Settling a Default notice

DAM0

Hi Guys, first post!


I currently am on a DMP with 6 creditors and have cleared around 10k in the last 18 months and will be debt free around November 2016 at the current rate.


However I have come into some inheritance which means I am able to pay these off in full in the next few weeks.


My question is I have been offered a reduced settlement figure by 2 creditors which would save me 3k overall they will mark the default notice as settled but with a marker I believe of "Partial payment" rather than "Settled in full"


How seriously would the partial payment effect me in the long term. With no debt I will have enough saved for a mortgage deposit in 18 months and would like to reassess my options then, I am fully aware it will be a struggle to get this but would the "partial payment" on the credit file go against me too much in the future it warrants spending the extra 3k and clearing in full?


Cheers guys,
Thank you in advance!!

happy_bunny_2

Well done on paying off so much

What are the default dates?

How many defaults are there? 6?

fermi

Can't find the post at the moment, but James Jones from Experian did post a little while back that in their experience long term most lenders do not really let the partial settlement flag affect things very much. The default is a bigger factor, and that a diminishing one.

Mortgage lenders may be more sensitive I suppose? Not sure.

DAM0

Cheers for the speedy responses guys!


There are 2 defaults both with nationwide and dated in and around April 2013

happy_bunny_2

I would take the partial settlement.

So, what are the other 4 accounts being reported as? If arrangements, these will screw you for longer than defaults.

DAM0

Yeah they are arrangements but I will be able to pay these off at the same time.