Difference between satisfied and unsatisfied debts

[thegreenestbear]

Hi there. I defaulted on credit card debts in September 2015. I have since stuck to the repayment plans and have around £12k left to clear.

Following the sale of my house I should be in a position to settle these. Could someone tell me what the benefit is in paying all the outstanding balance in full - recorded as satisfied - as opposed to paying a reduced settlement offer - recorded as partially satisfied - please? TIA x

I wouldn’t bother paying them in full if they’re about to drop off your credit file. Offer ten percent of the current balance and haggle from there. What’s the latest default date?

Better to get some advice from Step Change it Citizens advice

@Yorkshiremummyof1

I wouldn’t bother paying them in full if they’re about to drop off your credit file. Offer ten percent of the current balance and haggle from there. What’s the latest default date?

They only drop off credit files 6 years after final payment.

If you see ‘satisfied’ against any items on your credit report, it indicates that your creditor has marked a default. You may have missed several payments as previously described, but an unexpected advantage is that this entry should disappear from your credit file sooner than the ‘settled’ debt.

It remains for six years, but this timescale begins from the date of default rather than the date when the account is closed. If the creditor accepted an offer of final payment, i.e. less than the full amount owed, again this will be marked as ‘partially satisfied.’

As you can see, missing the occasional loan or credit card payment doesn’t automatically mean that your credit score will be affected, but any diversion from paying your debts in full can damage your ability to obtain credit and other borrowing in the future.