Will settling DMP early show as default on credit file?

ricster999

Hi
My gf is currently servicing a DMP via Step Change. The debt has come down from £34k to approx £21k and we will soon be in a position to offer them (about 8 lenders) a total settlement of about £7k (ie 33%).

Firstly, does anyone know if this is the right level to pitch it at? We've had a few letters from some debts that have been bought by debt recovery agencies offering a 'significant reduction' if we pay up now but obviously that doesnt mean Citi, MBNA etc have to take our offer. Is it possible we'll need to offer significantly more?

Also if we do settle have we technically defaulted on the debt and how badly damaged will it leave her credit record. Finally how long will it take for her to have a 'clean' credit history after its all paid off? (she wants to apply for a new mortgage as currently on a SVR and cant get anything better).

Lots of questions, appreciate any answers.
Thanks in advance

happy_bunny_2

Check her credit report, as she may have defaulted already.

Defaults stay on for 6 years from default date.

More likely to get offers accepted if debt sold to DCA. Otherwise, may not settle for less than 70-90%.

Are any debts pre April 2007? Then worth CCA request for anything except overdrafts.