DMP: Pay in full or settlements?

NatalieanneDFW

Hi everyone, 
Hope your all keeping well. I've posted a couple of times on the mortgage page lately as I want to buy shared ownership with my partner but need to sort my DMP out first! My defaults and ccj are due to drop off my file by March next year thank goodness but I still have 3.5k left to pay on my plan. Money is tight and my mum would have to help to pay the plan off. I just wondered whether it would be an option to make offers of settlements with the creditors? Two are with Moorcroft and the other is with Advantis.
Can anyone advise what the best thing is or there experience with offering settlements? Thank you. 

sourcrates

Hi,
Yes of course you can make settlement offers, the debt with the CCJ though, maybe not.
Moorcroft just manage accounts, so will have to clear any offer with the original creditor.
Advantis I believe are debt buyers, so will have more discretion to knock something off your balance.
Everything should be conducted in writing only, National Debtline provide a helpful template letter just for this purpose, it can be found on their website.

As for what to offer, that’s at your discretion, start at around half of what’s owed, and take it from there.

NatalieanneDFW

sourcrates said:

Hi,
Yes of course you can make settlement offers, the debt with the CCJ though, maybe not.
Moorcroft just manage accounts, so will have to clear any offer with the original creditor.
Advantis I believe are debt buyers, so will have more discretion to knock something off your balance.
Everything should be conducted in writing only, National Debtline provide a helpful template letter just for this purpose, it can be found on their website.

As for what to offer, that’s at your discretion, start at around half of what’s owed, and take it from there.

Thank you, that helps. The CCJ is already paid so that won't be an issue. Would it go down as a failed Debt Management Plan though? That's what I have been told happens if you don't complete it but I don't know how true that is. I have to think very carefully as I wouldn't want anything to go against me when applying for a mortgage.
Thanks again for the advice. 

sourcrates

Debt management plans are not recorded on your credit file, only the defaults or late payments associated with it, as the entries are due to drop off your file next March, it doesn’t matter does it, your accounts will show as partially settled until March when the whole entry disappears.