Self managed DMP and Mortgages 30 January at 6:00PM in Debt-free wannabe

mick1234_2

Hi,

I'm after a bit of advice, I am currently in a self managed DMP I am paying the minimum payments and I've been in this for about 2 years now. My debt stems from an old relationship and generally having no money and living off credit cards.

I'm in a lucky position now with my job and it pays very well leaving me spare income, I have a small emergency fund of £1000 and I'm building my 3 month pot for job loss  and with the help of YNAB,

I owe

• Capquest - £3936.07 - they have just offered me a settlement of £1574.43 - I wrote to them asking for proof of debt when I started all this and they couldn't find it, since then the debt has been dropping constantly making me offers.

• PRA account 1 - £6087

• PRA account 2 - £6844

• Loan - £8000 this loan has been defaulted for over a 18 months and they still haven't added it to a collection company, I attempted to make lower payments to them and they just said its not affordable that's the last I heard

I'm 45 currently live alone and have a son, the one thing I want to do is buy a house for security for us both not being controlled by landlords etc. that would be great. 

So the questions are if your goal was to buy a house what would you do ?

• Keep paying the minimum on the debt ?

• Clear the debt ?

• Save for a mortgage ?

Apparently you can get a mortgage with a DMP it's all to do with how long the debts have been defaulted in March next year it will be 3 years.

My plan was to save for a deposit a good amount looking at 15% - 20% down and then use my broker ( he said wait another year to get better rates )

thanks for all replies, its a weird situation I'm just trying to do the right thing so I can move forward.