Historic Defaults & DMP

Tixy

How much longer is the DMP expected to last?

I would switch to a free DMP provider now and have the £36 go to your debts each month, or even consider a self-managed DMP if you feel comfortable enough to do it. See here IMPORTANT - Where to seek professional impartial advice about your debts.

No they have no more ability to get a F&F settlement accepted than you do. In fact less, because they'd be offering the creditor less than you could, due to taking off their fees.

If it comes to making settlement offers, best is to offer an amount you can afford rather than ask for a settlement amount. Some people explain to the creditor that the funds are coming from a relative who will only provide the funds for a full & final settlement.

The other advantage of doing the offers yourself is you can offer one by one as you can afford it. DMP providers generally only offer if you can afford to offer to settlement all the debts in a DMP.

When you are in a position to make offers see here - https://www.nationaldebtline.org/EW/factsheets/Pages/24%20EW%20Full%20and%20final%20settlement%20offers/Default.aspx

lkman

The DMP has about 25 years or something, but of course I'd settle way before then. Ok, thank you for your help. You have really made things much clearer. If I was to offer a settlement figure I wouldn't really know where to start though, i.e. If I owed say 8k on a credit card, what percentage do these firms usually settle for, 25%, 30%, 50% etc.

Tixy

What percentage is always a tricky question as it depends on so many factors.

Generally debt collectors accept lower % than original creditors.
Generally the longer it will take you to pay off at the current rate of payment the lower % they will accept.
They may also consider whether you have assets / whether from what they know of you they think your circumstances are likely to improve / whether they hold all the correct paperwork for the debt etc.

Often people start by offering around 20%-25% of the debt.
I've seen people get 10% accepted in some cases, and others not manage to get a 90% figure accepted.
Always start low with offers as sometimes they'll come back with a counter offer.

lkman

Thank you for your help.