Debt getting me down

llcooljayne1

If a dmp lasts 17 years, does that mean I’ll have poor credit for all of that time?

llcooljayne1

the rest of the debts were living beyond my means! I had a great paid job so it was more affordable but now I don’t get paid no where near as much so it’s become impossible.

RAS

Once a default is issued on an account, it will clear from your credit record after 6 years regardless of whether it is fully paid off or you've never paid a penny.

If you win an affordability claim it the decision may include removal from your credit record immediately or after the debt is cleared.

Grumpelstiltskin

Just because Stepchange say the DMP will last 17 years does not mean it will last that long. Stick with us and we will help you find ways to make it go quicker.

You aren't going to work everything out in a couple of days but nothing moves quickly in debt collection so please stick with us and we will do our best to make things better for you.

llcooljayne1

Thank you all of you! I feel reassured and less alone for sure. I feel like everyone around me is living life to the full, holidays, clothes, days out and here’s me not even being able to afford to get my hair cut!

llcooljayne1

So as an example, if I started a DMP tomorrow, this would drop off my file in 6 teas regardless of how long the DMP lasts for?

Grumpelstiltskin

What you have to remember is the majority of these people are putting everything on their credit cards and down the line they will have money problems, at that point you will be in a better position because you will have taken control of your finances.

BikingBud

https://forums.moneysavingexpert.com/discussion/comment/82039563#Comment_82039563

Do you mean your parent lent you £500k or gifted you £500k?

As I still find it difficult to grasp that you managed to get their names on the deeds yet not have any liability for the mortgage and the mortgage providers were content?

llcooljayne1

They live with us in the house, we all bought one big house together as we relocated. So they own the majority. Everything was done through solicitors.

fatbelly

https://forums.moneysavingexpert.com/discussion/comment/82040092#Comment_82040092

Remember a dmp is an informal solution. It does not, of itself create a mark on your credit file. Each debt in the dmp will show a default, and the whole entry drops off after 6 years, as explained

An IVA is an insolvency solution and does create a fresh mark, which drops off after 6 years, or when the IVA completes, if longer.