Fully or partially settled

Debtfreestudentnurse

I’m in a position to settle some old debts which have defaulted between 3 and 5 years ago.

Is it better to fully settle, or take the settlement offers in terms of future borrowing?

We are wanting a mortgage in the next 18 months and will be looking at adverse lenders due to some defaults being still visible.

Thanks.

Willing2Learn

Hi,

It is the default itself which is toxic. Whether you partially satisfy or fully settle an account does not really matter unfortunately imho.

[Deleted User]

A cleared default looks better than one that’s not.
You’ll still need to see a broker that deals with adverse credit

Debtfreestudentnurse

I understand that, I was just unsure if agreeing to the reduced settlement figure would affect anything, rather than paying the full amount.

[Deleted User]

It would show as partially settled rather than settled.

Debtfreestudentnurse

Thanks for clarifying! ����

Debtfreestudentnurse

If I pay it off, will it still drop off the account when the 6 years since default are up?

[Deleted User]

Yes from the date the default was applied

Debtfreestudentnurse

Brill, thank you!