Paying off one debt but leaving other debts "going"

AngryDog

Is this practice general frowned upon?

I may be in a position to pay one of my creditors off early next year (around £350). If I paid this one off, would it be frowned upon?

Im not in a DMP etc, I'm managing my own debts.

Thanks.

Tixy

If you are not in a DMP then you can pay back your debts as you like.

AngryDog

Brilliant, thanks Tixy

MrWillyWonka

Absolutely not!

As long as you are making the minimum required payments to all your creditors it's your business on who you pay off first, basically do it the way that fits you best.

AngryDog

I am making reduced payments to my creditors, would that make if different? (as said, no official DMP).

skint-student-nurse

I very much doubt it would as your not in an official DMP. I believe martins advice to those with debts are advised to pay off the highest APR ones first,therefore favouring repaying one debt over another, so i cant see it being an issue. how would your other creditors know anyway?

AngryDog

I guess they'd only know if they checked my credit file.
I dont have any interest being charged now its all be frozen.

I dont intend to get any credit for a long time - am I better trying to do fully satisfied settlements or partially satisfied? will it make much difference to me, as my credit rating is shot to bits anyway.

Tixy

If you can get them to agree to reduced full & final settlements then I would go for it. Try to get them to mark your file as satisfied (in full) but even if they'll only go for partially satisfied as long as you have written confirmation from them that your payment will be in full & final settlement and neither they nor anyone else will chase you further then thats the really important part.

AngryDog

Thanks Tixy - How would affect my trying to get credit in the future (ie a mortgage for when I want to get back on the property ladder) if i had partially sattisfied.

Tixy

Well it would affect your chance of credit whilst the settlements appeared on your file - but if you say you file is already trashed then I'm guessing you already have defaults etc for these debts?
If you have defaults then you file will look bad whilstever you have defaults (and defaults are much worse than partial settlements).

Say if you partially settle a debt that has a default from 2years ago then the whole debt including the default and that it was partially satisfied will disappear 6years after the original default.

If you have debts without defaults then it will usually be worth settling those in full (and they won't usually accept partial settlements). This is because these debts and the record of the settlement will be on there for 6years from the date you settle, which could be quite a while after all your other adverse data has dropped off.

AngryDog

Thanks Tixy.

I believe all of my debts are now defaulted, with the odd one out being the Defaulted / fully satisfied, which is the one I mentioned in my other thread, and I will be writing to NRAM about.