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DMP advice
jones101_2
Posts: 9 Forumite
Hello all,
Need a bit of advice. Basically I am on a DMP with Payplan and have £14000 left. Now after a long drawn out process with the Financial Ombudsman my creditors have agreed to back date some defaults to 2012 (when i started the DMP) which means the 3 outstanding on my file will drop off in the next month or two - great! So my credit rating will look fairly decent and i have 2 current credit cards (marbles, vanquis) with zero balances (paid off each month) which shows some good recent credit history. Now my question is - would it be possible (or even a good idea) to apply for a decent rate loan (once the defaults have gone) for around £7000 and use this as a full and final settlement to Payplan for the old creditors and finally get his DMP finished and 'done' (plus saving some money on avoiding the full outstanding amount). Any advice?
Need a bit of advice. Basically I am on a DMP with Payplan and have £14000 left. Now after a long drawn out process with the Financial Ombudsman my creditors have agreed to back date some defaults to 2012 (when i started the DMP) which means the 3 outstanding on my file will drop off in the next month or two - great! So my credit rating will look fairly decent and i have 2 current credit cards (marbles, vanquis) with zero balances (paid off each month) which shows some good recent credit history. Now my question is - would it be possible (or even a good idea) to apply for a decent rate loan (once the defaults have gone) for around £7000 and use this as a full and final settlement to Payplan for the old creditors and finally get his DMP finished and 'done' (plus saving some money on avoiding the full outstanding amount). Any advice?
0
Comments
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NO, don’t do it, it’s been asked a thousand times, and I still can’t recommend borrowing more money to repay what you already owe.
Why would you even think about such a proposition ?
Are you that keen to get back into debt ?
It’s not a good idea on so many levels.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 -
Clearly it would *not* be a good idea, as yet the process of going through the DMP hasn't done it's job as you're already, without even having paid off the last lot - thinking about how you can sign up for more debt.
Knuckle down, carry on paying, and every time you see the payment going out on your bank account, or wish you had more disposable income, remind yourself that *this* is what debt look and feels like.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
Balance as at 31/08/25 = £ 95,450.00
£100k barrier broken 1/4/25SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
Fair enough. I needed a cold hard response. Will just try and save the 6/7k and see if they accept a lower full and final settlement0
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Fair enough. I needed a cold hard response. Will just try and save the 6/7k and see if they accept a lower full and final settlement
It's fair to say you got two of them.
I promise you we have seen JUST this situation before, and it usually leads, a few years down the line, to the person reappearing with a LOT more debt than they had before.
Well done for taking the replies in the spirit in which they were intended.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
Balance as at 31/08/25 = £ 95,450.00
£100k barrier broken 1/4/25SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
Out of interest (whilst appreciating the advice regarding paying off all debt above) - with the defaults dropping off and a squeaky clean credit report, is a joint mortgage a possibility if still on a DMP? My other half has a property which she will sell (London) with a nice deposit and get a joint one with me. Obvious reasons being cheaper outgoings with a mortgage over expensive rent etc0
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I'd guess it would depend on the lender - and you may be best to go through a broker to access deals for you, but there will be others reading who have more DMP specific knowledge than I do!🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
Balance as at 31/08/25 = £ 95,450.00
£100k barrier broken 1/4/25SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0
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