credit card settlement figure and credit rating

mrs_motivated

I recently divgorced, sold marital home and used proceeds of sale to clear my outstanding debts. :j

I was chating to a colleague today who told me he had been in a similar position a couple of years ago , however, before he cleared his credit card debts he told them he could not afford them anymore and was going into a DMP and he said they then offered him final settlement figures for example a credit card debt of £10,000 the offered a settlement figure of £7000. he reckons if i had done this I would have probably saved myself around £6000 .

My reply was that i was looking to get a mortgage in the very near future and didnt want to do anything which might affect my credit record and utimately a mortgage offer.

He swore that as I had no defaults and the credit card companies would have offered a settlement figure, then my credit rating etc would be completely clean.

surely this cannot be true or accurate?

Tixy

Its unusual for card providers to accept reduced offers when you haven't defaulted - on the occasions when they do they would usually enter a default at that point. And will often only mark the accounts as partially settled rather than fully settled.

If you want to preserve a good credit file then its not really a suitable route to consider.

mrs_motivated

Exactly what I though - to late for me anyway, as I paid off the full amount outstanding