Help! Paying off debts early cheaper or not?

stacyjbyrne

Hi please can someone help. I’m wanting to get a mortgage at some point. I’m in a self employed good paying job which I’m happy to remain in but I have about £4500 of debt. Catalogues...credit card...etc. I’ve mmmm half way through the 6years of it being wiped off my credit file from when I last received defaults on them ie 2017.

what my question is when I log onto my Lowell account where most of my debts are held it is offering me 40% off the debts if I set up regular payments. I’m tempted to do it as my debt then drops quite significantly but what would then be shown on my credit file. ???

thats really what I want to try and sort out to be better.....my credit file!

fatbelly

Your question is what would be shown on  your credit file.

If you look at it now,you may see the original lender with a zero balance and a default date. Or you may see a Lowell entry with actual balance and the same default date. You shouldn't see both as they should have agreed who will be reporting, but it does happen.

If you settle at a discount the balance should go to zero and the entry be marked partially settled.

hev3049

fatbelly said:

Your question is what would be shown on  your credit file.

If you look at it now,you may see the original lender with a zero balance and a default date. Or you may see a Lowell entry with actual balance and the same default date. You shouldn't see both as they should have agreed who will be reporting, but it does happen.

If you settle at a discount the balance should go to zero and the entry be marked partially settled.

If both companies are on the credit file (original lender & debt collector) how do you get one of them removed? Thanks

hev3049

Hi, is there anyone that can answer my question please  
If both companies are on the credit file (original lender & debt collector) how do you get one of them removed? Thanks