£10,000 debt + inheritance. What now?

Matthew32

I am around £10,500+ in debt at this moment in time. Foolish decisions as a teenager means I gained it all rather fast and then have never really been able to afford to pay it back.

I have come into some inheritance money, and it looks like I could pay off *some* of this debt.

Friends of mine tell me that companies may take a lower amount than is owed and just call it quits. Maybe less than half or even as low as a fraction of the debt! How true is this?

Do I need to request that the companies alter my credit file in a certain way?

Thanks in advance!

TL;DR
I'm £10,500 in debt but have just inherited some money. What should I do to make the most out this situation?

DCFC79

Write to each of themy asking if they would accept a full and final settlement or what figure would they accept.

It's true but it probably depends on many factors.

Richey_

Are any of your accounts in default or worse?
If they are not, breaking the original agreement and getting them to settle for less will almost certainly default the accounts meaning it will be difficult to obtain any form of credit for the next 6 years.
If they are not in default, if I was you I would pay off the highest interest debt and then use the spare monies to repay the rest.

Dobbibill

You said you have been unable to pay them back but don't say if you have been making payments every month or if you have been ignoring them altogether.

If you are going to go down this route, please be mindful that they will mark you CR entries as 'partially settled'. This may impact you further down the line if you apply for credit.

If you plan to make arrangements to continue paying the remaining debt, you'll find plenty of advice and support over on the DFW board.

Matthew32

A foolish move, but I have been ignoring them completely.
Multiple are in default as far as I can tell. Will they only ever put "partially settled" or is there a chance to barter with them to put something nicer?

Thanks for advice so far! Definitely some sound advice.

National_Debtline

Hi

It’s pretty much standard practice that creditors mark accounts as ‘partially settled’ where they haven’t been paid off in full. I believe some people on the forum have managed to negotiate having the account shown as fully settled but that is rare.

Remember that your defaulted accounts will no longer show on your credit report 6 years after the initial default date regardless of whether you settle partially or in full.

James
@natdebtline