Should I aim to partially or fully settle my defaulted debt?

Nalf03

About 2 years ago I ran into some money problems and ended up defaulting on a fairly significant debt which now sits with Allied international. I've been paying small monthly payments since then, but I'm finally in a position now where I can think about paying more back in. 

A few months ago I got an email asking to discuss a possible settlement of around 60% of the total. I counter offered 40% which was rejected, and I haven't heard from them since. 

If I understand correctly, since I am paying into it monthly, I am still acknowledging the debt. So even though it should be removed from my credit score in about 4 years, they will still be able to pursue the debt after this time so I still need to pay it off. 

I have cut back as much as I possibly can, but even then it's looking like it'll take about 4 years to fully pay it off (around the same time it's removed from my credit profile). I would be able to save the suggested 60% settlement in half that time, so it would then sit as "partially settled" for 2 years before being removed. 

I have some reservations about pursing this though. I'm not completely sure if the offer is still valid after they rejected my lower offer. I'm also just generally not sure if this is the best way to pursue it or if there is something else I'm missing. There's also the moral part of me saying that I spent the money so I should pay it all back.

TL:DR: is it best to spend the entire length of the rest of the default period paying the whole loan back, or partially settling it in half the time?
Also, will they likely take an offer for a partial settlement after rejecting a lower one?

Thank you.

fatbelly

If you make a settlement offer, it gets rejected and the creditor won't engage further, i recommend giving it 6 months and trying again.

If you want to put a bit more pressure on them, and it is a Consumer Credit Act debt, then do a request (CCA request) and if they can't comply, stop paying.

Rob5342

They'll always be open to an offer, it's just a case of each person trying to get the best they can oit of the other. If they rejected the offer then I'd reduce your payments and try again later.