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Debt Management Plan i want to pay off
Rjhsteel
Posts: 244 Forumite
Hi all.
A few years ago we got ourselves into problems and currently have a Debt Management Plan with PayPlan.
Our current debt is £18k with a number of creditors.
We now are in a more stable position, and want to pay this off.
Now i've read that you can send letters out asking to pay a percentage off each amount. A full and final payment. But the creditors can leave a partially paid note on the account?
How does that effect your rating?
Can you ask them to not put that on the account when settling the debt?
A few years ago we got ourselves into problems and currently have a Debt Management Plan with PayPlan.
Our current debt is £18k with a number of creditors.
We now are in a more stable position, and want to pay this off.
Now i've read that you can send letters out asking to pay a percentage off each amount. A full and final payment. But the creditors can leave a partially paid note on the account?
How does that effect your rating?
Can you ask them to not put that on the account when settling the debt?
0
Comments
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Hi,
It’s called full and final settlement, which is ever so slightly mis-leading as debts settled in this way are referred to as been partially settled.
Unless you settle a debt, in full, it will always be marked as partially settled.
Usually the damage is done to your credit file already, so how the debt is eventually marked is of little or no consequence.
Search the National Debtline website for a sample letter to make offers to your creditors with.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
sourcrates wrote: »Hi,
It’s called full and final settlement, which is ever so slightly mis-leading as debts settled in this way are referred to as been partially settled.
Unless you settle a debt, in full, it will always be marked as partially settled.
Usually the damage is done to your credit file already, so how the debt is eventually marked is of little or no consequence.
Search the National Debtline website for a sample letter to make offers to your creditors with.
So it doesn’t matter if it’s fully or partially paid off?0 -
So it doesn’t matter if it’s fully or partially paid off?
Not really, it’s the defaults from the debts that harm your credit file.
After 6 years the whole lot disappears anyway, so no one will be any the wiser.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Thanks.
Also read somewhere that you can write to the creditors asking for written proof of the debt and if they don’t have it the debt can be written off?
That true?0 -
sourcrates wrote: »Not really, it’s the defaults from the debts that harm your credit file.
After 6 years the whole lot disappears anyway, so no one will be any the wiser.
Isn’t it better to fully pay of the debt without using the full and final settlement option though?
What I’m saying is, wouldn’t paying off the debt in full be better for my credit rating than the full and final settlement option?0
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