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Effects of full or partial payment

sentientpoet
Posts: 49 Forumite


Hello all DFW,
Apologies if this is in the wrong section (not sure if it was better here or in the credit report section).
I first came here around 2006 after a business failure (long story!), and since then have kept my head down and cracked on. I was left with unsecured debts totaling £103,000 - but thanks to a determination to clear them I have so far paid back £83,000 through a (not-for-profit) DMP and can finally see the light at the end of the tunnel... :beer:
Checking with the three main CRAs earlier today, nearly everything has dropped off, and I will soon be in a position to clear the remaining balances.
I have one remaining default on my file (which drops off Sept 2015), one AP (which shows as Arrangement to Pay on one file, and AR Up to date on another file - it was never officially defaulted, annoyingly), and a third account which shows as a series of 6s in arrears.
My question is really about that third 'in arrears' account. It was never defaulted, and it is only registered on Equifax. As this will show up for a further six years even after settlement, is there any credit benefit to paying the full balance rather than a partial/reduced balance as an F&F settlement? What difference does it make to have 'settled' rather than 'partial' and how long for either will it take to become less important?
Hope someone can help!
Apologies if this is in the wrong section (not sure if it was better here or in the credit report section).
I first came here around 2006 after a business failure (long story!), and since then have kept my head down and cracked on. I was left with unsecured debts totaling £103,000 - but thanks to a determination to clear them I have so far paid back £83,000 through a (not-for-profit) DMP and can finally see the light at the end of the tunnel... :beer:
Checking with the three main CRAs earlier today, nearly everything has dropped off, and I will soon be in a position to clear the remaining balances.
I have one remaining default on my file (which drops off Sept 2015), one AP (which shows as Arrangement to Pay on one file, and AR Up to date on another file - it was never officially defaulted, annoyingly), and a third account which shows as a series of 6s in arrears.
My question is really about that third 'in arrears' account. It was never defaulted, and it is only registered on Equifax. As this will show up for a further six years even after settlement, is there any credit benefit to paying the full balance rather than a partial/reduced balance as an F&F settlement? What difference does it make to have 'settled' rather than 'partial' and how long for either will it take to become less important?
Hope someone can help!
0
Comments
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Annoyingly, if an account has not already been defaulted, they can do so at any time, if its marked "AP" it can stay that way until satisfied, or paid off, if your bothered about how your credit file looks, a satisfied debt looks better than one that is marked "AP".
If your looking at future borrowing :eek:, then a creditor will usually only look at your previous 3-6 month credit history (some look further back than this).
To answer your question I don't think there will be much benefit to settle in full rather than partially.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0
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