Will debt management plan with step change affect me getting a mortgage in the future

paulburns1984

Hi all, I've posted before about my current situation and a bit of stupidity on my part has left me finding repaying some of my loans difficult. It was suggested by Lloyds to call stepchange and look into a debt management plan. Now they sound great but would they adversely affect my chances of getting a mortgage in the future? The alternative is breaking my lease (currently due to run until april 2014) and leave my flat to go back and live with parents. This would solve the issues money wise.

Basically how bad would it be for me to use a debt management plan?

fermi

Yes, a DMP would have a significant impact.

If accounts under the DMP are defaulted, then that will significantly harm your ability to get a mortgage for 6 years. Even undefaulted ones will cause harm as there will be arrears listed on the account, which will stay for even longer as they would stay for 6 years from the settlement of the DMP. Plus while under the DMP you would have to declare that you are in an arrangement with your creditors on any application.

See ---> How long will my DMP affect my credit report?

paulburns1984

Thank you, maybe time to think about alternatives