Partial Settlements on credid cards- advice/ experience needed!

Stubblet

Hi

I have around £6680 of debt on an MBNA card which i have been making token payments on for the last 6 months. I have negotiated a partial settlement of £1,900 which i am happy with and am waiting to receive the terms in writing (i am aware this isnt the same as full & final, but is the best i can get with them or face a default)

My question is, i know this will be marked on my credit file as 'partially settled' for 6 years, will it make a difference if i also partially settle with my other 2 credit card-Ie is having 3 partially settled accounts worse than just 1 on my credit file?

I have around £7k on barclaycard and £3k on RBS... have been making min payments, but really want to get my debts cleared asap and am struggling every month. I know to get partial settlements accepted i will need to stop payments for a few months & advise of financial difficulty for it to be considered. My parents will be able to lend me some money in a few months after the sale of their house, hence why i would be in a position to offer lump sums...

I'm really not sure whether to carry on making min payments on these 2 cards, or attempt partial settlements and finally become debt free- albeit with detriment to my credit file

I do have a mortgage with my sister which is fully up to date, although i do worry that if/when we sell and i want to get my own mortgage i wont be able to due to the partial settlements on my credit file...??

Any help/advice most appreciated. Thank you.

Tixy

Its very rare that any lender would agree to a partial settlement without entering a default on your credit file fist.

If MBNA haven't entered one yet check carefully that they won't enter a default at the same time as the partial settlement.

You say you are happy with partial settlement? are you going to still be happy and accept the deal if they can still sell the remainder of the debt on to debt collectors and you remain liable for it?

Its only really advisable to make a reduced settlement offer if it is accepted on paper as a full & final settlement, even if the paper makes it clear your file will show a partial settlement.

With the other 2 it would likely not just be a case of missing a few payments but actually waiting for them to enter default notices on your credit files, even then they may not accept a reduced settlement for months, or ever, they might instead decide to take court action against you.

One partial settlement on your file won't look great but certainly wouldn't be viewed as negatively as several recent defaults and several partial settlements.