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What would be the Impact of a Short Settlement on my credit-rating?

I have been on a DMP with Payplan for the last few years and have recently found myself in a position where I can settle my outstanding debts.

Payplan have been negotiating with my creditors on my behalf regarding the required amounts to settle the accounts and the Co-op have said that they will accept £1000 for a 'short settlement' of a £1600 overdraft (regardless of the fact that without their interest and charges, the outstanding balance would be approx £400).

However, I would be willing to pay the £1000 to settle the account, but want to know more about the impact of having that short-settlement logged on my history.
  • If I enter into joint financial arrangements with my fiancee, would this affect her rating?
  • How long will it stay on their for?
  • Finally, what are the chances of me getting a offered a mortgage towards the end of the year with this on my record.
Thanks in advance for any advice.

Regards, Matt

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