Is there anything I can do now???

desperatelyinthered

Hi all, looking for some advice.....

Currently on a DMP with payplan and just wondering if anyone has any ideas on improving my credit rating etc that I can do whilst on a DMP? I am hoping to look at a house move at some point but obviously the way things are at the moment, its not really an option!

I currently meet all my payments and hope to increase the amount I pay on my DMP soon but dont really want to wait 15 years before I move again!

What are your experiences? Am I better at focussing on clearining my debt before moving? Do you think that releasing some equity and offering Full and final settlements is an option or would this not be acceptable as money comes from me and not a 3rd party??

On a completely different subject, I opened a basic bank account when I started DMP as my current account was with same bank as one of my credit cards. At the moment I have not closed the current account (mainly incase I need to write a cheque or use a debit card!) Should I just close it and do without or leave it open in the hope that one day I will be able to use it?

Sorry for all the questions but know you are all full of knowledge!!!!:D

skylight

Unless you need to move urgently, I think you should concentrate on your debts for the time being. There is a lot there to pay back!

You probably have defaults etc on your credit files already and this will not be removed after so short a time.

What you *could* try to do though is perhaps sue your banks/credit cards for the fees and charges back (not interest though)? At least this will reduce your total debts a lot. But you will not be in a position to start to tidy up your credit rating for some time.

Releasing equity may or may not be the best thing for you. That will require a lot of investigation. Bad if you want to move in the future - thats your deposit for the new place you are using and the defaults already obtained remain on your credit file for 6 years I believe.

Its good if you have an awful lot of equity and you can afford to pay back the inflated mortgage payment and NOT ever use a loan or credit card again.

Bad - If you do get another loan/credit card and over spend, plus the extra mortgage payment, you could find yourself in a worse situation than you are now - and only you know if you are truely REALLY strong enough to be able to do that.

If you do decide to go ahead and re-mortgage ONLY go through a reputable broker. DO NOT EVER use one of those companies that advertsie on TV that Mr Martin (Saviour) Lewis hates. He'll kick you off the site if you do! LOL!

CLAPTON

get copies of your credit files from the CRAs.
presumably they will show that you have defaulted on all your debts. these defaults will stay on your file for 6 year (even if you pay them off).


on a DMP it is still possible to get a mortgage...if you are seeking to move your best bet is with your current mortgage provider assuming you have always paid your mortgage on time... if you need to move then speak to your mortgage company otherwise wait until you do need to move.


whether its sensible to 'release ' equity or not all depends upon the detail of your debts, how much equity you have and whether a mortgage company will provide the mortgage and at what cost. F&F setlements are possible but again it depends upon how long ago you defaulted, whether the debts have been sold off (good for F&F) what you are paying now and of course how much you would have to offer.

i see no disadvantge in keeping your bank account open