We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

IVA or debt management plan?

Which of these would have the least implications on my credit rating in the future?

Comments

  • RAS
    RAS Posts: 33,493 Forumite
    First Anniversary Name Dropper 10 Posts
    An IVA has to be declared for life even though your credit record is cleaned up sooner.

    See the Housing forum right now for someone with a clean credit record but unlikely to get the mortgage they thought was OK becasue they went BR 8 years ago.
    The person who has not made a mistake, has made nothing
  • mildredalien
    mildredalien Posts: 1,057 Forumite
    Combo Breaker Debt-free and Proud! First Anniversary
    A DMP is an informal agreement and won't show up on credit records - defaults of course will (which you will almost certainly have if entering a DMP), but they will drop off after 6 years.
    Savings target: £25000/£25000
    :beer: :T


  • Whether you enter a DMP or an IVA your Credit file will be affected. Defaults will be registered and stay on your credit file for 6years and an IVA will show on your credit file for 6years from the date of acceptance.

    Either way you are looking at 6years
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 345.8K Banking & Borrowing
  • 251K Reduce Debt & Boost Income
  • 451K Spending & Discounts
  • 237.9K Work, Benefits & Business
  • 612.7K Mortgages, Homes & Bills
  • 174.3K Life & Family
  • 251K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.