DMP and Credit File

DancerSupreme

I am trying to find out some information.

My husband has his debts through a DMP and we are currrently saving up any spare cash to pay off each one in turn. We are settling them at a percentage of their full value.

We are planning to buy a house in around 8 years, giving us time to pay off current debts, repair our credit history and increase the size of our family so my drop in salary won't be difficult to live with.

My question is how will this affect his record? Obviously they will show as defaulting but once settled how can we tidy these up.

Thanks all!

hollyjohnson

i am after the same answer, will check this post again to see what response you get

Tixy

Hi

His defaults will stay on his credit file for 6years from the date of default. If you settle before that they will usually show as a settled default for the remainder of the 6years (if you do reduced F&F settlements some creditors will only agree to mark as a partial settlement). But either way settled, partially settled or still outstanding after 6years the defaults will no longer show.

Once he has finished his DMP he will need to gradually start rebuilding his credit rating. This can take a year or so, people usually start with a subprime credit card and then gradually take on a few other other credit agreements items to show they can handle credit to increase the chance that he would get a mortgage.

Hope this answers your question.

DancerSupreme

Thanks Tixy that answers it perfectly. You are a *star*