Debt management plan

Sunflower75

Hello

I'm looking for some advice on where I am at the moment. 6 years ago my marriage broke down and my husband and I divorced. I was struggling to manage the credit card and loan bills as well as all the living expenses such as my rent, utility bills etc as well as supporting my daughter who is now in her final year of secondary school.

I entered into a debt management plan with a company back in 2009 to manage my debt and this has helped me to keep afloat. Thanks to MSE I was successful in claiming back mis-sold PPI on a bank loan, thus reducing my debt even further and leaving a manageable amount to pay back to my creditors via the debt management plan.

I have been reading about how to repair bad credit and wonder whether someone in my position could be eligible or would I need my debt plan to be fully completed? I don't want to do anything that could further damage my future credit or perhaps my future credit is already bad and irreparable. I have done the eligibility test on MSE to see what my chances are of applying for a bad credit credit card and some come back with an 80% chance. Is now the chance to apply or should I wait until my debt management plan has run its course.

Any advice would be greatly appreciated.

Thank you so much in advance...

Tixy

Hi

How much longer is your DMP predicted to last?

It is usually specifically agains the terms of a DMP to apply for further credit whilst on the DMP. The danger being that one of your creditors sees that you are applying for new credit and then decides they will no longer accept your DMP payments or will start charging interest again etc.

That said some people on these forums do take out a subprime credit card a few months before the end of their DMP to start trying to build up a positive credit history.

DevCoder

Most DMP's don't allow you to take on new forms of credit whilst they are running.

What does yours say about that?

Sunflower75

Thank you Tixy and krisdorey for your replies. Much appreciated. My plan has approximately 3 years to run. I think that I will refrain from applying for any further credit until the plan has run its course. Thank you again.