Debt Mgmt Plan settling & credit rating

geefer1982

Hi,
Looking for a bit of advice if possible...
I have been in a debt mgmt plan for a while & due to a property sale I hope to have enough cash to be able to settle and exit the plan shortly...


The debt mgmt company will contact the creditors to get settlement figures and maybe reduced figures.


What I need to understand is the implications on my credit file / rating if I go for the lower figure rather than the complete settlement figure? How soon with either approach would I be able to start repairing my rating?


The debt mgmt plan has been paid every month correctly and I have had no other issues in the meantime.


Any advice gratefully received.....


thanks

Tixy

Who is your DMP with? if it is with a company that charges you a monthly fee then you would be best making settlements offers yourself (as your DMP company will also take a cut of any settlement). National debtline website has a useful factsheet if you want to arrange your own F&F settlements.


The impact on your credit file will depend on what is on your file currently.
Have you looked at your files? have all your creditors entered a default on your credit file? and if so what are the default dates entered?


If a debt has a default on your file then the whole record of your debt will drop off 6years after the default, whether paid/partially pair or unpaid.

National_Debtline

Thanks Tixy

The settlement offers fact sheet referred to above can be found at

https://www.nationaldebtline.org/EW/factsheets/Pages/24%20EW%20Full%20and%20final%20settlement%20offers/Default.aspx

Regards

Dennis
Twitter: @natdebtline

geefer1982

Many thanks Trixy / Dennis,


I have been using one of the companies that charge the monthly fee to manage the DMP, I know these companies take a bashing but they have been great to deal with (presumably because I have made my payment every month etc) as they gave me piece of mind at a time that I needed it.


I will register with Experian to get the details on the files, I had just presumed that as I was in a DMP my status would be very bad.


Thanks again

glentoran99

Is it Gregory pennington? If so don't go through them with settlement offers, I got a better deal myself than they could get me

Tixy

glentoran99 wrote: »

Is it Gregory pennington? If so don't go through them with settlement offers, I got a better deal myself than they could get me

This seems very common with most commercial DMP providers.

They typically take say 20% of any settlement payments, so not only do you end up paying extra to cover their fee, but also they are not incentivised to get a lower offer accepted, as that would reduce their fee.

glentoran99

Tixy wrote: »

This seems very common with most commercial DMP providers.

They typically take say 20% of any settlement payments, so not only do you end up paying extra to cover their fee, but also they are not incentivised to get a lower offer accepted, as that would reduce their fee.

Dunno if the reason is true but they guy was genuinely amazed when I told him the offers I had accepted he said id be better off myself as he wouldn't be able to get even the same never mind better

geefer1982

Thanks both, I'll def look at that, I had considered doing this myself rather than getting Baines & Ernst to do it, sounds the best plan.