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Coming out of DMP settled vs paid
joe298487
Posts: 30 Forumite
Hello
We have 8.5k left on our DMP we have received a generous gift of 10k from a family member to help us get a house.
I have seen many reports of part settled or settled having a negative affect on your credit file.
we are unsure if we should pay the full amount to the DMP .. We have been told that most creditors will accept 50% of the value.
we could save £4k but then have part settled/ settled on the credit file.
I am after much needed advice as to what to do?
We have 8.5k left on our DMP we have received a generous gift of 10k from a family member to help us get a house.
I have seen many reports of part settled or settled having a negative affect on your credit file.
we are unsure if we should pay the full amount to the DMP .. We have been told that most creditors will accept 50% of the value.
we could save £4k but then have part settled/ settled on the credit file.
I am after much needed advice as to what to do?
0
Comments
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Accept the settlement if they've offered one. The damage is already done by the DMP and defaults.
The important thing is to get them settled and closed.0 -
thanks
we dont have any defaults.. It just says on a dmp.
It was a stupid choice to do DMP in the first place.0 -
Do you mean you've maintained contractual payments on your debts, but did it via a DMP?
What exactly do your three credit files show?0 -
The free versions to check your credit files are below:
Experian: https://www.moneysavingexpert.com/creditclub
Equifax: https://www.clearscore.com
Call Credit: https://www.noddle.co.uk
Check your files. What does it show for your debts on each?
I would be surprised if you have no defaults given that you are on a DMP, unless the DMP is very recent.I'm a Board Guide on the Credit Cards, Loans, Credit Files & Ratings boards. I'm a volunteer to help the boards run smoothly, and I can move and merge threads there. Any views are mine and not the official line of moneysavingexpert.com0 -
DMP is just a polite way of admitting that you cannot meet your contractual commitments and would otherwise default without coming to an arrangement. So from a lending perspective, the damage is already done.0
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To lenders there's little difference.thanks
we dont have any defaults.. It just says on a dmp.
Depends on your circumstances. For some people they're the lifeline they need, for others its actually a worse option than bankruptcy.It was a stupid choice to do DMP in the first place.This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
ok the DMP was with payplan. They agreed a monthly payment which we have paid every month.
our credit file says in DMP but we have a green tick for every month. No late payments , no defaults.0 -
Check all three credit reports.0
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