Partial Settlement

peteuk

As we are so nearly debt free the news that Lloyds have accepted an offer of partial settlement was a bit of a surprise. We have been on a DMP for 10 years now and the end is so near.

Outstanding £4364 (currently with Westcot)
Accepted £2000

Current payment £100.00 (which would take 44 months to pay off)

We were hoping to go on holiday next year and the £2000 is currently in a saving account.

My question is what do we do? Save £2364 at the expense of our holiday, I have a credit card which has two payments left (£300) so I could pay that off and increase the payments to Westcot. (roughly) 10 payments.

Westcot have advised us that the default will remain on the account (already dropped of her credit file) and it will show as partial settlement. Correct me if I am wrong but once the default has ran 6 years the whole debt is not visible, so it won't affect her credit score.

Thanks...

fatbelly

I'm a bit confused about what you are asking.

You offered Lloyds £2000 to settle, they accepted, you have it sitting in an account

Pay it

And yes once six years have passed since the default date the entry drops off. Only a ccj would make anything reappear.

peteuk

fatbelly wrote: »

I'm a bit confused about what you are asking.

You offered Lloyds £2000 to settle, they accepted, you have it sitting in an account

Pay it

And yes once six years have passed since the default date the entry drops off. Only a ccj would make anything reappear.

Sorry for the confusion, if we pay it, it jeopardises our holiday, the first we have had in years. I didn't expect them to accept it was a throw of the dice (so to speak)

The money comes from a PPI claim, which has mainly been used to pay off most of our remaining debts. The debts are not getting bigger as there is no interest being charged.

Vikipollard

This is a no-brainer. Pay it and be done with it.

You can save again for a holiday - you will have at least another £100/month to put away.

Not wishing to be harsh, you want a £2k holiday. You don't need a £2k holiday when you still have debt. Why on earth would you choose to pay back more than twice as much for the sake of a jolly? Unless this is a moral thing, and you actually want to pay back £4600, but even then, why waste the £2k you have on something that's over too quick at the best of times?

fermi

They can't put the default or anything else back on, even if a settlement is agreed. They are just spinning the standard line without engaging a brain cell enough to twig that it's already gone for this account.

peteuk

Vikipollard wrote: »

This is a no-brainer. Pay it and be done with it.

Not wishing to be harsh, you want a £2k holiday. You don't need a £2k holiday when you still have debt. Why on earth would you choose to pay back more than twice as much for the sake of a jolly? Unless this is a moral thing, and you actually want to pay back £4600, but even then, why waste the £2k you have on something that's over too quick at the best of times?

You're not being harsh, it's the same question I am asking myself...

We are planning a trip to Florida early next year, it's the first "holiday" we have had as a family. Last year we popped to France for a few days and up to then it was a week in Cornwall at the inlaws house. The DMP has been in place since our youngest was born and come Summer I may not be living in the UK. (Work - family may travel with me, but we are working out education ect)

I am working out that we will be debt free around the end of 2016, start of 2017. Paying the £100 to another debt doesn't make much difference.

getmore4less

Outstanding £4364 (currently with Westcot)
Accepted £2000

Current payment £100.00 (which would take 44 months to pay off)

We were hoping to go on holiday next year and the £2000 is currently in a saving account

It would not be a £2000 holiday it would be a £4364 holiday