DMP or arrangement to pay?

jimbo2010

Hi, 

Just wanted some advice, what is better to do - 

1) Let debts go to default and arrange DMP
2) Make agreement with creditors for an arrangement to pay as I have not missed any payments yet

sourcrates

Depends on various factors, but generally if debt management is going to be a long term thing, then option 1.

However, if its just a short term blip, then option 2 would be less invasive.

jimbo2010

If it was say for 2 years, would an arrangement to pay be better, I have 3 creditors and owe about £5600 and looking to pay them 25 each for the next couple of years to sort my finances out

sourcrates

In your case it would be marginal, "AP" markers will stay on file for 6 years after the debt is settled, so 7 years in total if it takes you 2 years to clear the debt, a default would be gone in 6.

For only 3 creditors and such a small debt, I would try not to overthink things too much, your credit file will clear eventually, I would just do what suites you best.