Struggling with debt? Ask a debt advisor a question

mum2one

7171blondie wrote: »

hi

im struggling with debt that i cannot pay... ive been in touch regarding a dmp, i can start straight away...
i was wondering about my credit, i have always had good credit, how will a dmp affect my credit & how long would it be on my credit file ?
just worried incase me & hubby split up & i need to rent a house for myself & my two children in the future
thanks

At least you have made the hardest step and thats look for help, my DMP didn't take long to set up, if you can get all the paperwork ready that will help, mine took about a week to set up,

As for your credit rating, - of you have missed any payments or made reduced payments they will affect your credit rating, and also a DMP will affect it as shows as not minimum payments being made, - it will take time for your credit rating to clear, - it depends on your debts and length of the term, although someone from CCCS will be able to be more informative. xx

StepChange_Pavan

7171blondie wrote: »

hi

im struggling with debt that i cannot pay... ive been in touch regarding a dmp, i can start straight away...
i was wondering about my credit, i have always had good credit, how will a dmp affect my credit & how long would it be on my credit file ?
just worried incase me & hubby split up & i need to rent a house for myself & my two children in the future
thanks

Hi there and thanks for your post.

Try not to worry; if you need to rent a new place you may have the option to save for a larger deposit or have a guarantor to back you up if your credit rating isn’t the best. The good thing is that DMPs are flexible so if you could pay less towards your creditors while you save for a deposit.

A DMP will affect your credit rating as you’re offering reduced payments and you’ll default against the original agreement. Anything that goes on your credit file will remain for 6 years.

It’s best not to worry too much about something that might not happen but if you want to talk through your concerns just give us a call. If you had to move out and rent on your own it’s likely that your situation will change as a whole and we could look at your options again to make sure that a DMP is still the best solution for you.

I hope this helps.

Kind regards,

Pavan

boots234

I have organised my own debt payments from 2006 with the various companies without debt agencies..

My question is can i contact them to wipe the rest of the debt as i have been paying for 6 years now and want to end the payments. Were do i stand with the law...

mum2one

boots234 wrote: »

I have organised my own debt payments from 2006 with the various companies without debt agencies..

My question is can i contact them to wipe the rest of the debt as i have been paying for 6 years now and want to end the payments. Were do i stand with the law...

unfortunatly whilst its a nice thought, you wouldn't be allowed to do it,

budgetminder

Step 1: Make a list of everything you owe
Step 2: Put your debts in order of importance
Step 3: Create a personal Monthly Budget Statement
Step 4: Get independent advice on how to deal with your debts
Step 5: Keep in regular contact with your creditors

System

boots234 wrote: »

I have organised my own debt payments from 2006 with the various companies without debt agencies..

My question is can i contact them to wipe the rest of the debt as i have been paying for 6 years now and want to end the payments. Were do i stand with the law...

Hello,

Thanks for posting. Mum2one is right on this one, legally speaking your creditors are entitled to ask for all of their money back. In practice, some creditors are willing to write debts off if you are suffering from very bad health or other exceptional circumstances.

The other ways to get debt written off are things like bankruptcy and DROs. You can also get some of your debts written off through an IVA, but only after an agreement has been agreed with your debts and you have paid the amount you set up with them (so unfortunately your last 6 years of payments would not count on an IVA).

If you would like to see if any of these options are a good idea you might want to try our online advice tool, Debt Remedy (http://www.cccs.co.uk/ref/drcu), which can give you customised and impartial advice based on your actual situation.

Hope this helps.

Mat

System

budgetminder wrote: »

Step 1: Make a list of everything you owe
Step 2: Put your debts in order of importance
Step 3: Create a personal Monthly Budget Statement
Step 4: Get independent advice on how to deal with your debts
Step 5: Keep in regular contact with your creditors

Very sensible suggestions here budgetminder, thanks for posting.

Jibb

This is my first time posting so I hope I am in the right place?

After a weird break up 6 years ago I was left with some dept and didn't really feel in a position to do anything about it. So I buried my head in the sand and ignored the letters... not the thing to do I know but it felt like the only option at the time. Three years ago friends let me rent their flat. I got myself back on track. Embraced my financial situation and made agreements with the credit card and bank I owed money to and although it hasn't been free of ups and downs I am pleased to say I only have one £839 dept outstanding which I continue to pay on a monthly basis.

I now predict another bump in the road. My friends have just informed me of their intentions to sell the flat. There are lots of flats out there that I can afford and would happily live in but I am scared of paying a £200 pound holding fee and £100 fee for a credit check if the result comes back negative and I loss £300. I have looked at my own credit report and it shows 3 defaults. One of the defaults I settled and it just shows as closed, the other which I have paid in full shows an SF next to it and the third shows that I am still paying it off. The other three things shown all have an OK next to them. The bit that confuses me is the credit score section. I seem to have few: one for lenders which is 440-447 depending on the agency and the landlord/employer sections is 764 other scores read as Postcode 860 Application 567.

Would my scores and credit history allow me to privately rent a flat through an agency?

I apologies for this post turning into an epic but I really appreciate any advice anyone can offer me as I can't really afford to gamble with £300.

Thanks again.

StepChange_James

Jibb wrote: »

This is my first time posting so I hope I am in the right place?

After a weird break up 6 years ago I was left with some dept and didn't really feel in a position to do anything about it. So I buried my head in the sand and ignored the letters... not the thing to do I know but it felt like the only option at the time. Three years ago friends let me rent their flat. I got myself back on track. Embraced my financial situation and made agreements with the credit card and bank I owed money to and although it hasn't been free of ups and downs I am pleased to say I only have one £839 dept outstanding which I continue to pay on a monthly basis.

I now predict another bump in the road. My friends have just informed me of their intentions to sell the flat. There are lots of flats out there that I can afford and would happily live in but I am scared of paying a £200 pound holding fee and £100 fee for a credit check if the result comes back negative and I loss £300. I have looked at my own credit report and it shows 3 defaults. One of the defaults I settled and it just shows as closed, the other which I have paid in full shows an SF next to it and the third shows that I am still paying it off. The other three things shown all have an OK next to them. The bit that confuses me is the credit score section. I seem to have few: one for lenders which is 440-447 depending on the agency and the landlord/employer sections is 764 other scores read as Postcode 860 Application 567.

Would my scores and credit history allow me to privately rent a flat through an agency?

I apologies for this post turning into an epic but I really appreciate any advice anyone can offer me as I can't really afford to gamble with £300.

Thanks again.

Hello,

Thanks for posting and welcome to the forum, you have posted in the right place.

Credit scores given about by the credit reference agencies are given as a guide more than anything, they are just to give you an idea of how you compare to other people. Ultimately it is down to the person you are applying to if they want to let you rent a property or offer you credit.

If you don’t pass a credit check then most letting agents will try to find other options. This can be something like a bigger deposit or asking someone with a good credit rating to act as a guarantor.

There are also landlords that don’t do formal credit checks, usually ones that advertise themselves rather than through a letting agent.

The fact that two of your default notices have been updated to show you have sorted the debts out should count in your favour, but it would be impossible to say whether you would pass a credit check for a rental property.

It is worth mentioning that other factors usually go into these sorts of applications, such as having a reference from your current landlord, your income and sometimes even if the landlord thinks you look trustworthy.

Hope this helps and good luck with your house hunt.


James

Jibb

Thank you James you have given me the boost I need to go for it!