partial Vs fully settled on default accounts

mistertml

Hi All

Is there a benefit to settling accounts in full if the accounts in question have defaults applied?

Ideally I'd like to settle all accounts in full but just wanted to know if it makes a difference when my credit file is already damaged. My defaults will be dropping off from October 2015-December 2017 even though all accounts should have defaulted at the same time.

Thanks in advance

TML

rizla_king

Hardly any benefit at all if the defaults are already over 3 years old. You may as well save some cash.

happy_bunny_2

And you could complain if the defaults were not issued in a timely fashion, usually 6 months.

Thrugelmir

Partial settlement limits the possibility that the same lenders will consider transacting business with you in the future.

Your choice as to whether you wish to take this chance.

mistertml

Thanks for the advice

The reason I ask is because I would like to eventually buy a larger house and don't want to shoot myself in the foot if no one is willing to take me on after the defaults drop off.

Halifax has passed both of my debts to DCA so I assume that they still report back to them?

I'll also try to get the default dates aligned.
Would this mean that at the end of the default they would or could go for CCJ even if I'm making regular payments to them?

Thanks again

TML

happy_bunny_2

Halifax may not lend to you again even if you pay in full. Depends what records they keep.

Defaults falling off and CCJs are not really related.

mistertml

happy_bunny wrote: »

Halifax may not lend to you again even if you pay in full. Depends what records they keep.

Defaults falling off and CCJs are not really related.

Hi

In other words I am wasting my time clearing the balances in full then?

is that right?

Thanks

happy_bunny_2

If they agree to a partial settlement, then morals aside, yes. Just avoid using them ever again.

If they don't want to settle for less, they can issue court papers and you can pay in full and avoid a CCJ.

mistertml

happy_bunny wrote: »

If they agree to a partial settlement, then morals aside, yes. Just avoid using them ever again.

If they don't want to settle for less, they can issue court papers and you can pay in full and avoid a CCJ.

I should be ok for now...

Just paying each creditor an agreed amount. And all being well I should hopefully be able to pay every penny I owe back in 3 years if I stick to the budget and put any spare cash towards the debts.

I will leave £1000 as an emergency fund to be on the safe side.

Thanks

just.me_3

I would partially settle personally. A default is a default, and whether you settle in full or partially, the lender will still have it on their system long after it's dropped off your credit record.

Save yourself a few quid.

Thrugelmir

just.me wrote: »

I would partially settle personally. A default is a default, and whether you settle in full or partially, the lender will still have it on their system long after it's dropped off your credit record.

Save yourself a few quid.

Then people wonder why are struggling to obtain mortgage at a later date. Easy to take a short term view. However this could be a costly decision.