Stepchange dmp and default debt

col81

I have dmp with £8I outstanding. I read that once the defaults drop off after 6 years that debt cannot be chased. So does that mean I dont have to pay the remaining balance and it wont effect credit going forward?

Willing2Learn

You are thinking about the Statute Barred legislation.

Statute barred debt – common questions

MEM62

col81 said:

I have dmp with £8I outstanding. I read that once the defaults drop off after 6 years that debt cannot be chased. So does that mean I dont have to pay the remaining balance and it wont effect credit going forward?

Whatever you read you failed to understand properly.  You need to refer to the link provided by Willing2Learn  

fatbelly

col81 said:

I have dmp with £8I outstanding. I read that once the defaults drop off after 6 years that debt cannot be chased. So does that mean I dont have to pay the remaining balance and it wont effect credit going forward?

That's not correct. Literally all that happens is that the entry drops off your credit files. 

col81

Ok so I am trying to get a mortgage so the fact my defaults will not show is a bonus but the dmp will still hinder me. Cant win. Will be so glad when it's all gone

Willing2Learn

You can still get a mortgage with defaults on your file.  You can even get a mortgage with a couple of CCJs!

You just need a good, experienced broker.  Some MSE members are mortgage brokers who specialise in adverse data.

Have a look at the board linked below and post a new thread there (with your query).  Lots of people are successful in their mortgage application whilst on a DMP!!

https://forums.moneysavingexpert.com/categories/mortgages-endowments 

col81

Thank you very much!