Out of the debt closet

rich_by_name_only

Hello everyone. Up until now I have only lurked on this board and think it is a fantastic and supportive resource. I get great positives just from reading how people have improved their lives by reducing their debt.

I have been hiding my debts from my wife and came clean over the weekend. Not surprisingly she went ballistic, but a huge weight was lifted once I'd let my pressure cooker of a head release itself. Now for the hard work which I'm totally committed to achieving. I'll be posting my SOA as soon as I've collated the figures.

Before posting this, I'd done some homework on the options available to me and a DMP seems to be the way forward having weighed up all the pros and cons. I have one question though. By me having a DMP against my name, will my wife's credit rating be affected because she obviously lives at the same address as me?

Two questions actually. Having completed my DMP, how long would it take to get my own credit rating back (no credit cards, am cutting them up today). Am thinking more along the lines of when/if we decide to move house in the future.

Thanks in advance.
Rich

Tixy

Hi and welcome

Glad you have spoken to your wife about your debts, whilst I am sure she was shocked it is definitely easier to tackle them if you are both aware and on board with making changes.

In relation to your wife's credit report, it depends if you have an joint financial products (such as a joint loan, mortgage or current account with overdraft). If you do you will be financially associated and your credit file will affect hers. If not then she will not be affected (just living at the same address is not an issue).

If its possible (say if you only have a joint overdraft) it can be worth changing this so its in her name only and then applying to have yourselves 'financially disassociated' with the 3 credit reference agencies. Obviously if you have a joint mortgage you are unlikely to be able to take this course of action.

With regards to how soon your credit file will improve that will depend on your situation and what your creditors do. It can take 6years after the completion of your DMP, however what often happens is that you start your DMP, around 3-6months later your creditors put a default on your credit file. Now this default will stay on your file for 6years from the date it went on (regardless of whether its paid or not after 6years) so sometimes people may be on a DMP that takes 10years but when they finish their credit file is already looking not too bad. That said even one the credit file shows no bad credit markers you then need to start building up a good credit score to get the best credit products available.

Do post up your SoA when you get chance. And hopefully you know from lurking to use a free DMP provider, not one who charges fees.

Good Luck.

rich_by_name_only

thank you for the kind words and advice.

much appreciated.