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Settled Vs paid in full debt

1 reply

Ablooo · 01/08/2022 09:21

I have unfortunately found myself in quite a bit of debt. It's mounted up to a point where over several cards it's now £250/£300 a month to repay the minimum payment each month. That said doing this is having zero impact on the accounts and its incredibly hard to get them to come down.

I have taken a small loan out to cover the 5 out of 6 debts. It's a much more manageable repayment each month and will stop the interest growing on the accounts I have outstanding.

My question is if I ring the creditors and request an early settlement rather than pay in full will it have a bad impact moving forward? My credit score isn't fantastic so I would like to prevent from harming it too much but ultimately I want to clear most if not all of my debt in one go.

Has anyone done this and found it's not as bad and still managed to get credit in years to come?

OP posts:
AdInfinitum12 · 01/08/2022 09:23

If you're currently paying the minimum monthly payment they have no incentive to agree an early settlement. Usually this only happens when you've defaulted and can't pay or are paying a tiny token amount.

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