Paying off debts

Debtfreeby2025

Hi,
I have £20,000 of debt  (it has gone to a debt collection agency and now being paid off at £400 per month. No interest or charges are being added, just straight repayment until the debt is cleared)
I just got another job to be able to clear it quicker.
my question is…is it better to stick at my £400 a month repayment and put everything I earn in my 2nd job into a savings account and then when I have saved enough, go to the Agency to and see if they will agree a settlement amount or should I just pay the money from the 2nd job straight in to paying it off and repay the full amount even though it might take longer?
which option is better for my credit file? 

sourcrates

Neither, the damage was done by the original default, once that drops off your file, your credit history will start to improve.

The only benefit is that a settlement offer further down the line, may save you some money.

fatbelly

You don't say what the debt was. If is was a normal credit debt like a loan or credit card and particularly if it's been sold to a debt buyer then a full & final settlement is definitely possible so I would put your 2nd income in a savings pot with a view to making an offer in a year or two. 

Debtfreeby2025

Thank you. The debt was a credit card and a loan. So does it drop off my credit file 6 years after the last payment that I make or 6 years after the original default? 

sourcrates

Debtfreeby2025 said:

Thank you. The debt was a credit card and a loan. So does it drop off my credit file 6 years after the last payment that I make or 6 years after the original default? 

Its always the default date when the clock starts ticking down.