To Settle in Full or Partial

dfw9162

Hello There,

I can’t quite get my head round the matter of settling old defaults and would welcome advice, please. :undecided

In 2008/9 I defaulted on several accounts, with the bank & credit cards. In total the amount to about £25k, across six accounts. I have agreements in place (no formal IFA, DMPs etc.) and have been quietly paying a nominal amount £1.00pcm each. I know these are no longer showing on my Credit Score, but I have continued to pay the nominal amount.

Thing may be improving next year :j (more than 10 years after etc.), and I may be able to settle these.

Therefore, I am trying to decide whether to settle in full or to offer a reducing settlement.

A. If I settle in full, say next May; will they reappear as ‘settled’ on my credit Score?
B. If I settle for an agreed partial amount, say next May; will they reappear as ‘partly settled’ on my credit Score?
C. Or settle either way, and it will NOT appear on my credit score at all?

Any thoughts guidance would be most welcome.

Many thanks :beer:

PixelPound

Defaults fall off after 6 years irrespective whether they have been settled, partially, fully, or not at all. Partial settlements will be marked as such but if they are due to fall off soon then it will save money doing a partial and remove risk of further action from not paying. So none of these should be on your credit file now, so getting a settlement figure will allow you to get rid of the debt for less.

dfw9162

Thanks nic_c,

I got them in 2008. So 2012 they started to fall off; therefore, so I should be good!

I will go for partial and save some money!


Many thanks