full and final payments

happyfeet333

hi im new to this so I hope what I write makes sense! for the past 8 years I have been paying back debts on credit cards via Chiltern a debt management company. I would like to know how I could go about paying off this credit card companies with a full and final payment. is there a certain % that needs to be paid back? do I get in contact direct with them or go through Chiltern? if they accept is that the debt cleared or does it reappear on my credit file.? my credit score is good now, as all the default notices have been cleared due to time lapsed. if anyone could help that would be great:j

InsideInsurance

Technically, a full and final settlement would be paying the outstanding balance in full, hence the first word. If you are in a bad debt situation then many lenders may accept a partial and final settlement (ie you pay off less than the full balance and the write the rest off). Exactly what percentage they will deduct will vary by lender and by how up to date the account is.

If you make a partial settlement it will close the accounts on your credit file but will show as a partial settlement for the next 6 years which inevitably damages your history as it shows you reneged on the full agreement.

Paul_Herring

happyfeet333 wrote: »

is there a certain % that needs to be paid back?

Typically 100% plus any interest since your last statement if you don't want it to appear as a black mark on your credit file (and companies won't usually accept any less unless you're seriously in arrears in which case your credit file is already shot.)