Full and final settlement
Discussion
Hi all
First time posting on here.
I have recently come into some money and want to clear debts. I have 3 credit cards whose combined total is more than the money I have to clear them.
I remember hearing about freeing a full and final settlement a while ago. How does this work? I assume it wld adversely effect your credit rating? As we have recently gone not a variable mortgage we will be wanting to fix again soon so need to protect my rating.
What's the best idea?
Thanks
First time posting on here.
I have recently come into some money and want to clear debts. I have 3 credit cards whose combined total is more than the money I have to clear them.
I remember hearing about freeing a full and final settlement a while ago. How does this work? I assume it wld adversely effect your credit rating? As we have recently gone not a variable mortgage we will be wanting to fix again soon so need to protect my rating.
What's the best idea?
Thanks
Just been to the bank and have been offered a 0% balance transfer.
Which would work.
I don't feel I SHOULDN'T payback my debts, I should. It just pisses me off that the banks offer it to others and I/we are paying for it. Whilst I am struggling I will take advantage of every bit of help I can get!
In 12 months I should be debt free. so thats a result!
Which would work.
I don't feel I SHOULDN'T payback my debts, I should. It just pisses me off that the banks offer it to others and I/we are paying for it. Whilst I am struggling I will take advantage of every bit of help I can get!
In 12 months I should be debt free. so thats a result!
Sealine South said:
Just been to the bank and have been offered a 0% balance transfer.
Which would work.
I don't feel I SHOULDN'T payback my debts, I should. It just pisses me off that the banks offer it to others and I/we are paying for it. Whilst I am struggling I will take advantage of every bit of help I can get!
In 12 months I should be debt free. so thats a result!
Excellent news, having re read my post it came across as a bit arsey, not my intentionWhich would work.
I don't feel I SHOULDN'T payback my debts, I should. It just pisses me off that the banks offer it to others and I/we are paying for it. Whilst I am struggling I will take advantage of every bit of help I can get!
In 12 months I should be debt free. so thats a result!
Have you had any payment problems with the accounts?
In my experience, lenders only accept partial settlements from customers who they think they may never see the full amount from.
If you've never missed a payment, I'd expect them to not enter into negotiation over an account they've not had problems with.
If you were able to come to an agreement, the account will be marked as PS or Partially Settled. It's hard to say exactly what impact that will have as it's not specifically an adverse mark, but it is saying to other lenders that you never fully repaid the amount you borrowed which can't be a good thing for other lenders to see in the future.....
In my experience, lenders only accept partial settlements from customers who they think they may never see the full amount from.
If you've never missed a payment, I'd expect them to not enter into negotiation over an account they've not had problems with.
If you were able to come to an agreement, the account will be marked as PS or Partially Settled. It's hard to say exactly what impact that will have as it's not specifically an adverse mark, but it is saying to other lenders that you never fully repaid the amount you borrowed which can't be a good thing for other lenders to see in the future.....
Full and Final settlements are really a solution to a bad debt / over borrowing problem, and not a cool way to get your creditors to write-off capital / interest in return for a lump sum.
I can't remember how they're recorded on credit files, but it's certainly non-standard / adverse anyway. "partial settlement" rings a bell.
A see the OP has already found a solution, personally I'd try to consolidate the lot onto a 0% transfer and pay off your windfall - use the money you usually pay to service the debt to pay it off before the 0% deal ends - some bright spark like Alvin Hall might suggest putting the windfall into a 'high' yield, no risk investment until days before the 0% deal ends, but I'm of the opinion that the sort of person who run up large balances on multiple cards isn't the sort to have the self-control to leave it there and 'man maths' or some 'emergency' will eat it up - I'm mostly referring to myself here.
I can't remember how they're recorded on credit files, but it's certainly non-standard / adverse anyway. "partial settlement" rings a bell.
A see the OP has already found a solution, personally I'd try to consolidate the lot onto a 0% transfer and pay off your windfall - use the money you usually pay to service the debt to pay it off before the 0% deal ends - some bright spark like Alvin Hall might suggest putting the windfall into a 'high' yield, no risk investment until days before the 0% deal ends, but I'm of the opinion that the sort of person who run up large balances on multiple cards isn't the sort to have the self-control to leave it there and 'man maths' or some 'emergency' will eat it up - I'm mostly referring to myself here.
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