Short setlement

[Scots]

Looking for some guidance.

 

I have been paying reduced payments to all my creditors for about a year.

 

I have some money available and am looking to pay off my bills in full.

 

I have contacted a few of my creditors and they are willing to accept reduced payments to settle the accounts, various % accepted. I know I am liable for the bills so have no interest in trying to get out of the debt totally, just wondered if I can pay a bit less to get rid of it from their books and my life!

 

The question I have is regarding the credit file.

 

A few of the accounts have defaulted, a few have not.

 

All the creditors state that they will accept the amount as full settlement of the debt but that my file will be marked as partial settlement received. They have confirmed that they would not pursue the rest of the debt and would not sell it off. I am getting all the offers in writing before paying them obviously.

 

What I would like to know is how the partial settlement affects my credit file and how it will be looked upon by any future creditors?

 

All help appreciated.

 

Ta

[Hardupnotfedup]

Partial settlement is a waste of time, your credit file needs to be marked satisfied.

I personally would CCA all your creditors and if the agreements are un-en then the amounts of your offers could be significantly reduced and they may be more willing to play ball.

[Scots]

I am told that the file will be marked satisfied and that it will have a partial settlement received flag on it.

 

If I have this in writing that they will not chase me for any other money and that the account wil be closed.

 

I need to understand the difference on my file between having an account settled and an account satisfied with a partial amount received?

 

Any help appreciated.

[maroondevo52]

Hi,

 

If the partial settlement marker is on the credit file, this will still count against you, as companies will see that you have not honoured a debt in full.

[Scots]

Thanks, I understand that but if I already have defaults on my file then I am pretty much friar tucked for 6 years anyway IMO, or does this part settlement marker make it even worse in reality?

[maroondevo52]

Hi, Know where your coming from, I'm in the same boat, I'm not really sure if it makes it worse or not.

[loobyloo85]

If your creditors have said that they will accept a partial settlement, just ensure that they update your credit file to state that this has been accepted, and that they are no longer going to chase you for these monies. Demand that they update your credit file before you make any form of payment, and dont forget to keep copies of all correspondence to cover your back

 

I have also come across the following site - dont need to pay attention to company involved - just explains more about partial settlement x

 

http://www.debtfreehaven.com/partial-settlement.php