DMP and impact

Maestra

Hi I'm a long time mse user but posting under a new name as no-one knows our situation.

My husband is a year into a stepchange plan paying 660 a month. My father passed away last year and has left a sizeable amount to me.
Are we better to look at paying the debts off in full or offering settlement figures? We'd like to use the money left to be able to buy our own home but as it stands getting a mortgage even with a sizeable deposit would be problematic. So really I'd like to know, what's the best way to get debt free and with a good credit report, IE no defaults, DMP etc...

[Deleted User]

1. Clear your debts ASAP
2. Use a credit card regularly, clearing in full each month
3. Wait 6 years

mwarby

Perhaps you also need to look into why your husband needed DMP in the first place. If it's down to budgeting and overspending issues, the debt paid off with lump sum may just start to build again.

dumpyboy

Pay the debts of as soon as possiable ,get settlement figures if you can but make sure it s writing that the debt is settle and the rest will not be sold on, do not expect things to be normal after six years ,it s better but nearly ten years from starting mine I struggle to get even a current account from some banks

Thrugelmir

If you partially settle with any finance companies. Don't expect them to look favourably on any applications from yourselves in the future. Relationships are 2 way.