How long does the DMP show on your file

victoria270385

Hi,

I am just wondering whether the "black mark" is against my file from the moment i enter into a debt management plan or from the moment i finish it. I know things like this stay on your account for 5-6 years but after being debt free in about 4-5 years i will want to get a mortgage, so I am just wondering whether it will be another 5 years after i am debt free before i can get a mortgage etc.

Any advice would be grately apprecited.

Jinx

Hi Victoria

Its not the debt management plan as such that trashes your file - its the defaults. So if you default on a loan, credit card etc that breaks your agreement with the company - they normally then 'default' you. This is usually a few months after you stop paying the full amount and your account is passed to a debt collecting agency and starts the clock. It then takes 6 years in England and 5 in Scotland from the default date to drop off your file. So you will be debt free before your credit file is 'clear'. So if you want a clear file before applying for a mortgage you will have to wait about a year after being debt free - hope this helps.

victoria270385

brilliant, thanks for your reply