Full and Final Settlements - Will asking upset my DMP?

harvey180

I was wondering if I could ask some advice from some of the more experienced members.
I’ve been on a DMP for the last 6 years and have cleared 25,000 of a 57,000 debt that I started with. The debts belong to me and my wife.
I’m managing to make the payments fine, however I’m looking at another 8-9 years to clear the remaining 32,000.

All of the original defaults have disappeared off my and my wife’s credit files and ironically I have a relatively good credit rating at the moment. I am trying to gauge if I should apply for full and final settlements for the remaining debts, most of which have been sold onto the agencies below. I was thinking that I could potentially settle the 32,000 for 50 – 70% of what I owe and then add this to my mortgage (ie perhaps 20 – 23k).

I don’t want to upset my DMP by asking for settlement figures from these companies. (Don’t know if this would actually happen). Also don’t know if there is an advantage to even thinking about this. Just know I would feel better if I could clear the DMP completely.

I turned to MSE when we first realised that things had gone too far and can’t recommend the site more, it got me and my family back on track after realising we had been living life the wrong way.
many thanks in advance
Jonathan

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sourcrates

Hi,

I would CCA all relevant accounts first off, they may not be able to supply compliant paperwork.

Hiddenidenity

Why turn unsecured debt into secured debt?

Taking out extra on your mortgage to pay this off isn't a good idea. They aren't on your credit file anymore and you seem to be able to continue paying your dmp. Why not try and save a little and offer a F&F to one debt at a time?

harvey180

sourcrates wrote: »

Hi,

I would CCA all relevant accounts first off, they may not be able to supply compliant paperwork.

Thanks for the pointer. Will read up on this. If they can't supply are the debts not collectable?

harvey180

Hiddenidenity wrote: »

Why turn unsecured debt into secured debt?

Taking out extra on your mortgage to pay this off isn't a good idea. They aren't on your credit file anymore and you seem to be able to continue paying your dmp. Why not try and save a little and offer a F&F to one debt at a time?

Thanks for your reply. Very good point, hadn't thought about the secure/unsecured arrangement. I've always believed that paying off one at a time was not an option while on a DMP. As other creditors don't like not being treated equally. Not sure if this is true or not.

sourcrates

harvey180 wrote: »

Thanks for the pointer. Will read up on this. If they can't supply are the debts not collectable?

Its a bit more complex than that, but in a nutshell, yes, thats correct.

I hope its a free DMP provider you are using, and not a fee charging debt management company ?

harvey180

Thanks again.

With Stepchange, noticed they have template letters for CCA and notifying DCAs that the debts are unenforceable if no CCA.