Help with satisfied default

Cam2907

Hi me and my partner have got in a mess with debt from the past we have a end loan which defaulted 4 years ago with a balance of 7000 long story short were trying to sort everything out as we have buried our heads for so long , the position were in now we would never be able to pay the full amount TVs have offered 1000 partial settle meant , both our credit files are on poor , will this be the best option will it improve credit file at all or look negatively the option to pay full balance isn't a option but does this look better than having 7000 outstanding and just paying 20 a month , what would you do?

HappyMJ

Cam2907 wrote: »

Hi me and my partner have got in a mess with debt from the past we have a end loan which defaulted 4 years ago with a balance of 7000 long story short were trying to sort everything out as we have buried our heads for so long , the position were in now we would never be able to pay the full amount TVs have offered 1000 partial settle meant , both our credit files are on poor , will this be the best option will it improve credit file at all or look negatively the option to pay full balance isn't a option but does this look better than having 7000 outstanding and just paying 20 a month , what would you do?

If you've not made a payment or acknowledged the debt in the last 4 years I'd just wait out the next 2 years.

If you have £1,000 and all of your bills are up to date then that is a reasonable offer to save £20 per month. That's 4 years of payments then paid upfront and the debt is settled. It would be better if the debt shows as settled in full but most creditors won't do that.

It will improve your credit but not immediately. If you don't pay the amount requested you still owe £7,000 but paying the debt off means you owe nothing which is much better.

I'd take it, the account will appear as closed on your credit report and in 2 years the default and the account will no longer show at all.