Paying off creditors

farquarpigmix

Hi everyone,

Trying to negotiate paying of my debts. Been warned that they may offer a discount but then sell outstanding balance to another creditor?

Some are saying that on my credit file it will say "partial paid off" Am worried about this. Any advice please.

[Deleted User]

Depends on whether they agree it is a final settlement or not.

You want it to be.

farquarpigmix

Deleted_User wrote: »

Depends on whether they agree it is a final settlement or not.

You want it to be.

All they will say on the phone is "partial paid off" On our credit file.

[Deleted User]

As long as it is settled - ie they won't pursue you for the remainder - that's ok.

glentoran99

farquarpigmix wrote: »

All they will say on the phone is "partial paid off" On our credit file.

You need it in writing or don't be paying anything

Anthorn

farquarpigmix wrote: »

Hi everyone,

Trying to negotiate paying of my debts. Been warned that they may offer a discount but then sell outstanding balance to another creditor?

Some are saying that on my credit file it will say "partial paid off" Am worried about this. Any advice please.

I have a mixed response to the "Partially Paid" status: On the one hand it shows you could not pay off the whole amount you owe but on the other hand it shows you made an offer which the creditor found to be acceptable. In any event "Partially Paid" looks better than "Default".

farquarpigmix

Anthorn wrote: »

I have a mixed response to the "Partially Paid" status: On the one hand it shows you could not pay off the whole amount you owe but on the other hand it shows you made an offer which the creditor found to be acceptable. In any event "Partially Paid" looks better than "Default".

But in the end I need Full & Final payment.

boo_star

farquarpigmix wrote: »

But in the end I need Full & Final payment.

You'll only get a full and final settlement if you pay in full. If you don't pay in full then reporting it as fully paid would be an innacurate representation of the debt.

Some may be willing to report it as such to settle but if they're not, just ensure it is marked as settled.

PixelPound

If they offer a discount to settle the account, it should show "partially satisfied" on your credit file but they shouldn't sell on your account for the rest of the amount (as you have made a settlement). You need to get it in writing and ensure it will settle and close the account.

Anthorn

farquarpigmix wrote: »

But in the end I need Full & Final payment.

If you can get it and whatever you get, get it in writing.

Looking back to 2008 Fredrickson (for Lowell) offered me a facility to make an immediate partial payment which amounted to half of what I owed and they wouldn't pursue me for the rest. I got it in writing and accepted it and they honoured the agreement but as it happened I paid off the whole debt anyway.

While not ideal partial payment at the least can give you something of a breather and a break from never-ending demands and there is nothing to stop you paying more if you want to.

But as I said, get it in writing.

sourcrates

Hi,

The phrase "full and final settlement" is a little misleading, and often leads to posts such as yours.

What it should be called is simply "partial final settlement", where you receive a discount off the outstanding balance, to clear the debt once and for all.

Your credit file will show it's been partially settled, which is correct.

National Debtline have a template letter for just this purpose :

https://www.nationaldebtline.org/EW/sampleletters/Pages/Full-and-final-settlement-offers-%28sole-name%29.aspx

They too use the same contentious phrasing.