Paying off debt in one go

popjoc

Thanks for all the replies. I didnt mean to open a can of worms first thing on a Sunday morning, but it did give both of us a better insight into debt and how it affects people differently. I, in no way, meant to insult anyone who is in the position whereby the only option is to negotiate with Debt Collection Agencies. And i also appreciate that we are in a more favourable position than many others.

So we will just make sure that when we sell up, one of the first things will be to pay off what we owe, and not go down the road of purposely destroying our credit rating.

Once again, thanks for everything guys, it certainly opened my eyes.

blisteringblue

popjoc wrote: »

I agree that it is not the best route to go, but given we have good credit histories, why should people with poor history get a better offer than someone in a position to pay off their debts.

If you think the hassle you get from creditors to get into a position where they are prepared to settle for part payment is a better offer you are totally mistaken. It's a complete nightmare living under those circumstances.

Even if they accept a settlement it's still recorded as a partly settled debt on their file. They are still credit pariahs for another 6 years after the settlement is accepted. There is no getting off lightly.

sourcrates

popjoc wrote: »

My question is this, would we be able to negotiate a deal with the CC companies, or is it just better to pay everything that is owed.

Hi,

I know others have answered your question above, but in my experience, everything is negotiable.

If you intend to close the account when settled, a creditor would maybe accept an offer somewhere in the region of 90% of what is owed.

However, your credit file would be marked as "partially settled" instead of settled, if that would make any difference to you or not.

If not defaulted, i doubt they would accept a lesser offer than this, but most creditors will be open to some kind of full and final negotiation, basically, if you don't ask, you don't get.