Full and final settlement advice

kendodebthelp

Hi all!

I’m looking for some advice on making Full & Final settlement offers to my creditors. I currently have around 7 defaults on my credit file, all roughly 5 years old. I’ve been paying them through a StepChange DMP, and for the last few years I’ve been paying around £60 per month (I used to pay £120 before my circumstances changed). At this rate, I’m not due to finish the DMP until 2034, which feels like a very long way off.

I’m starting to think ahead towards hopefully getting a mortgage in the future, and a family member has offered to help me by giving me some money to clear a portion of my debts. It’s not enough to clear everything, but it could make a dent so I’m wondering about making Full & Final offers.

My current balances are:

• PRA Group – £3,623.83

• PRA Group – £1,290.62

• Moorcroft – £943.05

• C.A.R.S Ltd – £242.94

• PRA Group – £168.52

• C.A.R.S Ltd – £20.64

Total owed: £6,228.60

What I’d really like to know is:

1. Would it be realistic to offer around £2,000–£3,000 total as Full & Final settlements and have the creditors accept, given:

   • The age of the defaults

   • My low monthly payment

   • the long remaining DMP term

2. If I settle them as “partially satisfied,” will this reset the defaults or make them stay on my file longer?
   (I’m hoping not, as they should start dropping off soon.)

3. Once the defaults drop off, does a “partially settled” marker cause any issues for mortgages or credit applications in future?
   I’ve read mixed things, so I’m trying to get some clarity.

Any advice or experiences would be massively appreciated. Thanks in advance!