Striking a deal with creditors

Elmo_em

I've just had a compensation pay out and want to now pay off all debts. My dad is suggesting I call the CCard company's and banks and ask them if they would accept a reduced lump sum payment.
However I'm not sure how this will affect my credit rating as I am about to apply for a mortgage!
Any help or advice would be gratefully accepted.

Tixy

Hi

Are you currently up to date with your debts? all payments made on time?
or are you in reduced repayment arrangements/already with defaults on your credit file?

Elmo_em

Hi,
I am up to date completely and paying more than minimum payments already.

Tixy

In that case it is unlikely that your creditors will agree to any reduction on your debts.

In the event that they did then they would likely indicate that you had only partially settled the debts, which would likely impact on your ability to get a mortgage (or what rates you might be offered etc).

sourcrates

Elmo_em wrote: »

I've just had a compensation pay out and want to now pay off all debts. My dad is suggesting I call the CCard company's and banks and ask them if they would accept a reduced lump sum payment.
However I'm not sure how this will affect my credit rating as I am about to apply for a mortgage!
Any help or advice would be gratefully accepted.

As Tixy says, your creditors would only consider this if you had defaulted on your repayments, as you are up to date with everything, unfortunately they would not even look at this as an option, the old adage, don't ask, don't get doesn't really apply in this situation, although it never hurts to ask !!!!!