defaults pay early settlement figure or full amount?

harrysmummy1

hi

after 3 years of financial nightmares i am finally in a place where i can start to sort myself out financially.

i have 5 defaults on my credit file that i want to clear asap. i have contacted the debt recovery companies and arranged payments plans and 3 of them have offered me reduced early settlement figures (saving over £200 on each so £600 in total) this is a very tempting offer but i believe (please correct me if this is wrong) that if i pay the discounted amounts it will show as settled on my credit file but it will show as settled with a part payment and that will still remain on file for 6 years.

so my question is to improve my credit as soon as possible is it better to get them settled as soon as possible with the early settlement offers or to pay them over a longer time but pay the full amount?

i am so confussed

rizla_king

Part settlement won't make much difference on defaults that old. May as well take the discount.

harrysmummy1

hi thanks for the reply

i didnt make myself very clear, they have only gone to defaults in the past 12 months (but its due to struggling for the past 3 years its got to that point)

happy_bunny_2

I would take the discounts, as long as all done in writing and the confirm the balance of the account will be set to zero.

rizla_king

Agreed. The default is the thing that shafts your record. You may as well save some cash.