Is It Better To Pay in Full or Pay Less

kessik

Hi everyone 
I didn't pay our water bill and subsequently have a CCJ against me for £3000. I feel very bad because my husband has been included in this even though the water was in my name only. As a result of this his credit card limit has been put down from £7k to £500. So far we've paid UK Search two lots of payments as requested but we now have the money to pay off the whole amount. I spoke to UK Search today and they have said they'll accept £2500. What I don't really get is the difference between 'satisfied' and 'settled in full'. The UKS person said if we pay in full the debt will be shown as 'satisfied' but if we pay £2500 it'll show as 'settled in full' but that sounds the wrong way round to me. And what is the benefit to us if we pay the full amount? Surely the CCJ sits on our credit report for 6 years whatever we do. Just FYI we don't have a mortgage or plan to apply for any credit. Can anyone advise please? I'm speaking to UK Search again tomorrow to let them know what we want to do. Thanks in advance ☺️ 

Mark_d

Satisfied mean they won't pursue it any more.  Settled in full means the matter is completely resolved.

The water bill was a joint expense with your husband, wasn't it?  It shouldn't matter whose name the account is is when you're married.  Not sure why your debt accrued to the amount of £3000 but is it likely to happen in future?

kessik

Mark_d said:

Satisfied mean they won't pursue it any more.  Settled in full means the matter is completely resolved.

The water bill was a joint expense with your husband, wasn't it?  It shouldn't matter whose name the account is is when you're married.  Not sure why your debt accrued to the amount of £3000 but is it likely to happen in future?

It accrued over 6 years. Is it better for us to pay the £2.5k UK Search has said it will accept or pay the whole £3k? Presumably it will stay on our credit files for 6 years whatever we do so is there any advantage to us if we pay the whole amount? That's what I'm trying to work out. Thanks 😊 

sourcrates

The CCJ will sit there for 6 years regardless of what you do, if your not going to be applying for any credit then it doesn't matter how your credit file is marked in relation to this debt.

The difference between settled and partially settled is minimal at best, and of no real consequence in your case anyway.

Settled is when you settle the debt in full, a partial settlement is just that, they have accepted a partial payment to settle the debt once and for all.

Green_hopeful

The debt is against the occupiers of the property regardless of the name on the account. It’s called joint and several liability. It means the water company can pursue both or either of you. 

I assume there are some legal costs in the £3000 but have you looked at reducing your water bills going forward. You don’t want costs to continue to rise. You might be entitled to a discount depending on your circumstances or be able to reduce your costs with a water meter.