Full & Final settlement

A question about : Full & Final settlement

I am due a decent bonus from work at the end of February, and am hoping t use it to neogotiate some reduced settlements on my debts.

My question is, by agreeing such things with my creditors how does it affect my credit file, is the debt settled and all defaulft marks removed?

Im asking as im hoping to be debt free by the end of year especailly as hope to settle a few debts by way of FFS, in Feb, and am hoping to get a morgate in a few years time.

Thanks for any advice/help.

Chris

Best answers:

• Your creditors will only consider FFS's if you have been defaulted and they deem it better to get a % back then token payments for long periods of time. If you are making regular payments and your (defaulted) debts will be cleared in a reasonable amount of time (say under 3-5 years) the are unlikely to consider FFS (or perhaps only a small discount).
  Assuming you have defaulted payment and the debts are with DC's or you are only making token payments, your credit file is already shot. Making settlements will have no adverse affect, maybe even a slightly +ve effect.
  If you have not defaulted or broken your credit agreement and are making minimum payments (even if it will take 25 years to clear) etc you will not be considered for a FFS at all.