Clearing debts

mrschar

👋 Hi I am new to the forum so sorry if this is in the wrong place etc.

I have multiple debts with Arrangements in place. I have just received a bit of inheritance and want to clear them off. There are more debts than inheritance so I’ve been asking for partial payments to settle them. I have a few questions 

once settled will they show as settled but the defaults will stay on until the 6 years is up in 2022? 

Nationwide credit cards are being really difficult about the whole thing and won’t reduce it without evidence of inheritance and lists of who I’ve paid which I don’t want to provide. (I am using some of the money to pay back family members I am not sure how they will view that) 

how quickly will my credit improve after clearing these debts or will it only improve after the defaults have passed the 6 years? 

Thanks in advance for your help 

[Deleted User]

The defaults come off 6 years after being applied.

The older the negative markers, the better lenders will see you. It's a gradual process.

Malkytheheed

As above, Your credit worthiness is an analogue scale, with every passing day the impact of a negative marker fades, untill, 6 years later, it's no longer visible.

mrschar

So me clearing them has absolutely no positive effect on the defaults? 

[Deleted User]

It has a very positive effect on the defaults, as they will now be settled.

MovingForwards

Never say the money comes from inheritance as they will think you have more money available than you do or want to part with.

Ask on the debt board how to get full and finals sorted out.

MEM62

mrschar said:

👋 Hi I am new to the forum so sorry if this is in the wrong place etc.

I have multiple debts with Arrangements in place. I have just received a bit of inheritance and want to clear them off. There are more debts than inheritance so I’ve been asking for partial payments to settle them. I have a few questions 

once settled will they show as settled but the defaults will stay on until the 6 years is up in 2022? 

Nationwide credit cards are being really difficult about the whole thing and won’t reduce it without evidence of inheritance and lists of who I’ve paid which I don’t want to provide. (I am using some of the money to pay back family members I am not sure how they will view that) 

how quickly will my credit improve after clearing these debts or will it only improve after the defaults have passed the 6 years? 

Thanks in advance for your help 

You may have shot yourself in the foot letting them know about the inheritance.  Why would you?  You have potentially weakened your negotiating position.  The position should be "I may have help with settling the debts but not sufficient to settle in full"  Then negotiate for an F&F settlement.  

fatbelly

MEM's right - or even just say 'the money is coming from a third party.'

The advantage of settling in full is that you get a settled marker
If you settle at a discount it's 'partially settled'

Nationwide are not keen  on these deals - most other places are fine about some sort of deal.

The other thing to mention is to go in  at lower than you would be prepared to accept, in order to give yourself  some room for negotiation.