In need of advice with Full and Final Payments/Partial settlement please!!

Sparklestar1127

Hi guys! Newbie here so please go steady with me, I didn't know where else to go for sound advice
Here is our position, me and my Hubby owe around 15k on a Santander OD, Santander CC, Santander UPL and Barclays UPL. We started making reduced payments through Step change in March 2011 as my Husband was medically dismissed from his employment. At the time I was on maternity leave (we have 2 young children) so money was really really tight

Anyway, we have continually made our reduced payments to Step change, of around £70-90 pm depending on each review and now my husbands Nan has died My MIL has said that she is prepared to clear at least some of the debt for us with her inheritance.

What I'd really like to know is the difference between partial and Full and final and what impact it will have on our credit files. The last time I spoke with Santander they said to offer 80% but I don't want I offer a lower amount if it's going to hang around for the next 10 years in our reports. I'm a bit clueless to all this having never been in a bad position until 2011. Our very first non payment was feb 2011, none of these debts have been sold on (I still contact the banks for balances ect but all accounts have defaulted) I don't really know the best way to go about this I'm so confused! Should I just pay the full amounts owing and be done with it after 6 years? Help please

Thanks in advance x x

glentoran99

Whether you pay in full or part in will drop off 6 years after the default

Sparklestar1127

Thankyou for that! So it's probably worth me trying to settle on less then. Thankyou!

longtermplanner

After 3 years I would expect them to settle for a lot less than 80%. I would probably start at 40%. Make sure your letter says that you are being offered the money by MiL if it can be used as a full and final settlement.

sourcrates

And please remember the debt will be shown as "partially settled" on your credit file.
To achieve "settled" status, the debt would need to be repaid in full.
I only mention this as lots of people post back afterwards saying there credit file is incorrectly marked, but its not.

glentoran99

sourcrates wrote: »

And please remember the debt will be shown as "partially settled" on your credit file.
To achieve "settled" status, the debt would need to be repaid in full.
I only mention this as lots of people post back afterwards saying there credit file is incorrectly marked, but its not.

Whats the standing if a creditor said they were going to mark it partially settled but you have a letter stating

and i quote

"We can now advise subject to clearance of funds your account has now reached paid in full status"

could i argue it should be marked settled?

sourcrates

glentoran99 wrote: »

Whats the standing if a creditor said they were going to mark it partially settled but you have a letter stating

and i quote

"We can now advise subject to clearance of funds your account has now reached paid in full status"

could i argue it should be marked settled?

Sometimes, for example, a payday loan lender, whose loan you have defaulted on, may offer to mark your file as "settled" if you agree to pay the original loan back, minus any interest and charges, just in order to clear the debt.
Some times it can be a matter of negotiation, you have to judge it on a case by case basis.
No harm in trying.

Sparklestar1127

Thankyou for the replies so, does that mean that 6 years from default date the partially settled will still drop off? Even if it's not fully repaid? I was under the impression that full and final payment means it is actually settled as long as both parties agree. Either way my credit rating will be screwed for the next 3 years as the defaults were registered in 2011. If that's the case I have nothing to lose! Thanks so much for the replies!