To partially or fully settle?

Anthorn

I only know of such dealings with one company, Frederickson International: They will offer partial settlement of 50% of the remaining debt, put a partial payment on your credit file and remove your account from their system which means they won't pursue you anymore.

I'm sure that if you press the debt company for more information they will tell you that the remaining debt is still owed and still collectable by other debt companies. The only way that the remaining debt is not collectable is if you have "partial payment in full and final settlement" agreed in writing.

But at the end of the day a partial settlement is better than no settlement but a full settlement is best. What we should consider is that if a partial payment makes no difference to a credit rating no-one would do it!

kembe

Thanks very much! Yes, he had been defaulting on everything since August/September, but recently started making payments again, some of them he negotiated a lower minimum payment. The problem is that the payments come to more is in the account, leading to more defaulting/bank charges etc. I didn't know that the negotiated token payments would be counted as 'defaults' on the system too? In that case, weighing up between the black marks on credit files for F&F and extra defaults, I guess the extra defaults are better, although I guess either way his credit rating would remain bad for 6 years. Just trying to work out if it would be a lot better or only marginally better for the purposes of his credit file to pay off in full. Although the promise of more money in September/October has been made by his dad, that's also a few months away and I worry something happens between now and then.

Hatecreditors.com

Anthorn wrote: »

What we should consider is that if a partial payment makes no difference to a credit rating no-one would do it!

Except they would, as they'd be paying a percentage of the debt rather than all of it.