10 year old debt

[Lisa.l85]

Good morning all

i haven’t posted before but I’m after some advice. All my debt is over 10 years old. It’s dropped off my credit rating and been sold on many times. I was on a debt management plan but I’m wanting to buy my first house so just wondered what my options are to get it cleared and ready to buy. I hope that makes sense

[MIKE770]

when did the management plan stop??

[Lisa.l85]

We are still on it currently.

[MIKE770]

OK await response as I have asked for info from site for you?

[Lisa.l85]

Thank you so much. X

[MIKE770]

the weekend so may be quiet on here

[Amethyst]

As you are paying it by Debt Management plan it won't be statute barred, so it will still be collectable once it falls off your credit file. You can continue paying instalments via your DMP ( being aware that the debt owner could take court action at any point if they decide the DMP isn't clearing it fast enough) or you could look at trying to negotiate a full and final settlement to get a line drawn under it so that you know it isn't going to jump up and bite you with a court claim later. You will have to disclose the amount owed when doing your mortgage application and I believe while you are in a DMP you wouldn't be able to get a great deal as there could be affordability concerns.

Have you many other debts in the DMP?

Who is your DMP with ? We're not debt advisers so you may be best trying to get some proper advice on this - national debtline/CAB etc.


(Any F&F negotiation is likely to need to be pro-rate between your creditors included in the DMP )

What you do really depends on your circumstances and the overall situation - it would be best to try and get full and final settlements over the next few months so that you aren't in a DMP when you apply, and don't have outstanding debts to declare.

[Lisa.l85]

Thank you so much for your advice. Do you think it would be possible to get a mortgage that would cover the debt £8900 which includes 75% offers. As I am a council tenant I would get a 36% discount so £60000 deposit.