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

JamesAnon

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

Grumpelstiltskin

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.

JamesAnon

Grumpelstiltskin said:

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

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.

sourcrates

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.

JamesAnon

sourcrates 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? 

Grumpelstiltskin

JamesAnon said:

sourcrates 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.

sourcrates

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.