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Is it a good idea to use a loan to partially finally settle a defaulted debt.
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The only way it would be a not bad idea is if you have an offer in your hand today from where you owe saying they will accept a specific reduced amount. Unless you have that cast iron guarantee you are simply moving a debt sideways and probably diagonally in the wrong way as a defaulted debt has no interest but a loan would have huge interest.
The best idea is to save up and pay a settlement figure yourself. You won't face any interest (might even earn a little) and the feeling of accomplishment will be oh so sweet.
Best of luck, I am sure you will achieve your goals. There is lots of advice on these forums and plenty of people who are in, or were in, similar positions.My Debt free diary
https://forums.moneysavingexpert.com/discussion/6492297/10-000-steps-1-step-at-a-time0
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