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Paying off debts in full
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missionangeluk
Posts: 4 Newbie
Hi
Forgive me if this topic has been raised before.
My partner and I have been on DMP for approx 3 years, we have paid off 19K. Fortunately we are in a position to be able to pay off the remainder of our debt which is 11.5k.
As we have been on a DMP then our credit score has many defaults and late payments so is it worth paying the full amount or trying to get a settlement figure from creditors? I have been reading up on the difference but I getting myself confused (if we already have a low credit score does it matter, or will it still look better that we have paid in full, even though either way it will stay on file for 6yrs)
Our main aim is too try and repair of credit as much as possible and then be able to change our mortgage in approx 4 years.
We both have good salaries so can start to save now and do not need to try and apply for credit for many years (except mortgage)
Any help would be greatly appreciated.
Forgive me if this topic has been raised before.
My partner and I have been on DMP for approx 3 years, we have paid off 19K. Fortunately we are in a position to be able to pay off the remainder of our debt which is 11.5k.
As we have been on a DMP then our credit score has many defaults and late payments so is it worth paying the full amount or trying to get a settlement figure from creditors? I have been reading up on the difference but I getting myself confused (if we already have a low credit score does it matter, or will it still look better that we have paid in full, even though either way it will stay on file for 6yrs)
Our main aim is too try and repair of credit as much as possible and then be able to change our mortgage in approx 4 years.
We both have good salaries so can start to save now and do not need to try and apply for credit for many years (except mortgage)
Any help would be greatly appreciated.
0
Comments
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If you pay in full, the accounts will be marked as satisfied.
If you pay less, marked as partially satisfied. Not quite as good, but still have a default so personally I would rather settle for less and save the rest.
Make sure you get any offers for settlement in writing.:beer:0
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