£25K Unsecured Debt - Options - SOA Included

lixhul

fatbelly said:

Defaults are applied after 3-6 payments that are below the contractual amount, or at least that is the guidance

F&F is shorthand for full & final settlement. When debt buyers buy a defaulted account they pay typically 10p in the £ for it. That gives them the opportunity to negotiate a settlement with the debtor that gives them a profit and the debtor gets the debt dealt with for less than the balance figure. A mark of 'partial settlement' is made on the credit file.

Okay thanks, I'll hold off for a few months to save something up and start a DMP. I would assume the "partial settlment" mark is made when that is paid, so I must wait 6 years from that date, so I am looking at like 7-8 years till I can borrow again?

fatbelly

The entry drops off 6 years after it is defaulted or settled, whichever happens soonest. In the case of a partial settlement there will always be a default first

That's one reason why we recommend starting with non-payment - you get your defaults quickly and then it's six years from that date that your file is clear.

lixhul

Thanks. I'll let them all default first then. Then I'll start a DMP and go from there.

Credit rating is destroyed it is what it is.