Debt Management Advice Please

m1ndg4m3

Hi all,

I am new to the forum and have a couple of questions to ask.

4 years ago I struggled to make payments on my £16000 worth of debt so I contacted a debt management company to consolidate my debts for me.
I pay around £250 per month and I believe the DMC is taking around 21% odd each month. I have never missed a payment.

I have just purchased my credit report and credit rating. The report shows I have £9725.00 left to pay and the rating shows as 245 very poor.

I was under the impression that my credit rating would gradually rise over time but it hasn't.

Probably quite obvious questions however....

Is the fact I'am still in the debt management scheme keeping my rating low?

If I had the opportunity to take a loan (via a family member) to pay off the remaining debt and get out of the debt management scheme would it be wise?

how quickly could I see a rise in my credit rating once out of the scheme?

Thanks in advance for your help :beer:

MissEyre

Hi, welcome!

You would clear your debt much faster of you moved your DMP to one of the free debt charities that provide this service-if you call CCCS, they can advise you on how to do this. As the service is free, it means that all of the money you pay each month goes towards your debt, not to paying the company who negotiate it for you.

As I understand it, your credit rating will be pretty low while you are on a DMP-are you looking to take out a mortgage or more credit soon? If not, I wouldn't worry about your credit rating for now-just try to get the debt clear as fast as possible.

Good luck!