To repay or part repay?

Martin83_2

Hi,
I'm new on here and was wondering if I could get some advice please.

I currently have about £12,000 left to repay on a halifax personal loan. I defaulted and it is currently being managed by churchwood finance.

At the end of the month I will be able to settle the outstanding debt in full however when I phoned to get a settlement figure churchwood said that they could normally get 25% knocked off.

I've read that at the point that my account went into default there will be a marker on my credit file for 6 years. If I settle the balance by only part repaying (-25%) will I get a negative marker on my credit report for longer than the origional default marker?

HappyMJ

First things first....get rid of Churchwood Finance.

They and anybody else can easily get 25% reduction without even trying but the big difference is Churchwood will charge you 30% of the reduction in the debt to do the negotiating for you. You can use the services of several debt charities for free and get more debt paid off.

The longest the markers can stay on your file is 6 years from the date of default. So if you defaulted 3 years ago those markers will disappear from your credit record in 3 years.

Martin83_2

Thanks for that, they didn't mention the charge they would be taking!

So is there such a thing as a part settled marker?

If there is and I part settle will a marker go on from the date of settlement or will it just be the origional default one that will coming off in a few years?

Rrushi_Shqiptar

it will show as satisfied and not settled, it will show the default marker and the date show for the satisfaction or settlement will be shown separate. The 6yrs will be up from the default date

Martin83_2

Thanks, so I take it that settled looks better than satisified to lenders?

Rrushi_Shqiptar

Yes, settled is paid in full, satisfied shows it was either part of an arrangement, bankruptcy or settlement of sorts.

though the default will show and it will be reported still as a default. I have 4 accounts partil settled and reported like this via Experian and equifax

thebritishbloke

Rrushi_Shqiptar wrote: »

Yes, settled is paid in full, satisfied shows it was either part of an arrangement, bankruptcy or settlement of sorts.

though the default will show and it will be reported still as a default. I have 4 accounts partil settled and reported like this via Experian and equifax

I have a feeling this isn't right.

If I remember rightly:

Settled - You kept to the credit agreement, made all your payments on time and closed the account.

Satisfied - You defaulted, then paid off the account in full.

Partially Satisfied - You defaulted, you only paid off a % of the debt as a full and final payment.

Either way, your credit report isn't going to look good regardless of if you pay off part or all of it. Partially Satisfied is better than it not being paid at all. Satisfied is better than partially satisfied.