I am not often in this neck of the woods on the forum....I am usually in weddings, old style or having a good old nosy on marriage/relationships etc.

When in actual fact, the only reason I even need to be concerned about being MS is because of debt!!! So I have forced myself over here.

Anyway, I have quite a few credit cards and I might be coming into a small lump sum soon from family. Planning on putting it all towards debt, totally against my instinct of spend spend spend but trying to tell myself I won't be any better off if still left with debt at the end.

Anyway, if for example I managed to negotiate with a CC company that I pay them half of the amount owed, lump sum, to close the account, would this affect my credit rating as in not all paid off???

2 of the CC companies are now with debt companies, one of which offered me closure for 50% payment but there was no way I could afford that at that time and I told them as much.

If anyone wants to comment on the general attitude of society not paying their debts etc, I know the debts are mine and I want to pay them off but I think I would be putting the money to the best use for the future if I can close as many cards as possible.

But can anyone advise on whether it will affect my credit rating more adversely than if I did pay the full amounts off - which would take several years!!!!

Thanks for your help
Debt Free Wannabe by 1 January 2016 :o


Jan 2015 GC £520/£450
Feb £139/£450

Comments

  • bottleofred
    bottleofred Posts: 2,902 Forumite
    Hi legalblonde,

    If 2 of your cards are already with dcas then your credit rating will be affected. It may be that you have received defaults on the cards and this will harm your ability to get any kind of credit for a total of 6 years until the defaults drop off your credit file. Some people do manage to get credit with defaults after 4 years though. You need to check your credit file with all 3 agencies and see what's on it. Any defaults that are settled obviously look better than unsettled defaults. Partially settled debts (the 50% offer from the dca) are shown on your credit file as such and stay on your credit file for a year or 2 (sorry I'm not 100% sure of the time). If you do get the cash to clear them though, pay off the highest interest first.

    Good luck

    Red
    If you've nothing decent to say, perhaps you shouldn't say anything.

    £2 savings jar £300:D
    Total credit card debts £1250:mad::mad::mad::mad::mad: - Will I ever learn!!
  • LegalBlonde
    LegalBlonde Posts: 1,183 Forumite
    thanks for your quick reply, the 3 agencies, can you remind me....I am with experian but I didn't give them my new address so at the minute only one card is on there (i just gave them my new address and it will take 24 hours to update)......who are the other 2 agencies? I knew that you need to be with more than 1 to see the full picture. Thanks for your help
    Debt Free Wannabe by 1 January 2016 :o


    Jan 2015 GC £520/£450
    Feb £139/£450
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