Best Solution For Paying Debt Off With Best Impact On Credit File

hummy

I have a Barclaycard credit debt from quite a few years ago that seems to have been passed onto Linked Financial now for about £3000. 
I've got link Financial chasing me now. So far on my credit file, it doesn't actually show up adversely with an OK Status. But I have been working hard to make my credit file better and don't want this to negatively impact my file. I can pay the entirre thing off - I wouldnt be happy about it, but if it means that my credit file stays in tact that's fine. 
However, I wanted to find out if any of these solutions might work and not adversely impact the credit file. 
1. Make a settlement offer. They will allow me to pay off £1800 for full and final settlement but they will report to credit file as partially settled. 
2. I could pay half the amount due and then pay the rest as monthly installments. 
3. Pay the full balance off, (I have the money but i was hooping to keep it as money for a house deposit, which is the rreason im clearing up my credit file.)

I know 3 is the best option, but are option 1/2 a complete no go?

TIA

Yahoo_Mail

It depends on how you define "best solution."  The "best" in terms of how lenders will view you going forward is to pay it off in full.  However, many lenders won't touch you at all with a default on your file, satisfied or not so "best" might be to go for the partial settlement.

Ultimately, there isn't a hard and fast "best".

hummy

The account isnt in default. But Id like too sort it before it goes into default. So far its reported on a month by month status as OK.

ClioScott

Pay it off in full before they default it, then spend a few months replacing the money for your house deposit.
I'd rather spend a couple of months replacing £3000 in savings than being stuck with a default for 6 years

D3xt3r5L4b

Pay it off. You owe it so pay. 

hummy

D3xt3r5L4b said:

Pay it off. You owe it so pay. 

Thanks! I didn’t say I’m not paying it off. I intend on paying it. Was just wondering the best way to pay it off. 

[Deleted User]

hummy said:

Was just wondering the best way to pay it off. 

In full, as soon as possible.

Anything else is just opting to postpone your mortgage for a few more years.

D3xt3r5L4b

hummy said:

D3xt3r5L4b said:

Pay it off. You owe it so pay. 

Thanks! I didn’t say I’m not paying it off. I intend on paying it. Was just wondering the best way to pay it off. 

Phone up and have your bank card to hand...

rosiesposies

hummy said:

I have a Barclaycard credit debt from quite a few years ago that seems to have been passed onto Linked Financial now for about £3000. 
I've got link Financial chasing me now. So far on my credit file, it doesn't actually show up adversely with an OK Status. But I have been working hard to make my credit file better and don't want this to negatively impact my file. I can pay the entirre thing off - I wouldnt be happy about it, but if it means that my credit file stays in tact that's fine. 
However, I wanted to find out if any of these solutions might work and not adversely impact the credit file. 
1. Make a settlement offer. They will allow me to pay off £1800 for full and final settlement but they will report to credit file as partially settled. 
2. I could pay half the amount due and then pay the rest as monthly installments. 
3. Pay the full balance off, (I have the money but i was hooping to keep it as money for a house deposit, which is the rreason im clearing up my credit file.)

I know 3 is the best option, but are option 1/2 a complete no go?

TIA

It always amazes me when people incurr debt then are not happy to pay it off. Sure, you are paying off interest, but you entered into those terms when you opened the account.
If its not in default you wont have a chance at a reduced figure, so deal with it now while there is no adverse reporting otherwise you are doing as suggested above, pushing your mortgage hopes further away 

hummy

I’m trying to pay it off I never said I’m not happy to pay it off. If you knew the history of the debt maybe you wouldn’t make assumptions. It’s easy to assume. I’m trying to deal with it hence I’m here. No where have I said I’m not going to pay it. I just wanted to know the impact on the credit file. 

( if you want to know th circumstances I actually helped pay for a family members debt who had bailiffs on the door and couldn’t arrange funds from anywhere else. He was going to pay me monthly and after a few payments he’s stopped. So now I have to pay it which I will but it’s a bitter pill to swallow. ) 

D3xt3r5L4b

If it’s someone else’s debt it shouldn’t be on your credit files, regardless of you paying for it.