What will be the effect of going DMP?

flossiejo

I'm 'possibly' considering going to Payplan or CCCS and doing a DMP, but I don't fully understand what effect this will have on my credit file.

Can someone pls advise?

Thanks

~Beanie~

If you have a good credit rating, it will ruin it as you will be coming to arrangements with your creditors and not meeting the full minimum repayments.

If you are at the stage when you are considering a DMP though, your credit rating probably isn't good anyway so it probably won't make any difference!

Madison

I entered into one and only two of my eight creditors recorded a default on my credit file and that was because I'd essentially ingored them for a few months. The moral being it's best to act sooner rather than later.

miss_missy

hi flossiejo

when we came to our senses and realised we need to stop the debt we considered dmp we decided not to go that root because although it was taking all our money to pay our debts we had kept up payments and had good credit records and didnt want to ruin this as we knew we would stuggle remortgaging with a trashed credit record

we also were luck that we could with careful budgeting and shuffling debts around afford repay are debts and have been for 3 years now

dmp will ruin your credit file but it depends what its like at the moment and how bad your situation is have you tried posting an soa and getting some advice on here?

DarkConvict

DMP, this is basically where you pool your surplus cash and pay your creditors on an equal and fair pro-rata basis.

If the payment to the creditor is below the minimum contractual payment amount, then you will have considered to have defaulted on the agreement. Generally you get upto 3 months of arrears to put it right.
Anyhow, once the default has happened they may optional, within 6 months of you defaulting report it to the credit reference agencies as a default.
Furthermore, paying below the minimum amount means late payment markers on your file.

Deep_In_Debt

Your credit file will be trashed for the length of your dmp and for 6 years after your last payment as you are breaking the terms of your original agreement with the creditors by payin reduced amounts. but do you really want any credit in the future anyway?

As others have said, if you are not meeting your payments at the moment anyway, it probably won't make a lot of difference.