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Chances of DMP provider finding out I had to take out a debt?

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Hi all,

Please don’t judge as this was necessary.

I am currently on a DMP with a certain popular provider and have about 18 months left on it.

My parents are retired and essentially rather poor (funnily, just like I am). There’s an important expense that came up for them that’s an absolute necessity. I don’t want to dwell into the story but it’s about £5,000 and they’re not eligible for a loan.

However, I seem to be. Now, they said they’ll pay it off and I know they will - they’re my parents and they’ve helped me financially lots before so I do certainly feel obliged to help them.

Now… IF I was to do it… would my DMP provider find out? Or my creditors? Do they check credit reports periodically? I just want to know how it works.

Please, I do realise it’s all rather unwise but let’s just focus on answering the question and now telling me about my bad decisions haha

Comments

  • Grumpelstiltskin
    Grumpelstiltskin Posts: 5,436 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    OK number 1 who is your DMP with? A free provider I hope.

    Number 2 Do your parents qualify for benefits and if so are they claiming them?

    Number 3 Have you saved an emergency fund?

    You could always cancel your DMP and self manage.
    If you go down to the woods today you better not go alone.
  • JamesAnon
    JamesAnon Posts: 3 Newbie
    First Post
    OK number 1 who is your DMP with? A free provider I hope.

    Number 2 Do your parents qualify for benefits and if so are they claiming them?

    Number 3 Have you saved an emergency fund?

    You could always cancel your DMP and self manage.
    Hi. It is with a free provider, yes.

    in terms of qualifying for benefits then yes there are on some, but it’s not much at all. I don’t have an emergency fund, no. But I’ve just changed my job and it’ll be very well paid after about 6 months to a year.

    I’m a little scared to self manage I guess. In terms of them finding out, do you think it’s possible? 
  • Grumpelstiltskin
    Grumpelstiltskin Posts: 5,436 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Many people on here self manage, you just pay your creditors yourself instead of paying the DMP providers. How many creditors do you have and how much do you owe each one?

    Obviously the fewer creditors you have the easier it is, but it's usually just setting standing orders up to each creditor.
    If you go down to the woods today you better not go alone.
  • sourcrates
    sourcrates Posts: 31,529 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    I assume its stepchange were talking about, last time I looked they were dealing with over half a million new accounts so cherry picking information from just one would be fairly unlikely I would say.

    Having said that, you may find you get declined when you actually apply for the loan, especially if you have defaults on file etc.

    Worst case scenario is if you do apply, and are accepted, and they do find out, then they will terminate your DMP and you will have to pay your bills yourself, so no great loss.
    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 forumteam@moneysavingexpert.com. 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- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • JamesAnon
    JamesAnon Posts: 3 Newbie
    First Post
    I assume its stepchange were talking about, last time I looked they were dealing with over half a million new accounts so cherry picking information from just one would be fairly unlikely I would say.

    Having said that, you may find you get declined when you actually apply for the loan, especially if you have defaults on file etc.

    Worst case scenario is if you do apply, and are accepted, and they do find out, then they will terminate your DMP and you will have to pay your bills yourself, so no great loss.
    Assuming my creditors did find out, could they then increase the overall amount owed by adding on the interest that they’ve stopped? 
  • Grumpelstiltskin
    Grumpelstiltskin Posts: 5,436 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    JamesAnon said:
    I assume its stepchange were talking about, last time I looked they were dealing with over half a million new accounts so cherry picking information from just one would be fairly unlikely I would say.

    Having said that, you may find you get declined when you actually apply for the loan, especially if you have defaults on file etc.

    Worst case scenario is if you do apply, and are accepted, and they do find out, then they will terminate your DMP and you will have to pay your bills yourself, so no great loss.
    Assuming my creditors did find out, could they then increase the overall amount owed by adding on the interest that they’ve stopped? 
    Forget that, please give us the details I asked for.
    If you go down to the woods today you better not go alone.
  • sourcrates
    sourcrates Posts: 31,529 Ambassador
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    Once your debts default, interest is in the past and can`t again be added, stop thinking "what if" and concentrate on the "now".

    You taking further credit is of no concern to your existing creditors, and if your DMP was to be terminated, you simply make the payments yourself, its not that hard to do.
    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 forumteam@moneysavingexpert.com. 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- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
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