We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
We're aware that dates on the Forum are not currently showing correctly. Please bear with us while we get this fixed, and see Site feedback for updates.
Stepchange "Settlement" Any Pitfalls? Advice needed...

D3P0
Posts: 97 Forumite


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?
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...
0
Comments
-
Hi D3POOn 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.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.aspxWill 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.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
@natdebtlineWe 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 Steps0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 348.3K Banking & Borrowing
- 252.1K Reduce Debt & Boost Income
- 452.4K Spending & Discounts
- 240.9K Work, Benefits & Business
- 617.2K Mortgages, Homes & Bills
- 175.7K Life & Family
- 254.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 15.1K Coronavirus Support Boards