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  • FIRST POST
    • joe298487
    • By joe298487 8th Feb 18, 1:45 PM
    • 19Posts
    • 1Thanks
    joe298487
    Coming out of DMP settled vs paid
    • #1
    • 8th Feb 18, 1:45 PM
    Coming out of DMP settled vs paid 8th Feb 18 at 1:45 PM
    Hello

    We have 8.5k left on our DMP we have received a generous gift of 10k from a family member to help us get a house.

    I have seen many reports of part settled or settled having a negative affect on your credit file.

    we are unsure if we should pay the full amount to the DMP .. We have been told that most creditors will accept 50% of the value.

    we could save £4k but then have part settled/ settled on the credit file.

    I am after much needed advice as to what to do?
Page 1
    • zx81
    • By zx81 8th Feb 18, 1:49 PM
    • 15,501 Posts
    • 16,440 Thanks
    zx81
    • #2
    • 8th Feb 18, 1:49 PM
    • #2
    • 8th Feb 18, 1:49 PM
    Accept the settlement if they've offered one. The damage is already done by the DMP and defaults.

    The important thing is to get them settled and closed.
    • joe298487
    • By joe298487 8th Feb 18, 1:50 PM
    • 19 Posts
    • 1 Thanks
    joe298487
    • #3
    • 8th Feb 18, 1:50 PM
    • #3
    • 8th Feb 18, 1:50 PM
    thanks

    we dont have any defaults.. It just says on a dmp.

    It was a stupid choice to do DMP in the first place.
    • zx81
    • By zx81 8th Feb 18, 1:53 PM
    • 15,501 Posts
    • 16,440 Thanks
    zx81
    • #4
    • 8th Feb 18, 1:53 PM
    • #4
    • 8th Feb 18, 1:53 PM
    Do you mean you've maintained contractual payments on your debts, but did it via a DMP?

    What exactly do your three credit files show?
    • Candyapple
    • By Candyapple 8th Feb 18, 1:54 PM
    • 2,652 Posts
    • 1,991 Thanks
    Candyapple
    • #5
    • 8th Feb 18, 1:54 PM
    • #5
    • 8th Feb 18, 1:54 PM
    The free versions to check your credit files are below:
    Experian: www.moneysavingexpert.com/creditclub
    Equifax: www.clearscore.com
    Call Credit: www.noddle.co.uk

    Check your files. What does it show for your debts on each?

    I would be surprised if you have no defaults given that you are on a DMP, unless the DMP is very recent.
    I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com
    • Brock_and_Roll
    • By Brock_and_Roll 8th Feb 18, 2:08 PM
    • 789 Posts
    • 761 Thanks
    Brock_and_Roll
    • #6
    • 8th Feb 18, 2:08 PM
    • #6
    • 8th Feb 18, 2:08 PM
    DMP is just a polite way of admitting that you cannot meet your contractual commitments and would otherwise default without coming to an arrangement. So from a lending perspective, the damage is already done.
    • Tarambor
    • By Tarambor 8th Feb 18, 2:32 PM
    • 2,219 Posts
    • 1,599 Thanks
    Tarambor
    • #7
    • 8th Feb 18, 2:32 PM
    • #7
    • 8th Feb 18, 2:32 PM
    thanks

    we dont have any defaults.. It just says on a dmp.
    Originally posted by joe298487
    To lenders there's little difference.
    It was a stupid choice to do DMP in the first place.
    Depends on your circumstances. For some people they're the lifeline they need, for others its actually a worse option than bankruptcy.
    • joe298487
    • By joe298487 8th Feb 18, 5:13 PM
    • 19 Posts
    • 1 Thanks
    joe298487
    • #8
    • 8th Feb 18, 5:13 PM
    • #8
    • 8th Feb 18, 5:13 PM
    ok the DMP was with payplan. They agreed a monthly payment which we have paid every month.

    our credit file says in DMP but we have a green tick for every month. No late payments , no defaults.
    • zx81
    • By zx81 8th Feb 18, 5:26 PM
    • 15,501 Posts
    • 16,440 Thanks
    zx81
    • #9
    • 8th Feb 18, 5:26 PM
    • #9
    • 8th Feb 18, 5:26 PM
    Check all three credit reports.
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