Opinions on F&F or Full settlement

leighavfc

Hi

My PPI cheque has finally cleared and im looking to start paying my debts off asap. The only thing is i cannot decide weather to pay off in full (which will take upto another 6 months after paying 50% off now) Or do i do F&F's?

I have been on DMP 3 years in January 2017, with my defaults falling between Dec 2013 and April 2014. Id like peoples opinions on what they think the best thing is for me to do.

I want to buy a house ASAP really but obviously this is going to be at the very least 2/3 years away with defaults and having to save for a deposit (have around 10k that my dad has possession of)

National_Debtline

Hi

In general paying the debts off in full would look better to a potential mortgage lender than being partially satisfied, but then for some even having the defaults in the first place may make getting a mortgage more difficult.

If you wait for a few years for the defaults to drop off your credit file completely they will not have any negative impact on mortgage applications, in which case the F+F settlements seem preferable.

James
@natdebtline

leighavfc

National_Debtline wrote: »

Hi

In general paying the debts off in full would look better to a potential mortgage lender than being partially satisfied, but then for some even having the defaults in the first place may make getting a mortgage more difficult.

If you wait for a few years for the defaults to drop off your credit file completely they will not have any negative impact on mortgage applications, in which case the F+F settlements seem preferable.

James
@natdebtline

Hi James

Its a hard decision to make, im smack bang in the middle. 3 years at least until defaults drop off. I realised earlier that many of them havent even defaulted me and unless i can get them to do that then the defaults will have 6 years remaining from date of settlement

Obviously i would like to save as much money as possible when paying them off but then at the same time if i can agree for them to default account then settle in full that would be better. I guess it all comes down to what each creditor wants to play it!!

National_Debtline

Yes, you’re right about the settlement date on the debts that haven’t defaulted. There’s no easy answer I’m afraid.

I think it might be useful for you to discuss the best strategy with a mortgage broker. They could advise on which scenario would give you the best chance of getting a mortgage in future. There is a section of this forum which covers mortgages specifically and I think some of the regular posters actually work as mortgage brokers, so posting in there might help.

James
@natdebtline

leighavfc

Thanks James

Yeah a bit of a sticky situation unfortunately, o well at the very least i will be out of debt soon :j:j

I will take your advice, and speak to a mortgage broker and people on the mortgages forum here.

National_Debtline

I'm not sure whether a broker would charge you so check first. I think the mortgage forum is the best option first of all.

James
@natdebtline