Starting a debt management plan

bkg79 Forumite Posts: 1 Newbie
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
    MorningcoffeeIV Forumite Posts: 1,296
    1,000 Posts Name Dropper
    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
    sourcrates Forumite, Ambassador Posts: 27,657
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    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.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- The "provit letter" is here-
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