Partially Satisfied or Satisfied on Default Debt

pelic

I have 5 defaults on my credit file. I understand that these defaults will stay on my record for 6 years regardless of what I do with my debt.

I have been offered a discount rate to pay back all the debt, and then I was told it will be shown as partially satisfied, instead of satisfied. The discount rate is about 40% on each debt owed.

What are my best options here. Am I just better off paying the debt back with a 40% discount rather than full amounts because they are all in default anyway?

Will this just mean I stop getting pestered by the company as I am paying everything back (at discount), and when the time come in the future the defaults will go away.

I am not concerned about getting credit or anything in this time.

Or what (if any) are other options.

National_Debtline

Hi pelic and welcome to the MSE forums.


It is common for creditors to offer such discounts, especially for older debts. You should consider the following questions before responding to these offers:


- Are the debts definitely enforceable? For example, if you have not had any dealings with a debt in over six years it may be "statute barred" and thus too old to be sued for.


- Could you negotiate a lower settlement than the one offered so far? It can often be worthwhile starting with a much lower figure and then working upwards as the creditor may be prepared to settle for less if pushed.


If a settlement is agreed, the "partially satisfied" marker placed on your credit report will indicate that the account has been settled and closed, albeit by paying a reduced amount as opposed to the full balance. The accounts will disappear off your credit report altogether six years after the default date, regardless of whether they are satisfied, partially satisfied or still outstanding.


If you are able to agree and pay settlements on these debts, it will indeed mean that you will no longer be pursued for them. It is very important that you ensure your creditors commit to this before you make a settlement payment - our fact sheet and letter templates will help ensure that this is done properly:


https://www.nationaldebtline.org/EW/factsheets/Pages/fullandfinalsettlementoffers/lumpsumoffers.aspx


As for your other options, it's very hard to say what they may be without knowing more about your specific circumstances. If you'd like some more tailored suggestions on this forum, it's worth completing a Statement of Affairs (SoA):


http://www.stoozing.com/calculator/soa.php


and posting the results here.


Dennis
@natdebtline

pelic

Thanks for that, particularly about getting them to give me any deals made in writing, and to confirm once settled all is fully closed and they wont chase me for more.
I think I will just go the partially satisfied, it will take me about 9 months to pay everything off, means I wont be getting calls or letters, and then I can wait for my defaults to go away and then try to rebuild my credit. The good thing is I don't need future credit for anything, no mortgages or anything are affected, even my mobile phone company said they would give me a new contract considering that I have nearly completed my 24 month contract with them.