DAS - DPP (In Scotland) advice

PoorGuyNextDoor

Iv been looking into ways to control my debts better as iv fallen behind with a few of the payments on loans. Im not looking for an easy way out im just finding it a bit much right now as im already behind, with more due this month and my next pay not until August. With a DPP what will happen come December next year when my mortgage renewal is due? If this effects my credit rating will i struggle to find a mortgage and be forced to sell the house i currently have(mortgaged with OH)?

Just on a slippery slope just now was so positive now find myself back worse off than ever.

National_Debtline

Hi there


Yes, being in a Debt Arrangement Scheme debt-payment programme will impact on your ability to obtain a mortgage (or any other credit, for that matter), but your recent missed payments will already have had that effect in any case.


Bear in mind that if it's just the end of a fixed-term deal on your mortgage next December, you may simply be moved on to the lender's standard variable rate until you apply for a new deal. Assuming payments remain reasonably affordable, and that you are not at the very end of the mortgage term, there is no automatic reason that you should have to sell up.


If you are considering DAS, it is best to speak to an approved money adviser as soon as possible and explain your situation so they can advise you on what to consider. There'd be no reason for them to block you getting a new mortgage deal as this would usually be cheaper and free up more money for other debt repayments.


https://www.nationaldebtline.org/S/factsheets/Pages/22%20SCOT%20Debt%20Arrangement%20Scheme%20(DAS)/Default.aspx


Dennis
@natdebtline

PoorGuyNextDoor

How big an impact is it going to have on my credit rating in say 2-3 years if i decide against the dpp and try to get back into the black by say the end of Septemeber(highest earning month of the year so should be able to catch up) As it stands iv got about £100 in my wallet. Im owe £1100 to one bank (that will be what im due come the end of July and £1000 to another. Also owe paypal £1200 but thats another story. So iv got £3,300 to find on top of my usual £1400pcm debt payments, £600 for share of mortgage and household bills then £300 pcm to run my motor and work expenses. Thats a minimum of £2,300 pcm going out.

National_Debtline

Hi again


It's hard to quantify the effect of missed payments on a credit file, as lenders don't advertise their precise criteria. However if you are trying to struggle through to September and expect to get back on track then, it will be better for you if your lenders don't default your accounts in the meantime. Defaults would look worse on your credit file than mere missed or temporarily reduced payments and would take fully six years to drop off.


A lot depends on whether you truly expect September's income to put everything right, or are simply hoping it will, in which case you might find you are delaying that should be taken now. Either way I would get some proper in-depth debt advice from one of the recognised charities, as here we can only really answer questions in isolation.


Dennis
@natdebtline