NRAM will accept offer on early loan settlement

debtfreeinayear

Hi,

I have a question about an existing loan, on which I have a balance of circa £16,000, I have 2 months arrears on it, which will be cleared by the end of the year and have had a history of a fair few late payments in the 6 years Ive had the loan. Good news is that I am due to receive a bonus at end of April which means I could settle the the entire amount in one go. I spoke to NRAM and they said they would take an offer of a lesser amount if I was able to settle the entire loan early and that this would show on my credit file as a "part setteld" account.

My question is.. how would this reflect on my credit file and if it would be seen negatively and if it really matters in that better to have cleared the debt early even if part settled..?
I'd be really grateful for any thoughts and any idea about what sort of offer I should make to NRAM?

Thanks alot

Nearly debt free!!

rising_from_the_ashes

debtfreeinayear wrote: »

would be seen negatively

In a word .... yes.

It would show as "part settled" on your credit file - rather than "fully settled" or "settled in full" (if you paid in full).

If you do go down this route, ensure that your credit file is also updated to show that the outstanding amount is £0 (to ensure no further monies can try to be claimed in the future).

DevCoder

It will be a negative marker for 6 years

No offense, but if you have the ability to repay the money you borrowed in full via a bonus then why wouldnt you?

debtfreeinayear

Thanks for the comments. My intial thought was that I would settle it in full, bcause that's what I borrowed and want to avoid further damage to my credit file and hadn't really thought about doing it any other way. But having been in (considerable) debt for 7 years, the thought of setling early and having some cash in the bank is mightily appealing, if i'm honest.. but appreciate it will come at a cost to my credit file. I 've had payday loans several ( over 18 onths ago and all fully settled and a history over the last 2 yrs of late payments and arrears of up to 5 months, now virtually all cleared) So the only further borrowing i would want to do would be a mortgage and I suspect with my history I'm unlikely to get one of those even when I'm debt free for some time.. so was really thinking along those lines in taking the early settlement option, in that it will probably take a number of years to repair my file.