Dmp/ Sell House Or Final Settlement

murphy2

Hi looking fro some advice, I started a Dmp with CCCs two years ago runs until 2018 eek! (Owe £64k) this was a lifesaver and has been running fine. But we recently had our first child and this has really refocused me in getting debt free. So I have been looking at the following options.

• We recently had our house valued and iacn basically sell up and pay back everything in full and still have some money left as a deposit on another place and be debt free now. !! But I would need a mortgage which My parents said they would act as guarantors for. Not sure how this would work though. ?

• I can (long shot) borrow 50k from parents and offer all creditors a final settlement figure.

I basically iam not sure if I should just let the DMP run or try one of the above options to clear my credit rating ASAP. I know it’s completely stuffed but does anyone know how long it would take to improve using one of the above rather than running the full course of may Dmp bearing in mind it s 10 years.

Any ideas , I am going to call CCCs and ask but just looking for options .

thanks

rayday2

Even if you paid everything off your history is still there so your mortgage payments if you can get one with the credit crunch going on would be terrible interest rates.

I could sell up tomorrow and pay all my debts and mortgage off and come out about 10k up, but I have fought so long to stay here I am not budging. Each month that goes by I owe a little less and save a little more.

But it is your personal choice and how much the house means to you, the future could hold better jobs and your DMP could run shorter, thats the problem with life we just do not know!

murphy2

rayday2

House means a lot to us and like you have fought damn hard to stay here. But i am now thinking its only a house .If i can use it to improve my life then so be it.

Still trying to get through to CCCs they are so busy tho.

The real thrust of my post was how long does it take to clear your credit rating after a DMP is complete???

compulsivespender79

murphy2 wrote: »

The real thrust of my post was how long does it take to clear your credit rating after a DMP is complete???

Hi Murphy,

And the answer is six years. Provided that during the time of your DMP you haven't taken out any other credit and let that go awry.
I think were I in that position I would be sorely tempted to sell up and pay everything off. BUT the credit crunch is happening. I heard of one bank yesterday cutting thousands of its customers' overdrafts, and EGG have cancelled 160,000 of its custumers' credit cards. Your credit rating will presumably already be in a bit of a mess, so a new mortgage right now really wouldn't be the best idea, or actually affordable.
I would (given time to think about it rationally) stay where I am. You have a good home, a loving family, and are on a DMP that you can afford. I know that you would like your credit rating to be good now, but in all honestly what do you really need more credit for?
Pre-MSE i used to be a huge risk-taker, and would have sold up like a shot, but I really don't believe that that's the sensible option.
Having said all that, it really is just my opinion. But please, have a good think about it before you sign anything!

CS x