Starting a debt management plan

bkg79

Hi there,
Due to getting married, and cost of living, I have got myself a lot of unsecured debt. I have approached stepchange and on the verge of signing a debt management plan. However, do we get default payments on our credit score if the creditors close the accounts during the debt management plan? and if so, how will this affect my mortgage renewal December 2025? I have not missed one payment but the interest rate on the unsecured debt is crippling me.

MorningcoffeeIV

Yes, all your account should default (on your files, not scores). 

It will impact your chances of future credit, but the extent of the damage will depend on the details of your defaults.

sourcrates

Usually when your in debt management, and re-mortgage time comes around, you can take another product with your existing lender without any new credit checks.

Only if you switch lenders are credit checks carried out.

Defaults are a necessary part of a debt management plan, and can`t be avoided, but your re-mortgage should be fine.