Defaults - should I partially satisfy them for a discount?

MillennialDebtor

Hi all,

My credit report is in a real mess thanks to losing my job in 2017, and mix ups with two phone companies in 2015 and 2018. I have four defaults as follows:

10/06/2015 ; £25 ; Three (Sim Card) - SETTLED
25/01/2017; £570; Next (Mail Order) - Payment plan set up
14/02/2017; £558; Pounds2Pocket (Payday Loan)
23/03/2018; £164; O2 (Phone Contract)

I've received many offers through the post to settle these for smaller amounts (up to 50% discount) but they will only be marked as partially satisfied. I can afford to clear them in full, it will just take longer as I'm also working on clearing credit cards with high interest rates as a priority.

Should I clear the defaulted accounts for less, even though they will only be marked as partially satisfied, or take a year or so to settle them in full? I'm hoping to get a mortgage (obviously not from a high street lender) in a couple of years, so what will stand me in better stead?

Many thanks,

MD

[Deleted User]

Settle them with a discount. The default has done the damage, the priority now is to get them settled.

sourcrates

No doubt you will be lambasted by some, for the above advice, but actually it’s the sensible option, the damage has been done now, so get the best deals you can and don’t look back.

PRAISETHESUN

Since you're already stuck with the defaults, having them as "partially satisfied" will be significantly better than them being unsettled, so I'd personally recommend you take the partial settlement option. Not many people will lend to you with a default on your file anyway, so I'd get it settled now and save yourself some money and stress.

MillennialDebtor

Thank you everyone I'll do as you suggest and get them all settled ASAP. Much appreciated.