Credit File with Default

wilko15

Hi I entered into a DMP plan 5 years ago for 2 Credit cards and have been continually paying the agreed amount for this period of time. My current credit report shows that I have two accounts on default but I have an excellent credit score of 900+ with Experian. I am aware that these defaults are removed from my credit file after 6 years. Does this enable me to then seek new credit as i am in desperate need of a replacement car. If I am able to clear the balance before then should I. Come next april when the default is removed from my credit file what happens to my credit card balance (interest etc)and do I need to increase my payments or continue to pay what I have been paying. I have been paying through a DMP company which has cost me (£35 per Month) but saved my wife about a third of her balance when we were able to clear the outstanding amount. Do I need to be with a company to negoiate such a deal.

I hope someone can clarify some of these points. Thanks

Tixy

Whilst still on your DMP a condition of the DMP is that you do not take on any more credit commitments, so to comply with the DMP then you shouldn't be applying for credit anywhere until your debts are paid of.

After the defaults drop off your file if the debts are not fully paid then you would usually continue to pay them just the same as before (subject to any increase/decrease as a result of your annual DMP review).

In terms of your DMP provider - people on here would recommend either using a free provider (such as one of the debt advice charities) or doing a self-managed DMP.
If you want to offer reduced sum full & final settlement deals you can do this yourself (useful guide and template letters on national debtline website) or if you were using a charity DMP provider then they will make the offers for you (and not take a cut of the settlement figures).