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  • FIRST POST
    • feekerry
    • By feekerry 9th Jan 18, 8:18 PM
    • 75Posts
    • 26Thanks
    feekerry
    FF settlement on debt not default
    • #1
    • 9th Jan 18, 8:18 PM
    FF settlement on debt not default 9th Jan 18 at 8:18 PM
    Hi

    Iím trying to clear my dmp, I have 2 defaulted debts and 3 that show as up to date but marked DM (debt management) all are with debt collection companies. If I offer and get accepted for a partial settlement, what happens with the 3 that arenít defaulted? I know the defaulted ones would show as partially settled and drop off 6 yrs from default? But what would the others show as and for how long?
    Would they show as partially settled for 6 yrs from the day I made the f and f?
Page 1
    • sourcrates
    • By sourcrates 9th Jan 18, 9:21 PM
    • 14,304 Posts
    • 13,517 Thanks
    sourcrates
    • #2
    • 9th Jan 18, 9:21 PM
    • #2
    • 9th Jan 18, 9:21 PM
    Hi

    Iím trying to clear my dmp, I have 2 defaulted debts and 3 that show as up to date but marked DM (debt management) all are with debt collection companies. If I offer and get accepted for a partial settlement, what happens with the 3 that arenít defaulted? I know the defaulted ones would show as partially settled and drop off 6 yrs from default? But what would the others show as and for how long?
    Would they show as partially settled for 6 yrs from the day I made the f and f?
    Originally posted by feekerry
    Yes partially settled, thatís correct.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
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    • feekerry
    • By feekerry 9th Jan 18, 9:42 PM
    • 75 Posts
    • 26 Thanks
    feekerry
    • #3
    • 9th Jan 18, 9:42 PM
    • #3
    • 9th Jan 18, 9:42 PM
    In that case then would it appear better if the dm marked ones were settled in full? As they will show for 6 years from when I settle?
    Thanks
  • National Debtline
    • #4
    • 10th Jan 18, 9:50 AM
    • #4
    • 10th Jan 18, 9:50 AM
    Hi feekerry,


    The debts will show for 6 years from the default date or settlement date if they have not defaulted. A partially settled debt can be positive and negative to a credit file. It shows that you settled the account (which is good) but that the account was not settled in full (which can be negative). It will not specify how much you paid and this can be an issue for future lenders.

    Whilst fully settled debts would be more positive, I worry this may be hard to do in practice. You need to treat your debts fairly, if you don't this is known as a preference payment and if the debts that receive a partially settlement become aware that you have made a full settlement to other debts, they may refuse to negotiate going forward and/or become more aggressive in taking action.


    If you can pay all of the debts in full then this would be best, but I appreciate that is not always achievable. Best of luck,


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
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