Partial settling a default

hylandz

Need some advice on a partial settlement, tried looking into it but getting slightly confused and mixed messages.

Had original debts of £19k around 5 years ago, finally down to £3k

I have 1 default with a balance of £1000, due to fall off my credit score in just over a year, I'm paying £130 a month towards this debt so it will be settled in less than that. I have been offered a partial settlement at £500.

My question is if I partial settle the account now, will the PS negatively affect my credit score for a further 6 years, or will it only affect my score until the magic 6 years on the default is up?

Any advice appreciated.

Willing2Learn

Hi hylandz,

Firstly, well done on reducing that debt right down to just 3k!!

Regarding the partial settlement. When you settle the account, it will still be removed from your file six years from the date of default. So don't worry.

If you wanted to, you could send your creditor a CCA request, just to check they have compliant paperwork. If they don't have compliant paperwork then you can use that as leverage for a lower settlement figure.

hylandz

Thanks for the reply, I'll get in contact with them tomorrow