DMP Advice please

colink24

Hi


I am looking for some advice from you knowledgeable on here!


I am currently in a DMP for debts of £20k to 8 creditors, mainly loans and credit cards. I have been in the DMP for just over a year now, paying £450 a month.


Most of the debts have been sold I think, as Stepchange is paying 3rd parties such as Zinc Group, Pra Group, Lowell Financial etc.


As my DMP runs until 2022, I am starting to think about my options on F&F settlements and the impact it may have if I try to get a mortgage with in the next few years. I did call a few of the third parties but they offered settlements at 95%.


My question really is....if I continue with the DMP, am I more likely to get a mortgage than cancelling my DMP, default on the accounts and try to push the DCA into offering a reasonable F&FS?


Any advice is greatly appreciated.

sourcrates

You cant really talk about offering "full and finals", and then "mortgages" in the same sentence, one does not sit well with the other.

Either option you mention will impact your credit file negatively, so you should do whatever gets your debts cleared the quickest, your accounts must already of defaulted if they are with 3rd party collectors, they stay on your file 6 years from date of default, but arrangement to pay markers can stay for 6 years AFTER you Finnish paying the debt off.

So defaults are the best, worst option.

colink24

Thanks Sourcrates. I did just check my credit report with Clearscore and nearly all the account are in closed (defaulted). The only open account is Lowell, for a small amount. So what would happen if I stopped paying my DMP? The accounts are already defaulted, so how are my payments to the DCA showing on my credit report?


Thanks

sourcrates

colink24 wrote: »

Thanks Sourcrates. I did just check my credit report with Clearscore and nearly all the account are in closed (defaulted). The only open account is Lowell, for a small amount. So what would happen if I stopped paying my DMP? The accounts are already defaulted, so how are my payments to the DCA showing on my credit report?


Thanks

If already defaulted, they will stay like that for 6 years, then drop off your file, regardless of what you do.

Remember a creditor could pursue legal action against you if you stopped paying for too long, its all about getting the balance right between saving for final offers, and been aware of the further action they could take in the meantime.

It is a tried and tested route to take though, saving hard to settle each debt for as little as possible, as and when funds allow, just be aware of any letters before claim.