Confused terminology

Debtbuster73

Hi all,
After trawling the internet for advise, I am very much confused.
I would like to pay off a debt I have with Barclays/ wescote.
Please see letter below.
Which is the best option to take as I read on the internet that both are good
Client: Barclays Bank
Balance: £248.64

We refer to your recent communication requesting a settlement of the outstanding balance.

We can offer you a partial settlement of £124.32 payable in a lump sum. This would mean that the account will be recorded on your credit file as ‘partially settled’, the debt will be closed and your liability settled. Our client agrees not to pursue you for the remaining balance and will not pass on the remaining balance to anyone else to pursue. This information will remain on your credit file for 6 years following the original default date. If you are in a position to repay the full balance your credit file would be recorded as ‘fully satisfied’ for this account.

This debt is approx 3 years old and I can afford to pay either option.

So , pay in full or take the partial option?
Cheers!

BoGoF

Fully satisfied is obviously better than partially settled on your credit file.

jimbo26

Still a default. I doubt that fully settled or partially settled would have a huge impact on furtie lending decision.

Debtbuster73

I have read on the internet that if I go for the partial payment the fault goes back to the original default date. However, if I pay in full the default date is reset to the date I fully settle.
Is this right or am I mistaken?
If this is true maybe the partial option would be best as my credit file would be clear quicker rather than stating at 6 years again.
See my confusion in this?

sourcrates

As above, its the default that does the damage, it makes little difference to anything except your bank balance, how you settle the debt, three years time it will drop off your file for good anyway.


If you want to cut to the chase, fully settled looks better to a potential lender than a partially settled debt, but it only matters if you intend to borrow again in the next 3 years.