Not sure what to do

earthmother

I have ten creditors, totaling less than £5000, who have been on a nominal DMP (originally £5, increasing to £10 each per month recently) for some months now due to income issues. Those issues have now resolved, and I'm about to send out proper pro rata offers, which for some creditors more than triple what they've been getting.

This morning, my smallest creditor, who would only get £15 under the pro rata offer, has written out of the blue with a partial settlement offer of 20% discount. I could afford this deal, if I were to delay/reduce the new pro rata payments to the others for one month (they aren't yet aware of the offers).

I'm not sure what to do - I like the idea of getting one finally cleared, but it seems a little unfair to the others (though it would obviously increase their future payments slightly, and would not extend the overall time it would take to clear their debts).

What would you do? Pay one off now, or keep them all on the same terms (for what will be less than 18 months)?

[Deleted User]

Partial settlement is no good; the remainder of the debt will be sold on and you will be chased for that remainder by a new debt collection agency. If a creditor offers a discount, make sure it is a 'full and final' arrangement, not partial. They are trying to pull a fast one.

earthmother

Ah, I didn't realise they'd be able to sell the 'discount' on again - in that case, I'll leave it as is. thank you

happy_bunny_2

Partial settlement is what they will likely mark on your credit file. Important thing is that remaining balance is set to zero and ideally confirmation it won't be sold on, but balance is the most important.

They could say they will accept £500, mark balance as still several thousand then sell it on.

Get everything in writing first.