Taking out a credit card while on a DMP

Clairebear36_2

Thank you everyone for your comments. I had a feeling you would all advise against the credit card. My husband and I are adamant that we want out of this mess and never get into any unnecessary debt again in the future, but you are all right - it is still early days and what if we did need extra cash one month, there was a house emergency etc. I know the temptation would be there to use the card. If it wouldn't greatly improve our credit rating anyway, then there is no point.

We will continue to manage the DMP and have to cross the bridge of remortgaging etc later on.

I'm glad I posted here as I might have gone ahead with a credit card application otherwise! I also didn't realise that it may jeopardise the DMP.

But can I ask ....

We have a few small debts included in the DMP which are literally a £200ish. If we had the money to clear these can we go ahead and do that? This would mean we could then keep our monthly payment the same but more would go to the other bigger debts and everything would get paid off a bit quicker.

My husband can sometimes earn a wee bit of overtime but it's not regular enough to be able to increase the monthly payment. But we would like to put the extra money to good use to pay off a bit of our debt.

Thanks

Clairebear36_2

Poppysmurf:

Sorry just re-read your comment. I don't think you read my original post correctly. I am not looking to move to a nicer area just now, but it is what I would like to do once my DMP is cleared. I was merely concerned at this stage about my credit rating and how it may impact on my me in years to come, long after the DMP is finished. I just wondered if I would do anything just now to help that so I can make positive choices in the future. I want to be able to choose where I live in the future and we are learning a very big life lesson right now with regards to our previous spending.

You don't know the circumstances of my debt or anything about future job prospects, where we would like to move and whether it will be a huge jump in mortgage etc. I appreciate you being honest with me but I don't appreciate you being condescending!

poppasmurf_bewdley

Clairebear36 wrote: »

Poppysmurf:

Sorry just re-read your comment. I don't think you read my original post correctly. I am not looking to move to a nicer area just now, but it is what I would like to do once my DMP is cleared. I was merely concerned at this stage about my credit rating and how it may impact on my me in years to come, long after the DMP is finished. I just wondered if I would do anything just now to help that so I can make positive choices in the future. I want to be able to choose where I live in the future and we are learning a very big life lesson right now with regards to our previous spending.

You don't know the circumstances of my debt or anything about future job prospects, where we would like to move and whether it will be a huge jump in mortgage etc. I appreciate you being honest with me but I don't appreciate you being condescending!

I wasn't being condescending; I was being honest. And from what you have written above, what I said has hit home. Good. I don't do !!!!!-footing around. I say it as I see it. To me, there's no point in trying not to upset someone by telling them the truth when they jolly well need upsetting and told the truth.

Clairebear36_2

My point is ... Your answer alluded to the idea that I was looking to moves right now and take out credit cards willy-nilly!

If I wanted to do that I wouldn't be on here asking for constructive advice from people that have been in similar situations, I would just have applied!

I know exactly how I got to where I am now and I also know what I want for my future. I'm not being deluded or over-ambitious either.

I appreciate people giving me facts and constructive advice, perhaps we will need to agree to disagree but I didn't find your comment constructive one bit! Other people advised about the DMP and the effect do taking extra credit, schooling etc. and that was greatly appreciated. You were condescending!

poppasmurf_bewdley

Ok. So you're not on a DMP, you never mentioned moving house, you aren't up to your neck in debt, and you're not looking to take out another credit card. Anything else I got wrong?

Clairebear36_2

You are clearly not able to give or take constructive criticism, I'm sorry but I'm not willing to go around in circles explaining again and again the reason for my original post. Read it whatever way you will. I am not a stupid person, I admit I have made mistakes in the past but who hasn't? I have got the advice I needed from others and I think if you are going to use your time to contribute to these forums, at least read the info correctly and be helpful not critical of others.

Time_to_face_the_music

Hi Clairebear and welcome to MSE :hello:

Can I suggest you come and join up on the DMP & Mutual Support thread:

https://forums.moneysavingexpert.com/discussion/4437925

Everyone there is either on a DMP or has been in the past. There is no judgement, just solid help, advice, experience and support.

We would love to welcome you there.

TTFTM x

Standingtall

Hi ClaireBear

I took out a credit card out of desperation back in January, the reason being that when I travel with work they will not always accept my works Amex card in India - the last time it happened I had to ask a colleague to pay my hotel bill for me:o

However, on reading my DMP agreement once more (with Payplan) I noted that this was in contravention of the agreement and so cancelled the card - I was leaving my job in any case so was not worried by that point.

Anyway, please be aware that Vanquis would only provide credit of £500 in any case on initial acceptance so this would be unlikely to cover many bills. Additionally if you do decide to improve your rating by taking out such a card I would wait until nearer the end of your plan - at least then if your contract with Payplan was put in jeopardy you would be able to manage the last few months yourself.

Nonetheless, credit is far to tempting - my husband can still get credit as we have no financial associations - it is still way to tempting:mad:

Conclusion - take out the card in the last year or so if you need to although I doubt your credit ratings will be anywhere near good enough for a new mortgage unfortunately, at least not an affordable one:(
Regards
ST

Tixy

Clairebear36 wrote: »

We have a few small debts included in the DMP which are literally a £200ish. If we had the money to clear these can we go ahead and do that? This would mean we could then keep our monthly payment the same but more would go to the other bigger debts and everything would get paid off a bit quicker.

My husband can sometimes earn a wee bit of overtime but it's not regular enough to be able to increase the monthly payment. But we would like to put the extra money to good use to pay off a bit of our debt.

Thanks

Strictly speaking any extra funds should be split to your creditors equally. That said it is fairly common that people will pay off smaller debts, or debts that are prepared to accept a reduced settlement.

Clairebear36_2

Thank you for the invite TTFTM, I've just subscribed to your suggested thread.

Thank you also to Tixy and standing tall, your advice is very much appreciated. At the minute we've no spare cash so will maybe deal with the little debts if we can in the future. Taking the credit card definitely seems like a no-no, I'm so glad I asked the question and didn't do anything silly that could have jeopardised our DMP with payplan