Advice on Settlements

acheekymunky

I had defaults on accounts that I have had payment arrangements with for the past 6 years. The last default drops off my file in April (some have already gone).

I have not cleared any of these balances (Even the defaults that have dropped off)

I make set payments each month as a token & at this rate it will be 20+ years before the biggest balances are cleared.

. I might be coming in to some money soon probably after April & I want to offer partial payments to clear all the debts. How will this affect my credit file as the defaults have gone? I've seen people say it was marked as only partially settled on the Credit File & this had a further detrimental effect. Would that have a negative effect on me or make no difference at all?? I'm trying to build up my credit score.

Thanks

Tixy

If they have already dropped off your credit file then they shouldn't reappear or affect it. Worth saving a copy of your credit file without them on (just in case as debt collectors don't always do what is allowed).

If they are still showing then having them shows as partially satisfied defaults is unlikely to be considered worse than having defaults that aren't yet paid off. That said if they are still showing its worth trying to negotiate (in writing) for them to be marked as though fully satisfied.

lizzie73_2

You must get it in writing that the account is full and final settlement and that no further action to recover the debt will be taken against you by them or other parties and also the balance after settlement will be nil. I settled a debt thinking full and final but found out 6 years later that they had put it as satisfied partial settlement and they still say I still owe the balance. Research full and final letters to ensure you cover every avenue against them recovering the remainder.
Good Luck