Settling a delinquent debt

MrsK147

I have been paying a debt via a DMP for 12 months yet my credit record now shows this as delinquent.

I have raised some funds so could pay this off (and intend to) but I would like to know if this will be improve my credit score at all or has the damage now been done for 7 years?

Thanks in advance.

HappyMJ

A settled default is better than one that hasn't been settled.

A creditor could take you to court for payment and the 6 years starts again once a CCJ has been issued.

So...my advice...offer 50% of the outstanding debt in full and final settlement. If they refuse and counter with something higher then consider paying the debt off.

January2015

I would start by offering 30% of the debt as full and final and see what they come back with. You may have to increase your offer but if you don't start low you will never know what the lowest they would have accepted would have been. Good luck

sourcrates

MrsK147 wrote: »

I have been paying a debt via a DMP for 12 months yet my credit record now shows this as delinquent.

I have raised some funds so could pay this off (and intend to) but I would like to know if this will be improve my credit score at all or has the damage now been done for 7 years?

Thanks in advance.

All depends on wether the account is still held by the original creditor, or a debt collection agency, which is it ?

The OC won't accept anything much short of full payment, wearas a DCA may accept a much smaller offer, as they will of paid peanuts for the account in the first place.

Very important distinction !!!

MrsK147

Thanks everyone.

This debt is still with the OC (HSBC) and I have offered a settlement previously that was refused. The said they wouldn't settle for less than 80% of the total. Should I do this?

January2015

How old is the debt? It might be worth CCAing them to see what documentation they hold. If they can't provide the documentation the debt may be unenforceable.

sourcrates

MrsK147 wrote: »

Thanks everyone.

This debt is still with the OC (HSBC) and I have offered a settlement previously that was refused. The said they wouldn't settle for less than 80% of the total. Should I do this?

Options are these :

(1) Pay the 80%, have done with it.

(2) Stop paying altogether, eventually the debt will be sold on, a DCA will accept a lot less than 80%.

No risk of legal action by waiting, creditors just sell on old accounts.

Your choice in the end !!!