Hi all,
I’m currently on a debt management plan with StepChange and have around £38,000 of unsecured debt spread across four creditors.
I’ve recently got to a point where I could potentially make partial settlement offers to clear these debts, but I’m unsure if it’s actually the right move. From what I understand, partially settled debts still stay on your credit file for six years and are marked as “partially settled” rather than fully satisfied.
My main goal long-term is to rebuild my credit and be in a position where I can access credit again (nothing reckless, just normal financial flexibility). So I’m trying to figure out whether settling these debts now — even partially — actually helps me move forward, or whether it doesn’t make much difference because of how it’s recorded on my credit file.
So I guess my questions are:
Is my understanding correct about partial settlements staying on file for six years?
From a credit rebuilding perspective, is it worth settling these debts early?
Or is there a better strategy I should be considering while on a DMP?
Whats the best way to go about getting credit, with a bunch of partially settled debts on my account? (For credit rebuilding purposes?)
Would really appreciate hearing from anyone who’s been through something similar or understands how lenders tend to view this.
Thanks in advance