We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Paying off debt in a year
TempUsername2307
Posts: 13 Forumite
Hello,
I realise today I owe £7200 which is very !!!!!!. I currently on StepChange DMP of £40 a month. I plan to have frugal year and pay £600 a month on debts so I am free of debt on July 2021. Is this great idea? We will not have lavish expenditure or luxuries but basics. My main motive to do this is to improve credit score. Current score is 200 on Experian which stinks very bad. I wonder if after debts are cleared will this rise or will Experian think hmm he was on DMP let him have 200 credit score for more years to prove his worth?
Please reply with advise thank you very much
I realise today I owe £7200 which is very !!!!!!. I currently on StepChange DMP of £40 a month. I plan to have frugal year and pay £600 a month on debts so I am free of debt on July 2021. Is this great idea? We will not have lavish expenditure or luxuries but basics. My main motive to do this is to improve credit score. Current score is 200 on Experian which stinks very bad. I wonder if after debts are cleared will this rise or will Experian think hmm he was on DMP let him have 200 credit score for more years to prove his worth?
Please reply with advise thank you very much
0
Comments
-
If you have defaults on your file, they stay there for 6 years, whatever you do.
Concentrate on getting debt free and don't worry to much about your score.
Now I have what may be a better plan for you. Continue with your £40 per month dmp. Save £560 per month on the side and use this to make full & final settlement offers. If they are ordinary consumer credit debts and particularly if they are defaulted and/or sold to debt buyers, they'll be open to offers.
https://www.nationaldebtline.org/EW/factsheets/Pages/fullandfinalsettlementoffers/lumpsumoffers.aspx
0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.2K Work, Benefits & Business
- 600.8K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards