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I Have Some Debts in the UK. Will Debt Settlement Hurt My Credit? – Nicki

“Dear Jon,

I have a few unsecured debts. i have been offered a reduced settlement on one of them.

Am I better off continuing to pay a small amount each month and paying the full amount owed or accepting the settlement. Which is better for my credit rating, if any?
Thanks for your advice.


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The Answer


It is difficult to say what may be best for you as it will depend on what it is you want to accomplish, besides getting out of debt, and your full situation.

Do you have the funds/money to settle all the debts in question or just the one debt?

How much is the full balance, and what is the settlement being offered?

How many accounts in total do you have?

Can you afford to make the monthly payments on all the debts without settling the one debt?

How quickly do you want to be out of debt?

Sorry for all the questions, but you can see it sometimes is not as easy as just saying yes, or no.

Settling debts is a good way to get the debts paid, and be done with it all. Yes, settling a debt can affect our credit as the debt can be shown as paid, but settled for less than what was owed. But if a settlement is being offered, it usually means the account was in arrears which means you credit has already been impacted by late payments. So settling can be a good way to just be done with it all, but you do need the money to do this.

I hope this helps and get back to me.



I Have Some Debts in the UK. Will Debt Settlement Hurt My Credit?   NickiJon Emge is an experienced UK debt advisor who has helped thousands and thousands of people in the UK to deal with problem debt. Jon specialises in finding good solutions for problem debt using a variety of UK specific techniques.

If you have a question you’d like to ask about how to get out of UK debt, just use the online form. I’m happy to help you for free.

I Have Some Debts in the UK. Will Debt Settlement Hurt My Credit? - Nicki by

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