Partial settled accounts

Jeff_winter

Hi
I was wondering how a partially settle account will affect my credit file and what consequences it will have moving forwards.

I am currently in a self managed DMP and have 4 defaults on my account the most recent in December 2014.

I have been offered a 75% settlement my a creditor and am keen to accept this to clear the debt quicker however they advised it will be recorded as partially settled...

Any advise would be appreciated.

Westminster

Once you have defaults then there is little you can do (apart from incurring CCJ through non-payment) that is worse.

So I would have relatively little concern over a PS as the DMP / AP will be visible on your credit files until 6 years after the default date.

So, if I were in your shoes (and I have been previously) then I would go for a PS as you already have defaults but I would try to negotiate better than 75%.

Is this directly with the original creditor (where you could achieve something like 50-65%) or has the debt been sold to a DCA (where you could achieve something like 30%)

National_Debtline

Hi Jeff

It’s difficult to quantify the exact impact a partially settled account will have on credit scoring. All I can really advise is that generally it wouldn’t be as good as being fully paid off and satisfied, but better than having a default with a balance still showing as outstanding.

As Westminster says, your credit file will already have been negatively affected by defaulting and having a payment arrangement anyway.

James
@natdebtline

Jeff_winter

Thanks Guys.
I guess the most important thing is clearing the debt the quickest!