Nearing the end of my DMP

Big_Daftie

Sorry if this is in the wrong place, couldn't work out the most appropriate place to put it.

Anyway, been paying into a DMP for the past 5 years and only got ONE payment to go (hallelujah!) :j

Once it's ended, I know my credit rating is going to be abysmal for a while - is there a tried and tested method for starting to improve it?

Angyles

I don't have any advice to give but I just wanted to say Well Done on reaching the end of your DMP :T

DarkConvict

Give the MSE Guide a read - http://www.moneysavingexpert.com/loans/credit-rating-credit-score

Give the BR clean credit file guide a read - https://forums.moneysavingexpert.com/discussion/677875

Basically, you have to wait for alot of things to fall off. 6 years for everything, but 3 years for payment history. By the end of a DMP it should mostly be close to falling off anyway as higher payments mean less failures and defaults are becoming old.

The main thing to do is ensure everything is correct, at the DMP end, get your £2 reports from all 3 agencies and check over the details. Ensure debts/defaults are marked as satisfied. If any defaults have recent dates (not within 6 months of your DMP start date), SAR the creditors to see if they sent out lawful default notices. If defaults are placed unlawfully they must be removed, and defaults need to be placed for fairness (OFT guidenece) within 6 months. So if a creditor placed a default a long way into a DMP it could be struck off the report as been unfair.

Also the guides recommend some cash builder card, like 12 month subscriptions to show you can handle making payments on time, these boost your score a little. But honestly you need to wait for the bad stuff defaults/CCJs to come off.

mamajojo

:T:TCongratulations on getting to the end! Must feel great!:T:T

Big_Daftie

Thanks guys - yep it does feel good. Been a long, hard slog but managed to pay off a LOT of debt while keeping the house, cars and (miraculously) a few ponies.

We didn't have any CCJs against us - brought in CCCS before things got too bad thankfully. Not sure if we have any defaults either, but we will obviously need to get up-to-date reports to see what they show.

~evanesco~

Well done. I'm doing the same thing regarding bringing CCCS in ASAP. My partner lost her job on the 8th June and I knew that we would be unable to meet everything so started on the DMP route within a week. I've now got everything sent off.

I would try to keep everything as clean as possible. Your bank account activity will be recorded on there, and being on the electoral roll helps. I would certainly not get and kind off 'bad' debt again. I'm hoping I learn my lesson this time!

Big_Daftie

Our debt was nearer 6 figures than 4 - I did some major comfort spending after my mum died 6 years ago...had a bl**dy good holiday which is just as well since we've not had another one since.

Hopefully the fact we have managed to pay all the debt off will help others see that no matter how bleak you think the situation is, there is a way out.

mummum2

Well done! happy for you, and all the best for a DF life.:beer:

MM2

bryan8237

hi big daftie, can i ask your advice?

i have about 35000 in unsecured debt, half of this is on low interest life of balance transfers, but i have approx 10,000 on 20-25% pa.half with mbna and half with egg.

i am worried about starting a dmp as it appears i have to stop making payments to my creditors and what they will do.

have you ended up with ccj and did your creditors freeeze interest on your debts.