DMP question on potential worse situation if DMP doesn't work out

[Deleted User]

sourcrates said:

BDeluxe said:

Thanks for all the advice so far, one more question....

If I go into a DMP how is it going affect my wife's credit rating? I've talked to her about my plans and she is terrified it's going to affect her squeaky clean record to the point she will not be supportive if it affects her. I'm not sure how I'm supposed to move forward if it's going to be a problem.

If you have a joint mortgage, then unfortunately your financial behaviour will be linked, so defaults etc will have some effect on her credit file, there is no avoiding that.

The thing is, this will happen anyway, regardless of what you do, if you can`t meet your financial obligations, your credit file will reflect this, and so will hers, so how you both deal with that is a matter between the two of you.

The situation will not last forever, after 6 years, negative information is removed.

But it won’t affect her at all so long as she does not seek further credit - am I correct? Just trying to provide some reassurance for the op as this is clearly a difficult moment for him. 

sourcrates

[Deleted User] said:

sourcrates said:

BDeluxe said:

Thanks for all the advice so far, one more question....

If I go into a DMP how is it going affect my wife's credit rating? I've talked to her about my plans and she is terrified it's going to affect her squeaky clean record to the point she will not be supportive if it affects her. I'm not sure how I'm supposed to move forward if it's going to be a problem.

If you have a joint mortgage, then unfortunately your financial behaviour will be linked, so defaults etc will have some effect on her credit file, there is no avoiding that.

The thing is, this will happen anyway, regardless of what you do, if you can`t meet your financial obligations, your credit file will reflect this, and so will hers, so how you both deal with that is a matter between the two of you.

The situation will not last forever, after 6 years, negative information is removed.

But it won’t affect her at all so long as she does not seek further credit - am I correct? Just trying to provide some reassurance for the op as this is clearly a difficult moment for him. 

Well yes, as that is a credit reports sole function.

[Deleted User]

sourcrates said:

[Deleted User] said:

sourcrates said:

BDeluxe said:

Thanks for all the advice so far, one more question....

If I go into a DMP how is it going affect my wife's credit rating? I've talked to her about my plans and she is terrified it's going to affect her squeaky clean record to the point she will not be supportive if it affects her. I'm not sure how I'm supposed to move forward if it's going to be a problem.

If you have a joint mortgage, then unfortunately your financial behaviour will be linked, so defaults etc will have some effect on her credit file, there is no avoiding that.

The thing is, this will happen anyway, regardless of what you do, if you can`t meet your financial obligations, your credit file will reflect this, and so will hers, so how you both deal with that is a matter between the two of you.

The situation will not last forever, after 6 years, negative information is removed.

But it won’t affect her at all so long as she does not seek further credit - am I correct? Just trying to provide some reassurance for the op as this is clearly a difficult moment for him. 

Well yes, as that is a credit reports sole function.

Indeed - I just get the impression that the op fears his wife’s current account, whatever credit cards she has etc will somehow be affected which, of course, they won’t.

BDeluxe

Well it's a no go for me then, she will not support my desire to go on a DMP, her reasoning is our kids are approaching an age where they are going to need financial help with university, maybe a car, moving out etc and destroying our credit isn't something she will go along with.

She will also have to accept I will not be contributing much at all which is a shame because the whole point of a DMP was to get in a better financial position.

Grumpelstiltskin

If you don't want to do a DMP how are you going to attack the debt?

You do realize you can manage one yourself without going to somewhere like Stepchange?

BDeluxe

Grumpelstiltskin said:

If you don't want to do a DMP how are you going to attack the debt?

You do realize you can manage one yourself without going to somewhere like Stepchange?

I wanted to but she won't go along with it, I'll just have to throw everything I have at it and slowly it will get better I suppose.

I was avoiding getting a 2nd job but I might try it short term and see how I go, the problem there is part time gigs are pretty much always near minimum wage which doesn't do much for motivation.

No19v87

Just a query on the linked credit files and the affect that has on his wife - am I not correct in thinking the only thing it would do is slightly reduce the “credit score” which in itself is meaningless.

If his wife needed a credit card and applied for one, there would be no way of the credit card company knowing he had a DMP as data protection would not allow a search on him as he is not an applicant? 

Other than a very slight reduction in her superficial “score”, there is no detrimental affect for the wife, is there? We’re taking like a change from 999 to 990, are we not?

Am I wrong here? Of course the exception is if they needed to re-mortgage or if they wanted to take out any further joint finance.

RAS

If their existing mortgage deal ends, they look at the current providers and select the best product for them to which they can transfer without a credit check.

There was a recent report on this and about half the renewing mortgage holders are doing this now.

Grumpelstiltskin

I think the biggest problem is this.

'Well it's a no go for me then, she will not support my desire to go on a DMP, her reasoning is our kids are approaching an age where they are going to need financial help with university, maybe a car, moving out etc and destroying our credit isn't something she will go along with.'

The OP already has £30.000 debt and his wife looking into the future will want to borrow more as there is no way they could afford to pay cash for cars etc.

MrsLD

What does your wife think will happen if you *don't* enter a DMP? Does she realise just what position you are in? I had never missed a payment when I entered mine- but like you I was about to be hit with the end of a 0% offer, could not get any others and was at the end of my ability to juggle. Does she have realistic alternatives?