DMP - Debts not on Credit File

JamesC3

Dear All,
As I posted a month or two back I am on a DMP and was looking at getting Settlement offers on my debts. I had several replies, the best being a 20% full and final settlement discount. A couple of others offered 20% and said they wold be marked as partially settled.
Having phoned one of them up last week - Cabot -, they told me that the debts weren't shown on my credit file, the original companies, Mint and Natwest had marked them as default and they were over 6 years old, so they wouldn't be shown Fully paid off or partially settled as there's nothing on the report for them.
I've now got my statutory credit file and of all the debts on my DMP, the only debt on my credit file is a Santander credit card for £985. I've got approximately £13k in total on the DMP.
My question is, I'm guessing I still have to pay these off? (I mean that's what I have been working towards the last 9 years, so I have no problem with doing that and they are mine so I am responsible for them). As mentioned in a prior post I want to get in a position where I can start saving for a mortgage. I'm guessing (a lot of this at present) that a year or two down the line if I was to sit and ask for a mortgage provider for x amount they would be able to check that I hadn't paid off a DMP, even though I can't see it any evidence of these debts/DMP on the Experian Report I am looking at?

Just wanted some clarification if anyone knows please before I phone StepChange and ask them to negotiate full and final settlement offers on my behalf.

Thanks for any advice

fatbelly

You would get a better deal than stepchange if you want to do that yourself.

If things have dropped off your file, any prospective lender will not be able to see them - unless yu are looking to borrow from the same organisation that had debts in your dmp.

A dmp is an informal solution so does not create a fresh mark of its own - unlike formal solutions DRO, IVA, bankruptcy.

JamesC3

Thanks for the reply. I appreciate it.
I don't know what to do now. I've been given a large sum of money (£7k). I was going to put it in to the DMP to reduce the debts, but as they are not on the  credit file I don't know if to put it in a savings account for the start of a mortgage deposit.

I'm currently paying £430 a month on the DMP

fatbelly

James - I had a look at that other thread and IMHO you had very good advice from Sourcrates, W2L and yours truly

https://forums.moneysavingexpert.com/discussion/6142015/dmp-full-and-final-settlement-offers-diy-or-via-my-dmp

Yes, keep your money in a savings account but, assuming those credit debts did provide a copy of the original agreement, they are fully enforceable and you should persevere with settlement offers. 

80% offers (I think that's what you meant) are not good enough - if you are going to settle 13k debts with your 7k lump sum, you need them to agree to 50%. As Sourcrates says, this is a marathon, not a sprint.

What percentage did you offer in your first letter?

JamesC3

Thank you 'fatbelly'. Yes, thanks for that advice.
I offered all of my creditors 25% of what I owed in my first letter. I will issue some more this week. Thinking of 35%-40%.

Thanks for the updated advice.