Effect of final settlement on credit file

macca5000

Hi there,

I've just come to the end of the first year of a DMP with the CCCS (FYI - I could not recommend them more highly).

I started out owing just under £15k and over the past year I've managed to get it down to nearer £12.

There is a potential I may be able to settle another £2500 with a full and final settlement to one of the creditors, after managing to get back some money from my ex partner owed me.

Does anyone know the long term effect of having a settlement on your credit file? Obviously my credit file is in ruins after recieving numerous defaults as part of the DMP.

Can a full and final settlement make it any worse?

lxpeanut

It wont make it worse. It will probably be marked as a short settlement but while your on the DMP it will be marked as in arrears so settled is better.