I've got a small DMP from years ago and have nearly paid it off. It was about 8K and is around 2K now.
I noticed my credit rating is pretty good now. I may be able to pay off the rest of the DMP and Payplan have asked did I want to do a full and final settlement for the rest of it.
I have read online that
"If you agree a full and final settlement your creditor will mark the debt as ‘partially settled’ on your credit file. This shows future creditors that the debt was cleared for less than the full amount, and this could affect their decision about whether to lend to you.
The account will be removed from your credit file six years after it was partially settled, or six years after the date it defaulted if this was earlier."
As the DMP was taken out over six years ago it seems it is no longer affecting my credit rating. So, considering the above it seems doing this full and final settlement would not cause further problems. Given it is quite a bit less anyway not sure what to do- offer say half? Or try to pay back in full in case of credit rating problems.
I will maybe ask the advisor at Payplan to check (find them quite helpful) but thought would check here also in case anyone has experience of this. I'm married now and don't want anything to affect DH's credit rating either. Thanks.