Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • theroamingnomad
    • By theroamingnomad 10th Jan 18, 6:50 PM
    • 115Posts
    • 124Thanks
    theroamingnomad
    Question about satisfied vs partially satisfied defaults
    • #1
    • 10th Jan 18, 6:50 PM
    Question about satisfied vs partially satisfied defaults 10th Jan 18 at 6:50 PM
    I have 7 defaults lodged against my credit file between November 2016 and January 2017. The result of a relationship and burying my head in the sand. Fast forward to today and I've been paying down against these debts for the past couple of months.

    The debt total just over £5200 and both DCAs, Lowell and Cabot, have offered me reductions in the total amount payable by 20% to have a current balance that is just over £4100.

    Would it be in my best interests, credit report-wise, to accept this offer? Or should I just continue paying a little longer and settle the entire debt?
Page 1
    • zx81
    • By zx81 10th Jan 18, 7:17 PM
    • 17,250 Posts
    • 18,333 Thanks
    zx81
    • #2
    • 10th Jan 18, 7:17 PM
    • #2
    • 10th Jan 18, 7:17 PM
    The sooner settled, the better it looks to lenders.
    • theroamingnomad
    • By theroamingnomad 10th Jan 18, 7:43 PM
    • 115 Posts
    • 124 Thanks
    theroamingnomad
    • #3
    • 10th Jan 18, 7:43 PM
    • #3
    • 10th Jan 18, 7:43 PM
    Is there a difference between partial and full settlement for the default though? Would they should differently to potential lenders?
    • zx81
    • By zx81 10th Jan 18, 7:45 PM
    • 17,250 Posts
    • 18,333 Thanks
    zx81
    • #4
    • 10th Jan 18, 7:45 PM
    • #4
    • 10th Jan 18, 7:45 PM
    There's a difference - but generally marginal for most lenders.

    I would accept the partial settlement to get it over with and show that you can settle an account in a not too drawn out fashion.
    • theroamingnomad
    • By theroamingnomad 10th Jan 18, 7:55 PM
    • 115 Posts
    • 124 Thanks
    theroamingnomad
    • #5
    • 10th Jan 18, 7:55 PM
    • #5
    • 10th Jan 18, 7:55 PM
    Perfect. I can settle within the next 6 months. That will give me some peace of mind. Thanks for you insight
    • Jade1902
    • By Jade1902 13th Feb 18, 4:52 PM
    • 2 Posts
    • 0 Thanks
    Jade1902
    • #6
    • 13th Feb 18, 4:52 PM
    Partical Settlement on a non defaulted account
    • #6
    • 13th Feb 18, 4:52 PM
    Hi

    My loan account hasnít defaulted with HSBC, Iíve only not paid my account for 4months but have had health issues. HSBC have come up with an offer off Settlement but will go down a partial settlement. How will this affect my credit report? They said they will not default my account either or chase me for the remaining amount of the debt. I also pay all my other lower bills, every month on time and have no other debt.

    How will this affect me and also apply for a mortgage in the future?

    Need helps please guys, look forward to hearing from you.
    • zx81
    • By zx81 13th Feb 18, 4:54 PM
    • 17,250 Posts
    • 18,333 Thanks
    zx81
    • #7
    • 13th Feb 18, 4:54 PM
    • #7
    • 13th Feb 18, 4:54 PM
    If it's not defaulted, I would do everything in my power to avoid a short settlement.

    What is the status of the account on your credit files (all three)?
    • Jade1902
    • By Jade1902 13th Feb 18, 10:17 PM
    • 2 Posts
    • 0 Thanks
    Jade1902
    • #8
    • 13th Feb 18, 10:17 PM
    • #8
    • 13th Feb 18, 10:17 PM
    Thank you for your response. I get so confused by all the different answers on short settlements.

    How come you would avoid short settlement? I spoke to Experian and they said it doesnít affect your scoring, it only may affect lenders lending to you in the future for ie a mortgage. But this doesnít apply to all lenders and some accept a short settlement on accounts.

    I also got told if you donít default then, the short settlement is fine? Iím very confused by all the information I am getting

    I really need some clarification on what will happen.

    On my credit report just says four missed payments that it. There are no defaults on my account and I pay all my other bills.
    • zx81
    • By zx81 13th Feb 18, 10:23 PM
    • 17,250 Posts
    • 18,333 Thanks
    zx81
    • #9
    • 13th Feb 18, 10:23 PM
    • #9
    • 13th Feb 18, 10:23 PM
    Experian's scoring is neither here nor there, because no one cares about what they think.

    4 missed payments and a full settlement suggests you had issues but then settled the agreement in full.

    4 missed payments and a short settlement effectively means you defaulted in the agreement and didn't repay what you owe.

    It's up to you which one you think lenders will find more attractive.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,511Posts Today

8,063Users online

Martin's Twitter