DMP 9k owed - Need help

s12c

Why do credit score providers vary so much? 

I have Experian, credit karmas and equifax

Equifax are saying my score is 105/1000

Credit karma is 445/710

Experian are saying 459/999

Why are they so different? 

RAS

Credit scores are just made up figures. You may have accounts reported with one company that are OK, and another might report the two cards with the worst profile. 

They are not used by creditors when they decide whether to lend to you or give you a card.

What you need is to double check what sort of marker is in the delinquent accounts.

sourcrates

Take a read of this thread, it tells you all you need to know about your fictional credit score:

What your Credit Score really means - Please read first before posting about a credit score issue. — MoneySavingExpert Forum

s12c

Thanks everyone for the constructive comments here. 

I just wanted to ask if anyone has had success with stepchange DMPs?

I'm interested in who it usually works for - because I'd imagine a lot of people with stepchange DMPs earn less than I do, and it seems like people here are a bit negative about their overall success 

sourcrates

s12c said:

Thanks everyone for the constructive comments here. 

I just wanted to ask if anyone has had success with stepchange DMPs?

I'm interested in who it usually works for - because I'd imagine a lot of people with stepchange DMPs earn less than I do, and it seems like people here are a bit negative about their overall success 

Many people have had success repaying their debts with the debt charities.

Anyone who uses 3rd party help to do this, only does so because they are either mystified by the whole process, or they don`t have the time nor the patience to do it themselves.

Self management is always preferable, as you retain control of what happens, anyone who can use a computer can self manage a DMP, its just like paying your bills as you did previously, except you pay according to your budget rather than according to the payment requested under contract.

The debt charities are funded by the creditors, and operate on the basis of equal treatment to all, and get you up and running as soon as they can, a one size fits all approach that doesn't sit well with everyone.

They have their good points, and bad, its down to personal choice, just don`t pay anyone to administer a DMP for you.

enthusiasticsaver

You have a lot of AP markers which will stay on your file longer than defaults. Forget credit scores and a DMP is an informal arrangement so it won’t affect your career. 

I personally would self manage and let them all default. Save up for emergencies and work out a realistic budget. If you struggle with financial discipline then remove cards for Apple Pay and websites and maybe use cash for day to day spending. Put enough money in your account to cover bills and have a separate spending money account. 

While you are waiting for them all to default save up and buy a cheap bed. Hopefully you will get discounts if the debts are sold on but you have a lot of small ones there you can just get rid of first so you don’t have to deal with so many creditors. You have a reasonable salary and £9k is not a lot so this is possible for you to sort out. 

s12c

enthusiasticsaver said:

You have a lot of AP markers which will stay on your file longer than defaults. Forget credit scores and a DMP is an informal arrangement so it won’t affect your career. 

I personally would self manage and let them all default. Save up for emergencies and work out a realistic budget. If you struggle with financial discipline then remove cards for Apple Pay and websites and maybe use cash for day to day spending. Put enough money in your account to cover bills and have a separate spending money account. 

While you are waiting for them all to default save up and buy a cheap bed. Hopefully you will get discounts if the debts are sold on but you have a lot of small ones there you can just get rid of first so you don’t have to deal with so many creditors. You have a reasonable salary and £9k is not a lot so this is possible for you to sort out. 

Thanks for this. 

In terms of the AP markers, what impact will they realistically have once the DMP is done in October 26?

How likely is it to damage my ability to obtain a mortgage in October 29? 

RAS

s12c said:

enthusiasticsaver said:

You have a lot of AP markers which will stay on your file longer than defaults. Forget credit scores and a DMP is an informal arrangement so it won’t affect your career. 

I personally would self manage and let them all default. Save up for emergencies and work out a realistic budget. If you struggle with financial discipline then remove cards for Apple Pay and websites and maybe use cash for day to day spending. Put enough money in your account to cover bills and have a separate spending money account. 

While you are waiting for them all to default save up and buy a cheap bed. Hopefully you will get discounts if the debts are sold on but you have a lot of small ones there you can just get rid of first so you don’t have to deal with so many creditors. You have a reasonable salary and £9k is not a lot so this is possible for you to sort out. 

Thanks for this. 

In terms of the AP markers, what impact will they realistically have once the DMP is done in October 26?

How likely is it to damage my ability to obtain a mortgage in October 29? 

As explained earlier, defaults clear in 6 years from the date of issue. AP markers stay until 6 years after the debt is cleared

If you stick with the DMP as organised and you do not get defaults on your debts, AP markers will stay on your credit record possibly until October 35.

If you stop paying today and get defaults this winter, the defaults will clear your credit record 6 years later, so possibly winter 30.

This is why people on MSE recommend that you make sure defaults are in place before you make arrangements to pay the debts.

If you stay with Stepchange or any other DMP provider, your credit record will clear in 2035 because the AP markers. No-one can accurately predict what impact that will have on your ability to get a mortgage at that time. Currently I understand some providers will consider applications with old defaults if everything else is clear for the previous few years. 

You could ask on the mortgage forum where there are several helpful mortgage providers, about the impact of AP, delinquency and OK markers. And the impact of 5/6 years old defaults.

It's then up to you whether you continue with a charity managed DMP or whether you take control yourself, to clear your credit record quickly. 

Cross referencing the info in the documents, you might:
stop paying Allied, HSBC and Monzo to try to force defaults.
do as you are with the JDW debt as that is OK. 

Keep the DMP payment for the larger Link debt but use the £135 you're no longer paying Allied, HSBC and Monzo to clear the NewdayTesco debt in two months. 

Set the following 3 months aside to start sorting out bed situation.

Check if you've got any more defaults every month and set up token payments for those. 

You need a spreadsheet or paper file listing the date of default, and value.  Share that if you can.