DMP & credit rating - Debt free wannabe

blondeyk89

Hello all.

I am thinking about entering a DMP with step change, so far I have checked one credit file and can see this:

Vodafone - £1,752.18 - active
IDEM (aqua card) - £399 - defaulted
TMOBILE - £80 - defaulted

Should i check other credit files?

Is it worth entering a DMP? Is this going to affect my credit rating further?
Although it probably couldn't get much worse...

I earn £975 a month and after filling out a budget calculator with step change it says i have surplus money and can afford to pay £84 to Vodafone, £4 to TMobile and £12 to aqua card and would be clear of the debt in just under 2 years.

Do you think this could be a good way forward for me?

Thanks

National_Debtline

Hi

The important thing when applying for credit is how a potential lender interprets the information on your credit file, rather than the actual rating. The rating is a general guide provided by the credit reference agency.

It is worth checking all 3 of the main credit reference files to get the whole picture.

A free DMP with Stepchange is a good option to bring your debt repayments under control. Otherwise you can negotiate yourself if you prefer. Either way, the DMP itself isn’t likely to affect your credit history. It’s more about whether you’ve defaulted on your debts and how you've managed your accounts.

James
@natdebtline

EssexHebridean

Good advice as ever from James above.

Have you done a Statement of Affairs (SOA) yet? You'll find the link to it within the "Sticky" post at the top of this board - if you fill it in (as accurately as you can!) and copy it into here we can take a look and see where there are any savings to be made that you may have missed, if you want?

sarahb7538

A DMP is a good way to bring your debts under control. But one piece of advise that i wish i had been made aware of is.....

If you go down the DMP route make sure every single creditor that is included in your DMP has defaulted your accounts.

That way in six years time you will have a clean slate to start again.

I am in the situation where five of my 6 debtors were defaulted - 7 years into my DMP ( Nearly finished now) there is no record of the five defaulted accounts ( as they drop off after 6 years)

But the account that wasn't defaulted remains on my file, as it was only settled last year it will remain so for another six years and it makes reference to my DMP payments. So in effect I still cant start again with a fresh slate, i still cant get a mortgage and my file will remain wrecked for another six years

So the six years of financial hell, will turn in 12 if i cannot get the FOS to agree that it should have been defaulted as well. Just a tip, don't let it put you off but you need to be aware.