New Year, New start

June2019 · 13 December 2019 at 10:31AM

So I am currently on a DMP with Stepchange and paying an amount each month and have a debt free date of 2035, , , , my question is if I contact each of the companies I owe on my list and agree settlement offers and set up payment plan with them separately and manage to clear the debt quicker, so in effect paying them more than they are currently getting, will this affect my credit score / rating in a negative way??

I currently have a credit score / rating which suprisingly is in the Fair section - the goal is to get that into the Good and clear the debt in the best way I can, ideally the quickest way - I just feel the current situation with my DMP is just keeping my head above water but I dont want to be doing this each month for the next 15 years

Any help / advice / answer to my question at all will be so appreciated

sourcrates · 13 December 2019 at 11:29AM

Hi,

Your goal is slightly flawed unfortunatly, your credit score is not seen by anyone except you, and it is not used in lending decisions, so its a pointless number really, it has a marginal relationship to how you service your credit accounts, but should not be taken as an indication of your credit worthyness.

I does not matter how you repay your debts, if an account defaults, it defaults, regardless of how long your repayment method may take, anything less than the full contracted payment will attract either arrangement to pay markers or defaults, at the creditor discretion.

June2019 · 13 December 2019 at 12:14PM

Many thanks for the reply

Surely getting a decent credit score can only be a good thing if it can be done right?

Take for example wanting to rent a property - and if I had a good credit score that would mean I wouldn't fail a credit check??

sourcrates · 13 December 2019 at 2:23PM

June2019 wrote: »

my question is if I contact each of the companies I owe on my list and agree settlement offers and set up payment plan with them separately and manage to clear the debt quicker, so in effect paying them more than they are currently getting, will this affect my credit score / rating in a negative way??

The answer to your question is no.

One has no effect whatsoever on the other, as i said, you either pay the original contracted repayment, or you don`t.

Anything other than the full contracted repayment will cause your account to either be marked as "arrangement to pay" or the account will default, any kind of debt mangement will have similar results.

If you want to preserve your credit record, you must pay the full contracted repayment, or more, every month when requested, anything else will result in one of the above.

New Year, New start

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