Issues with Debt Management Plan

cannegan

Hi all,

I really hope someone can offer some advice, as I am at my wits end with this issue. My wife and I took out a DMP nearly 4 years ago as we were struggling with unsecured debts of £50000. I can see light at the end of the tunnel as we are down to only £11000 left to pay. When we took it out I am not sure I realised the implications on my credit file. Most of our creditors have been great about the plan, but the Co-op and Tesco are both shown as defaulting on every monthly payment. I have spoken to the co-op and they say this is just their policy, but this effectively shows us as having 4 years of defaulting monthly payments. Obviously this is going to prevent us from having a mortgage for the forseeable future and it is so frustrating when we have worked so hard to pay off such a huge amount of debt. For all the good the DMP has done us I might as well have just stopped paying the Co-op altogether!

So please please please can someone offer us some advice? At the moment my advice to anyone considering a debt management plan would be not to bother! The repurcussions are too vast.

I would be so grateful for any help or suggestions.

Thanks.

fermi

If they originally recorded a default as they are entitled to do if you are on a DMP, then the monthly status on credit reports remains a D or 8 every month after that.

They are not new defaults, but simply status updates on the original default and reflect the fact that the original credit agreement has been ended by the creditor in this case.

So the original default was 4 years ago?

If it is any consolation, the accounts with defaults will completely drop off your credit reports 6 years from the original first default, so perhaps 2 years time.

The accounts that have not been defaulted but presumably show adverse arrears will remain on your credit report to harm it for 6 years after they are settled in the DMP, showing the previous 6 years of arrears for another 6 years to anyone checking.

It is a strange quirk of the system that in the long run it is likely to be those undefaulted accounts that do you the most longer lasting harm.

cannegan

Hi Feremi,

I didn't realise that they were status updates and not new updates! That is indeed some consolation, so thank you so much.

I guess I just need to pay the DMP off as soon as humanly possible. I must admit, I'm almost tempted by expensive lenders just to get rid of these 'bad debts'. Almost.....

Much appreciated.

dumpyboy

Please check the status of your other accounts if yo have 4years of late payment markers or ar markers they are what will haunt you for years after dmp I started in feb 2007 it sort of ended with diffrent agreements in 2012 one defaulted account will be fully paid in September but 2 still on going with ar markers which them on I can not get a current account other then a basic phone contract worked out I suffer the effects for 18 to 20 years from the start it s a long time to be blacklisted even when they have fully gone I expect I will find it s a life long black list so be very weary of a dmp

Thrugelmir

cannegan wrote: »

I guess I just need to pay the DMP off as soon as humanly possible.

Sooner it's gone the sooner you can move on.