I Got 30% Of My Debt Knocked Off
Part settling debt has been a good tactic I’ve used several times throughout my debt free journey.
The goal is to close the debt without paying the full balance, this seems to work really well for aged debts, debts that have been bought or passed on to debt collection agencies and in this case, it’s PRA group who have been assigned my Lloyds Bank debt.
There are template documents and sample letters to negotiate with debt collection agencies provided by National Debtline, these have been fantastic for me to use and I’ve made good use of them.
Like anything, there are pros and cons when it comes with part settling debt, the debt goes away without going away so to speak.
The debt closes and away goes the recovery action but the debt sits on your credit file as ‘partially settled’
But what does partially settled even mean? To me, nothing, because I understand that defaulted debts sit on your credit file for SIX years, regardless of payment status, whether paid in full, unpaid or part paid, 6 years those defaults will sit there like a wart on your a**e.
I’ve read that if you are trying to impress a lender, a mortgage for example, then it’s better to clear them in full, that way you’re almost telling the lender ‘look I messed up, but i fixed it’ but what if you’re not looking to impress a lender… part settlement for the win.
My debt with PRA group was defaulted in 2019, that means it will sit on my file until 2025, I have no goal to impress a lender before it drops off so for me, part settling has saved me 30% which will then get spent on another debt, win win!
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