Debt and Employment

jamesdean91

So, I am currently in a DMP with StepChange and have been making regular payments to reduce mine and my partners £35,000 debt since May 2025.

VAP_Driver

if you’re in a DMP that you are making regular agreed payments to, then you’re responsibly managing your debt. Primarily, it’s down to the risk profile of having unmanageable debt makes people more likely to commit fraud, or be vulnerable to blackmail. But your debts are out in the open, as in they are acknowledged.

You may attract additional scrutiny when they go through their background check, and have to provide more information and answer some probing questions, but you have a compelling argument to make. I once passed and held a government high-level security clearance with a CCJ, so it’s not just a case of large debt/poor credit history = lose job.

Jemma01

I would continue to target my debt until that time comes. Do what you can to demonstrate that it was a period of difficulties and that it is over and you have been on the train to recovery (which sounds like you are). Think about the success story about your debt management that you want to share.

Is the 35k a shared debt as it sounds, or each is managing theirs? Would your employer see all defaults against your record?

Your company is likely to find you a role that's a low risk of financial fraud if they have concerns, than deem you unfit entirely.

born_again

https://forums.moneysavingexpert.com/discussion/6679296/debt-and-employment

Speak to your line manager. Far better to be upfront & honest about the debts. Rather than they finding out in a check.

YBR

https://forums.moneysavingexpert.com/discussion/comment/82097644#Comment_82097644

This. It's much better if you mention it first than if they discover something you kept "secret" which they might perceive as dishonesty. In all likelihood the "dishonesty" (their perspective potentially) would be a bigger issue than the debt.

RAS

If you go back to the banking crisis and the personal fall-outs that played out here, honesty really was the best policy.

Your employer should have a clear policy on staff indebtedness, in your staff "handbook". If you have a union or staff association, they can contact your employer on a "what if" basis, describing the situation but not naming you initially. Or you may be able to make private representations to a named contact in HR.

What played out here wasn't consistent. Some banks transferred the debt to their books and the employee paid it down. Some expected the employee to meet a designated contact regularly to demonstrate progress with the original creditors. Some employees were actually helped to go bankrupt, at their employer's behest.

They kept their jobs, all bar one. That was the person who came on one lunch-time because his employer had found out he had gone bankrupt that morning. He was the only one to lose his job, and thought it really unfair.

ManyWays

I agree with checking your staff handbook. You may be worried about nothing - you are managing your debts and repaying them in full, a DMP is not a form of insolvency like an IVA or bankruptcy.

A couple of asides.

Have you looked at affordability complaints against your debts? Win one and some or all interest is refunded so the DMP speeds up.

Have you or your partner had has a car on HP or PCP that started between April 2007 and November 2024? If you have, read this

Car finance FREE reclaim tool & guide | Martin Lewis

as you may be able to get a refund of come commission you didn't know you paid. This will not be until late 2027, but it is worth apply now to find out,.