Partial settlement
Debt, arrears & collectionsA debt settlement where only part of the balance is repaid.
Overview
Partial settlements can be agreed when full repayment is not possible.
Credit files often show a partial settlement marker.
Why it matters
- It resolves the debt but can still impact your credit profile.
- It may be viewed negatively by future lenders.
- It can prevent further collection action.
FAQs
Is a partial settlement better than default?
It can be, but it still indicates the debt was not repaid in full.
Will a partial settlement hurt my score?
It can, because it is recorded as a negative entry.
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