Posted: Tue Apr 17, 2007 9:26 am
I would just like to know if anyone has information about full and final payments.
I have a meeting this afternoon regarding getting a remortgage to pay off a debt management plan and credit cards that have arisen over the last few years.
I have a house worth approx £120,000 and an interest-only mortgage which stands at £78,000. I have been on a DMP for almost 2 years which now stands at £11,000 but have other debts of £8,000 so a total of £19,000. From preliminary discussions it seems that I may be possible for a remortgage to clear these debts and start again.
To clear the DMP debts of £11,000 should I offer a full and final settlement or is it best to pay off the whole lot? From what I have learnt, a full and final settlement will mean that creditors will show a 'partially satisfied’ on my credit rating wheras a normal full settlement will show ‘fully satisfied’. I am two years into a DMP and either way I will have another four years of black mark against my credit rating whether I pay in full or not.
If I could give a full and final settlement, I may be able to save a couple of grand on a remortgage but will this cause problems for the future? I will know more later today about the remortgage and will have a few days to decide what to do.
Lee
I have a meeting this afternoon regarding getting a remortgage to pay off a debt management plan and credit cards that have arisen over the last few years.
I have a house worth approx £120,000 and an interest-only mortgage which stands at £78,000. I have been on a DMP for almost 2 years which now stands at £11,000 but have other debts of £8,000 so a total of £19,000. From preliminary discussions it seems that I may be possible for a remortgage to clear these debts and start again.
To clear the DMP debts of £11,000 should I offer a full and final settlement or is it best to pay off the whole lot? From what I have learnt, a full and final settlement will mean that creditors will show a 'partially satisfied’ on my credit rating wheras a normal full settlement will show ‘fully satisfied’. I am two years into a DMP and either way I will have another four years of black mark against my credit rating whether I pay in full or not.
If I could give a full and final settlement, I may be able to save a couple of grand on a remortgage but will this cause problems for the future? I will know more later today about the remortgage and will have a few days to decide what to do.
Lee