Which Debts to pay
Comments
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Yeah they seemed quite understanding but said only partial settlement and nothing about a default but will check.
Will it not be an issue say having potentially 2 entries on our Credit files that say Partial Settlement though0 -
It'll have an effect, but I don't think a major one - you said your credit history is already not good.
You need to focus on getting debt-free (note name of board) so this is a good step.0 -
Thank You,
Yes I agree, presume it would be different if my Credit Score was good but with the bad stuff on there as you say a partial settlement entry wont make much difference.
Just checking with it being partial I presume it falls off as normal after 6 years and they cannot chase me in the meantime for the rest of the payment after they have accepted partial settlement and I have paid it0 -
New_Guy_2016 wrote: »Thank You,
Yes I agree, presume it would be different if my Credit Score was good but with the bad stuff on there as you say a partial settlement entry wont make much difference.
Just checking with it being partial I presume it falls off as normal after 6 years and they cannot chase me in the meantime for the rest of the payment after they have accepted partial settlement and I have paid it
That's right - entries fall off 6 years after they are defaulted or settled, whichever happens first - partially or fully settled makes no difference.
Their written confirmation of the deal should state clearly that the balance will be written to zero and you not be pursued for the rest.0 -
Their written confirmation of the deal should state clearly that the balance will be written to zero and you not be pursued for the rest.
OP,
This is essential, you must have acceptance of the deal in writing.
One poster this week was been chased for the remainder of a debt he paid off, even though he had there initial acceptance in writing.
There are no ethics in the debt collection business.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
No I agree and know all too well about getting things in writing with the line of work I am in.
I just wanted to make sure what a partial settlement would do as at th moment we would be saving nearly £500 with the partial settlements vs the partial settlements being on our Credit Files.
I have emailed all our other Credit Cards to see what they say so depending on the savings(which would go to paying off or making a good dent in more debts) compared to the amount of partial settlements that would be registered against our file would decide what we do0 -
Okay just to keep the post updated as want to make sure people better experienced than me can chip in what I am doing is wrong.
I have now as said before heard back from my Vanquis card which has a Limit of 2k and is full spent. They have offered me a partial settlement £1762 and lower payments for the next 2 months until I settle in March. The downside is they will mark my Credit Report as Partially settled.
Today i also heard back from my wifes Vanquis which is 2k and at the limit. They have however offered a partial settlement of £862 so a massive reduction and again the only downside being the mark on the credit file. The slight difference with this is it is only valid for 17 days and I cannot make a lump payment until March. They have said the settlement figure would change but at the very least this looks like some sort of discount will be applied for a March partial settlement.
This currently means that potentially the money saved on both could pay off one of my other debts with DFS or the MBNA being the smaller debts. The other option is to pay it into our Evolution 2nd mortgage which could then bring the date for completing that loan come forward.0 -
Okay so it is only a week away before I have the lump sum payment from work in order to pay some debts off.
Just to confirm this is my plan but want to make sure I am not missing a trick:
Payoff
Capital One - Balance -£2,550.00 Monthly Saving -£83
Capital One 2 - Balance - £200.00 Monthly Saving - £7.00
Barclaycard - Balance - £1,200.00 Monthly Saving - £44.00
Vanquis - Balance - £2,000.00 Monthly Saving - £98.00
Aqua - Balance - £1,600.00 Monthly Saving - £80.00
Vanquis - Balance - £2,000.00 Monthly Saving - £50.00
MBNA Credit Card - Balance - £1,500.00 Monthly Saving - £50.00
Tesco Credit Card - Balance - £250.00 Monthly Saving - £10.00
Dorothy Perkins store Card - Balance - £250.00 Monthly Saving - £10.00
Parents Loan £7,582.00 £223.00 - Paying £1,561 off so have 7 months without the payment
Not Paying Off
Very Catalogue £1,500.00 £10.00
Car Loan £9,508.74 £250.23
DFS Furniture Loan £1,263.36 £60.16
Evolution Second Mortgage £21,155.04 £440.73
Barclay 2 £1,200.00 £65.00
IHG Credit Card £5,000.00 £143.000 -
It is very difficult to give accurate advice without the interest rates charged by each debt - the apr. Can you not edit to show this for each debt? For example I am assuming your parents loan is 0% but you are making 7 payments upfront presumably so you can direct the £223 to another debt.
I can see the logic behind you paying off the debts with no fixed repayment term and leaving the loans to run their course but without knowing the rates you are being charged it is impossible to say definitively this is the best use of your lump sum.I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.0 -
enthusiasticsaver wrote: »It is very difficult to give accurate advice without the interest rates charged by each debt - the apr. Can you not edit to show this for each debt? For example I am assuming your parents loan is 0% but you are making 7 payments upfront presumably so you can direct the £223 to another debt.
I can see the logic behind you paying off the debts with no fixed repayment term and leaving the loans to run their course but without knowing the rates you are being charged it is impossible to say definitively this is the best use of your lump sum.
Sorry thought I had stuck the Interest rates on but have added below what I believe them to be
Payoff
Capital One - Balance -£2,550.00 Interest - 2.47%
Capital One 2 - Balance - £200.00 Interest - 1.97%
Barclaycard - Balance - £1,200.00 Interest - 2.21%
Vanquis - Balance - £2,000.00(partial settlement of £1,762) Interest - 3.43%
Aqua - Balance - £1,600.00 Interest - 3.14%
Vanquis - Balance - £2,000.00(partial settlement of £870) Interest - 2.84%
MBNA Credit Card - Balance - £1,500.00 Interest - 1.81%
Tesco Credit Card - Balance - £250.00 Interest - 2.75%
Dorothy Perkins store Card - Balance - £250.00 Interest - 2.84%
Parents Loan £7,582.00 £223.00 - Paying £1,561 off so have 7 months without the payment - Also 0% Interest
Not Paying Off
Very Catalogue £1,500.00 Interest - 2.84%
Car Loan £9,508.74 Interest - Unsure
DFS Furniture Loan £1,263.36 Interest - £4.76
Evolution Second Mortgage £21,155.04 Interest - Unsure
Barclay 2 £1,200.00 interest - 2.21%
IHG Credit Card £5,000.00 Interest - Unsure0
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