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Stepchange "Settlement" Any Pitfalls? Advice needed...

On the 2nd attempt It's looking like I've managed to manoeuvre myself to being in a position to get my debts settled.


I'm conscious that there could be scarring left on my credit record and just wanted advice. Is there anything I need agreed in the wording of the settlement?


Will they / should they be "full and final". Will this affect me forever?


I appreciate it will take time for my credit score to return to something that resembles good but any idea of how long this will be? Should I look at getting a poor credit, credit card and keeping this at £0.00?
Back in the game...

Comments

  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
    Tenth Anniversary 1,000 Posts Combo Breaker
    Hi D3PO
    D3P0 wrote: »
    On the 2nd attempt It's looking like I've managed to manoeuvre myself to being in a position to get my debts settled.

    When you say "settled", are we talking about clearing the outstanding balances in full, or a reduced one-off lump sum? I am assuming the latter.
    D3P0 wrote: »
    I'm conscious that there could be scarring left on my credit record and just wanted advice. Is there anything I need agreed in the wording of the settlement?

    Assuming that you are offering a reduced lump sum, I refer you to our sample letter designed for this purpose:

    https://www.nationaldebtline.org/EW/sampleletters/sole-letters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx

    D3P0 wrote: »
    Will they / should they be "full and final". Will this affect me forever?

    Nothing will affect your credit file "forever". It holds information recorded on a rolling six-year basis.

    If you have settled by paying less than the full balance, the creditor is entitled to record the account as "partially settled" rather than "settled in full". Either way the debt is regarded as paid.

    D3P0 wrote: »
    I appreciate it will take time for my credit score to return to something that resembles good but any idea of how long this will be? Should I look at getting a poor credit, credit card and keeping this at £0.00?

    Very hard to give a firm answer to this as the idea of a "good" credit score is relative: relative to what sort of credit you will need, relative to the other factors that a lender will use to make lending decisions such as your salary, your age and many more. Any "score" that a credit reference agency awards you is only a relative indicator of how easily you might be able to obtain credit; these scores are not used by lenders themselves, who have their own undisclosed acceptance criteria.

    Dennis
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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