DMP Question

monday_blues

Hi everyone, this might be a really silly question....but i'll ask it anyway!!!

If married and some joints in my name, some in husbands and one joint loan, could one of us do a DMP but leave the other one continuing as normal, to hopefully minimise the effects on our credit file? Sorry, this may be stupid thinking, but trying to work out our options???

Thanks,

Tixy

Hi

One of you could do a DMP and the other not, if you did this the one not on a DMP would need to pay the joint loan aswell as their debts. This would mean that actually looking at their file it would appear 'good'.
However if you have a joint loan then you will be financially associated on your credit files, and so negative things on one of your files would affect the other and there chance of getting new credit etc.

monday_blues

Thanks for that Tixy, the loan in joint names only has 2 years to go with santander, and is really low interest rate so would be good if we could struggle away until this cleared.

Do you think one doing a DMP would be silly?
Would it mean the other person would have "no chance" or "less chance" of getting credit (just thinking for future if car needed replacing etc). Your thoughts are most appreciated.
Just trying to get to grips with all this and really dont know what way to go for the best!

Tixy

I wouldn't say no chance of getting credit, but certainly less chance (and more chance of it being more expensive if they are accepted). There are definitely plenty of people doing 1 DMP out of a couple, although it obviously works best if you can financially disassociate, which you can only do if no joint loans/mortgage etc

Are you just about managing at the moment? have you spoken to one of the charities about considering a DMP at all?

monday_blues

Thanks, yes we are just about managing at the moment, money been tight for a few years, always maintain payments but getting harder and harder, and less and less disposable income available for the month ahead. It just seems like such a struggle and wonder what it would be like on a DMP, would it be easier! Got a letter today from barclaycard putting credit card interest rate up from 19.9% to 24.9% - crippling, and worried in case this will alter the minimum payments, squeezing us even further - not to mention the added interest and extra time to clear balance off. No easy answers I'm afraid, looking at everything from selling our lovely house and clearing debt, to this DMP thing. Despite maintaining payments on everything, the lenders seem to be making it impossible and I said to the guy on phone tonight that they in danger of us defaulting due to this, He offered a £20 credit into our account to cover a bit of the rise, but not to reduce the interest! Oh dear, what to do?

Tixy

The credit card -are you still using it? if not you can opt out of the rise and that would mean it would stay at the current rate but you couldn't use the card anymore.

Good luck with whatever you decide.

monday_blues

Thanks Tixy I didnt know I could do that. Not using the card so that is a real option for me.

This sure is hard. how to make the right decision which will affect rest of my life....

Tixy

Have a look at this Reject Credit Card Rate Hikes: Fight unfair rate-jacking
They should make it clear you can opt out but I don't think all do.