Plan of action (tips welcome)

baikal

Having seen my credit score of 390 i plan to do the following.
Sell my house - move into rented.
Pay off my DMP and any other bits.
Rent for a year will offer 6 months in advance and have no hp ect.
Try and get back into the house market.
Now do you think after a year and having a good deposit I could make it?:o

Tixy

Well it depends what is on your credit report and how old the problems on there are.

How long have you been in your DMP?
How old are any defaults you have got?
If your defaults are fairly recent then even in a year they could happen your chances of a competative mortgage.

Is the principal reason for selling to improve your rating? If so one of the best things for improving it is time.

baikal

I have 2 on a dmp - have been paying for about 11 months.
Never missed any other payments on mortgage ect or the dmp.
I cannot use time alone to clear them, one of the dmps shows me in arrears and they keep giving me a default every month.:mad:
Also i think a clean slate would be most welcome;)

Tixy

The default is actually only put on at a fixed point in time and it stays on for 6years regardless as to whether the debt is not paid at all, partially paid or fully paid. After 6years it will no longer appear on your report.

Each debt can only be defaulted once and that will be shown as the default date (I know what you mean about appearing every month but these are not really defaults, its just to show you are in arrears).

baikal

Thank you for your help.
I understand a little better now.
Thinks I shall sell up and live a normal life for a few years.