Posted: Fri Jul 13, 2007 3:05 pm
I have just completed a remortgage of my house in order to pay off my debts and stop making myself so stressed and ill. I went on to a debt management plan two years ago with debts of £14,000 and have managed to pay off nearly £4,000 to date. However, I had a couple of other debts that I kept back at the time and with one thing and another I was left with an additional £8,000 which means I now have a total of £10K with my DMP and £8K outside of them which is why I went for the remortgage option.
The remortgage was quite painless and I will be paying less interest at a lower interest rate than I was on my current mortgage. However, I have only £15K spare but have a total of £18K to pay off debts so I have been considering the full and final payment offer to my creditors. I have looked at various websites and forums and many say to offer about 50%. However, my DMP case manager say I need 80% for them to do the liasing with the creditors in my DMP. The other £8K is for two credit cards that I need to negotiate myself. I have been advised to call these two creditors directly and offer a short settlement.
Does anyone know what is best in this situation and what it will do to my credit rating? I will have a bad rating for the next 4 years anyone from going on a DMP 2 years ago although my remortgage was quite simple. I don't want any more credit but I may change mortgage companies in a few years to get a better rate. At the end of the day I would rather pay them all off at a reduced sum as I don't quite have the full funds and perhaps I will have a little buffer zone in the bank then I don't have to worry any more and will have a fresh start. Should I contact my creditors in the DMP directly to negotiate a final sum or go through my case manager? Any advice would be greatly appreciated.
Thanks
The remortgage was quite painless and I will be paying less interest at a lower interest rate than I was on my current mortgage. However, I have only £15K spare but have a total of £18K to pay off debts so I have been considering the full and final payment offer to my creditors. I have looked at various websites and forums and many say to offer about 50%. However, my DMP case manager say I need 80% for them to do the liasing with the creditors in my DMP. The other £8K is for two credit cards that I need to negotiate myself. I have been advised to call these two creditors directly and offer a short settlement.
Does anyone know what is best in this situation and what it will do to my credit rating? I will have a bad rating for the next 4 years anyone from going on a DMP 2 years ago although my remortgage was quite simple. I don't want any more credit but I may change mortgage companies in a few years to get a better rate. At the end of the day I would rather pay them all off at a reduced sum as I don't quite have the full funds and perhaps I will have a little buffer zone in the bank then I don't have to worry any more and will have a fresh start. Should I contact my creditors in the DMP directly to negotiate a final sum or go through my case manager? Any advice would be greatly appreciated.
Thanks