Advice on making a settlement with debt agencies

bobbyd36

Hi,
In the past I got into some credit card debt and after some tooing and froing I agreed to pay a fixed amount to each through what was CCCS at the time. Over a few years the various companies have either merged or bought my debt so that I am down to 5 payments to 4 companies including Robinson Way, Cabot, Marlin and Capitol One. I have kept up the payments at all times initially at the £1 a month and then sharing £260 proportionally between them for over 5 years. I pay no interest.
I recently found out that I actually have an excellent credit score due to keeping paying which came as a surprise.
I hope to sell the property I shared with my ex-wife in the near future and will receive some equity but not enough to settle all the debts in full. They are unaware of the house sale and the proceeds will initially be placed in a family members account.

Eventually I get to the question - if I make the companies an offer of settling the debts at a reduced amount as a full and final payment, how badly is this likely to hurt my credit score? Do I tell them where the cash has come from? Has anyone had experience with the companies mentioned above?

Many thanks for bearing with me,
cheers Bob

Gaz83

bobbyd36 wrote: »

Hi,
In the past I got into some credit card debt and after some tooing and froing I agreed to pay a fixed amount to each through what was CCCS at the time. Over a few years the various companies have either merged or bought my debt so that I am down to 5 payments to 4 companies including Robinson Way, Cabot, Marlin and Capitol One. I have kept up the payments at all times initially at the £1 a month and then sharing £260 proportionally between them for over 5 years. I pay no interest.
I recently found out that I actually have an excellent credit score due to keeping paying which came as a surprise.
I hope to sell the property I shared with my ex-wife in the near future and will receive some equity but not enough to settle all the debts in full. They are unaware of the house sale and the proceeds will initially be placed in a family members account.

Eventually I get to the question - if I make the companies an offer of settling the debts at a reduced amount as a full and final payment, how badly is this likely to hurt my credit score? Do I tell them where the cash has come from? Has anyone had experience with the companies mentioned above?

Many thanks for bearing with me,
cheers Bob

You don't have a credit score, so I wouldn't worry too much about it.

Make them an offer, they might accept it, they might not.

bobbyd36

Hi,
What do you mean by not having a credit score?
cheers

DCFC79

bobbyd36 wrote: »

Hi,
What do you mean by not having a credit score?
cheers

Your score is only seen by you and you only, no 1 else can see it.

You might hear lenders have scored you but that's on internal systems and nothing to do with the score from Experian.

Lenders, banks see your history.

Make the offers, they will say if they are too low or what figure they would be willing to accept.

bris

What he means is credit scores are worthless, a way to sell you a subscription to marvel at your greatness.


The real lenders use a different way to lend to you, they look at your history for the last six years and whether your neck deep in credit or not.


A perfect credit score will not help you if you are still up to your neck in debt.


Ps wouldn't it be fraud to hide your windfall? are you not supposed to declare your change in circumstances?

bobbyd36

Thanks for your answers I understand what you mean.

dealer_wins

If you offer a partial settlement expect it to affect your likelihood of obtaining credit for the next 6+ years, and likelihood of getting a mortgage for longer.

Would you lend money to someone who let you down on their repayments, then offered you less than they borrowed from you?

bobbyd36

Thanks for all your replies.

This stuff is really complicated.

I have looked at my Noodle and Equifax credit record and I can only find details of one of the five debts I am paying off. The original defaults were in 2009.
If I settled this one in full and came to a full and final settlement with the others will this do?
Would settling these accounts make them suddenly reappear on the credit record?
cheers again.

BrassicWoman

more importantly have any of them placed a charge on the house?

bobbyd36

Hi, no charge thank goodness.
Having chatted with Stepchange (who helped me with the initial DMP in 2009) I understand that as the original defaults was over 6 years ago no partial settlement details will show.
I also need to check why there is still one showing if over 6 years- is that right?

bobbyd36

Hi,
forgot to say that 3 of the 5 debts I owe are to the same company (Cabot) but only one of the 3 shows on my credit record. Neither of the other 2 show at all.
So if I arrange a F&F settlement for all 5 I will only show one partial payment on the record right?
Thanks again