How to pay off £5000

Tixy

boppy wrote: »

been told by a work colleague if you have a debt of for eg 3K on cc you can offer to pay the cc company a much lesser amount in full and final settlementand will not affect your credit rating ...to me this seems very unfair if you have run up the debts you should pay them off.Has any one else heard of this so as i can put my colleague straight !!!
thanks

Generally lenders will only consider a reduced full & final settlement if a debtor is already in arrears and therefore has already had their credit file affected. Most often a reduced settlement will be considered when a default has already been marked on the credit file and when the creditor has agreed to freeze interest.

If a person does make a reduced settlement lenders will sometimes mark their file as a partial settlement rather than settlement so other lenders / potential lenders will know that they didn't pay back the full amount.
Sometimes people can get them to agree to mark it as settled in a normal way - its all down to what you can negotiate in writing with the creditor first.

blacksta

Why would you want to pay a partial amount when you have spent the bank's money