partial Vs fully settled on default accounts

just.me_3

Thrugelmir wrote: »

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.

If you are approaching a lender you defaulted with for a mortgage then perhaps (but the damage has already been done with default - so partial settlement? Full settlement? Irrelevant IMO)... but a partially satisfied default with perhaps a couple of years to go before it drops off a credit report, would have no bearing on a mortgage decision by a lender you have never borrowed from before once it's gone from the report.

Pros and cons to it for sure, but money can be saved with partial settlements especially if you'll never do business with the creditor again, and it's unlikely they'd do business with you - even if you settle in full.

mistertml

So

I take it theres no right or wrong answer whe it comes to settling the full amount or partial.

Thanks

happy_bunny_2

About right. You just need to note the points made on here then decide for yourself.

Personally, I would do the partial settlements.

mistertml

happy_bunny wrote: »

About right. You just need to note the points made on here then decide for yourself.

Personally, I would do the partial settlements.

Thanks

I am interested to find out how it has affected anyone who has gone on to get a mortgage after both full/partial settlements. Because if it gives me a better chance of getting a larger mortgage after the defaults drop off then it is best to pay them off in full. Otherwise I might as well save the extra cash and put that towards the new house.

Thanks Again

TML

mistertml

Hi

I would like to know on a balance of £12,000

How much money do I need to have to start to offer settlements.

I currently pay £150pm to the creditors in total and looks like I'll be done in 80 payments.

Thanks

InsideInsurance

Think about it logically, a mate asks to borrow some money off of you. You ask around to others who have lent him money in the past and a few of them say they've had problems getting their money back. If they say they did eventually get their money back in full or that they ended up getting back less than they should have but accepted it to close the issue, would that effect your decision to lend?

Debt underwriters are no different, they will balance the risk -v- the potential profit and either adjust to get to a balance they are comfortable with or decline because they just cant get a balance

Does that mean you should pay in full? Well that in itself is already a balancing act as the defaults may well already be pushing up the APR to the ceiling and the underwriter may not adjust any further for the partial settlements so there is no benefit for paying in full. On the flip side it may be the straw that breaks the camels back and results in a decline or may result in higher APRs.

Possibly worth considering that not that long ago the Experian rep on here said it was their belief that no one is using the flag in their decision but of cause Experian just provide data and lenders have no obligation to tell them which bits they are using and which they arent beyond the common sense that giving your suppliers feedback is always sensible

mrsval

mistertml wrote: »

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

HI, Ive just finished a 4 year debt free plan and regardless whether I made a settlement payment or continued with the regular payments or not I still had defaults. However on the plus side I did go for settlement and it worked for me because I was debt free 2 years early and I now have cash in my hand every month that im paying extra on my mortgage so if I want to move I wont have to go cap in hand to any bank. If I was you I would clear the debt sooner if you can. Good luck:beer:

mistertml

mrsval wrote: »

HI, Ive just finished a 4 year debt free plan and regardless whether I made a settlement payment or continued with the regular payments or not I still had defaults. However on the plus side I did go for settlement and it worked for me because I was debt free 2 years early and I now have cash in my hand every month that im paying extra on my mortgage so if I want to move I wont have to go cap in hand to any bank. If I was you I would clear the debt sooner if you can. Good luck:beer:

Thanks for that.

You couldn't tell me what percentage you paid on settlements?

Thanks

glentoran99

mistertml wrote: »

Thanks for that.

You couldn't tell me what percentage you paid on settlements?

Thanks

i paid 25% 70% and 80%

mistertml

glentoran99 wrote: »

i paid 25% 70% and 80%

Hi

I take it I will need to save a fair amount of money in order to offer settlements?

Any advice will be greatly appreciated.