Long DMP v partial settlement

Lauramar89

Hi, advise please

I have a DMP that will last 3 more years.


Some of my debts have never had a late payment or default, some have.


Would I be better paying off the DMP every month, or paying off debts and having a partial settlement?


How badly does a partial settlement affect credit rating.


I may be able to afford to pay some off fully? Perhaps that would be safer?

Sazzie23

Hi Laura

I'm confused easily, so I don't spout a whole load of rubbish, I just want to check I understand your question. I think you are saying you have been in DMP a while, but some of your debts have not been defaulted and don't show any late payments on your credit file? And you are thinking, carrying on with DMP or make some partial F&f (full and final).

Couple of questions, if I've understood properly, are you paying interest on any of these debts? Have the debts been passed to a DCA?

Lauramar89

Thanks for your reply-

Correct! On a DMP at the moment. All interest has been stopped, and only one has been given to a DCA (natwest been given to Robinson way)

Sazzie23

Ok, so if you continue as you are, debts will be paid off fully in 3 years, sounds doable - bit I'm assuming you have access to funds to pay some of the debts off? You could off F&f - the F&f thread will help you here with offers, but I think they suggest offering 25%.

The creditors can choose to accept, or negotiate or reject, but bear in mind that DMP creditors might query where the fund have come from, I.e. Should you still be on DMP if you have the funds. Some people say that a relative has given them some money to pay off xxx debt, this seems to avoid the issue with should you be in DMP.

DCA are more likely to accept a lower offer than an original creditor, and it can depend on the time of the month, how many of their targets have been met as to whether they accept.

How does it affect you credit file ? Have you got defaults? They will stay for 6 years from the date of default no matter what you do. Have you got AP markers or similar, then the account will be markerd paid up and any notice of late payment will stay on file for 6 years from the date of late payment.

If you are still paying DMP, the payments will show as AP or whatever the creditor is recording it as for 6 years from the date of the last payment, but you may find that as your amount owed your payments start to show as up to date, so keep a check on noddle or whatever credit file checker you use, and make the F&f on those still showing something negative.
I'm not an expert on the credit file effect. ! so maybe someone else with more experience can help out.