Default or satisfied, what's worse on your file?

westie6666

As the title suggests....

We are due to sell our house, and there might be a bit to clear a few debts.

I have a few defaults that are 4 or 5 years old, with Debt Collection Companies.  

When the house sale completes, would making a F&F offer on the debts negatively impact my credit score, more than the default has?

The money we will have won't clear it all, but F&F between 25-33% to the companies should be manageable.

What's the thoughts?

Brie

Presumably you have someplace new to live....rental perhaps?

So you're going to get a lump of money which might clear a portion of your debt - assuming everyone accepts your offer.  They may not.  Where are you going to put the lump sum?  In a bank where you have/had an overdraft and/or a credit card with significant arrears?  

Have you been talking to any of them in the last 4 - 5 years?  Would you be better to hold on and wait out another 2 years to have these drop off your credit history?

Satisfied is always better but either way the defaults will still be visible to a bank etc as they will look at your credit history not your credit score.

fatbelly

westie6666 said:

When the house sale completes, would making a F&F offer on the debts negatively impact my credit score, more than the default has?

What's the thoughts?

The answer to your question is no it would not.

But you are better asking about credit history.

Before you offer to settle these it's worth asking yourself

How close are these to becoming statute barred? I.e. Is it nearly 6 years since they were defaulted and you haven't been paying

Are they being actively pursued or are they just on your credit file?

Have you done cca requests to check they are enforceable?


If you do make an offer, start low, as you will often get the response of a counteroffer, and that's where the negotiation starts.

Don't part with cash until you have the deal in writing