Advice required

scottygees

Default Advice needed.
Basically I have been on a DMP for a while now and though it still has a way to go before it ends a lot of the defaults on my credit report are due to fall off in the next 9 months. This would then show only £3000 of debt on my file. I was hoping to try and settle this amount in the way of a full and final offer.

Once these have been settled would that mean I would then be in a position to apply for future credit so I could try and offer F & F offers to the other creditors on the DMP that will no longer be showing on my credit report?

thanks in advance

Rich7111

The debts will stop showing on your credit report 6 years from the default date, so yeah, go ahead, try and get a full and final settlement on them, this will save you money. Just don't stop paying them, just because they stop showing doesn't mean they are over, if you do that, you risk a CCJ and a further 6 years of crap credit.

Of course, once the defaults drop off your credit rating will improve, however, you won't go to excellent over night, it takes time, are you using a credit building credit card now? That's your aim really.

sourcrates

So you want to get further credit to repay debt you already have ?

Have I got that right ?

Why would you ever think this was a good idea ?

Just because debts fall off your credit file, in no way diminishes your liability to pay them.

Just pay your DMP as you have been doing or save the money up, do not even think about borrowing your way out of debt, have you not learned anything ?

scottygees

I fully get where you are coming from but was looking at a way of clearing the bad debt( I know all debt is bad) and giving me a fresh start where I can comfortably afford to repay any future lending. I suppose it is just a state of mind thing where I won't feel the burden of having these bad debts and the potential threat of court action hanging over me. One of the reasons I asked was because I had a Full and final offer made to me which was less than 50% and thought this may be a viable thing to consider.

sourcrates wrote: »

So you want to get further credit to repay debt you already have ?

Have I got that right ?

Why would you ever think this was a good idea ?

Just because debts fall off your credit file, in no way diminishes your liability to pay them.

Just pay your DMP as you have been doing or save the money up, do not even think about borrowing your way out of debt, have you not learned anything ?

sourcrates

Most debt collectors will offer you discounts off the balance, that you can then continue to repay monthly.
Lowell regularly offer these deals, try asking.

Don't take out new borrowing it's a really bad idea.

scottygees

Thanks for the reply. Nothing ventured nothing gained. Would you suggest a particular way of requesting this. I.e explain my DMP won't be finished until a particular date, but if they were prepared to reduce the balance but still accept the current DMP arrangement it could be cleared sooner. I am hoping they will see that they will be waiting a lot longer for the debt to be cleared if current balances and DMP arrangement are maintained. Any further advice would be greatly appreciated.

QUOTE=sourcrates;72249875]Most debt collectors will offer you discounts off the balance, that you can then continue to repay monthly.
Lowell regularly offer these deals, try asking.

Don't take out new borrowing it's a really bad idea.[/QUOTE]