Full and final settlement
Debt, arrears & collectionsAn agreement to pay a reduced amount to settle a debt completely.
Overview
Settlements are typically negotiated when a debt is in arrears or default.
The account may be marked as partially settled on your credit file.
Why it matters
- It can resolve an outstanding debt.
- It may still affect your credit profile.
- It can be better than ongoing default.
FAQs
Does a full and final settlement remove a default?
No. The default remains, but the account may be marked as settled.
Should I get the agreement in writing?
Yes. Always confirm settlement terms in writing.
Related terms
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