How to settle dmp

feekerry

I have remortgaged and released some funds to repay some debt. I have contacted step change and they were going to contact my creditors to get settlement figures. However, since then, one of the creditors has written to me offering a reduced settlement figure.. 30% less. It’s the biggest creditor so quite a chunk. So, do I send the full amount outstanding to step change and get them to pay off everything in full, or do I do it myself and accept the reduced offer and do the same with the rest?
Would this put me in a difficult situation with StepChange or anything? Would it adversely affect my credit rating?

sourcrates

If you have the cash to hand, stop your DMP (as you no longer need it) then negotiate a settlement with each creditor, do everything in writing, and make sure you have conformation in writing that the amount you pay will settle your outstanding obligation, and you will not be chased for the remainder, before you part with a single penny.

Credit will be trashed anyway.

National_Debtline

Hi feekerry


If StepChange are going to negotiate the full & final settlement on your debts, it's best to speak to them first. You need to treat all your creditors fairly and to split the lump sum of money you have available proportionally between them.


If you were to accept a 30% reduction on this debt, but then ask other creditors to give you a larger discount then they could be more likely to refuse as it would not seem fair to them.


Most creditors will mark your credit file as partially satisfied after making a full & final settlement. But bear in mind if your creditors already registered a default, the debt will drop off 6 years after that anyway.


Susie
@natdebtline