Debt Management Plan

vickyh_2

Hi All

I hope this is the right place to ask this question. I am struggling to delay going on to a debt management plan but eventually I will have to. Can someone please tell me how that will show on my credit file? I'm trying to hang on because my house is for sale and when I sell I am going to go into rented (scarey) and I understand agents do credit checks. I'm trying to keep my credit rating good for as long as possible.

Many thanks

Vicky

Deep_In_Debt

vickyh wrote: »

Hi All

I hope this is the right place to ask this question. I am struggling to delay going on to a debt management plan but eventually I will have to. Can someone please tell me how that will show on my credit file? I'm trying to hang on because my house is for sale and when I sell I am going to go into rented (scarey) and I understand agents do credit checks. I'm trying to keep my credit rating good for as long as possible.

Many thanks

Vicky

Hi Vicky
A DMP will wreck your credit file as you are in effect breaking the terms of your original agreement with your creditors by paying reduced amounts. Don't know what sort of impact this would have for rented accommodation though.

freddy08

Hi Vicky,
You will get missed payments & eventually defaults on your credit file. Do you have equity in your house?
Will the sale get you out of trouble with your debts?

vickyh_2

Thanks for the information. Thats exactly what I wanted to know. When my house is sold I will have options, yes, so I will keep struggling on for now.

thanks again.

Vicky

rayday2

A DMP can effect your history depending on how agencies report it, I have a couple of defaults out of ten accounts and 4 arrangments to pay on my account.

On the plus side I have kept my house as I did not want to worry about getting back on the property ladder. Also after nearly two years on a DMP I managed a re-mortgage about 6 weeks ago with a main stream lender.

A DMP is out of all the debt solutions not the worst damaging but obviously impacts. But the whole idea of a DMP is if you own your own house you can afford to keep it! You re-address the balance and actually end up with more to live on but you won't rely on credit again - the payoff being credit would be more expensive - which actually suits us DMPers help us keep away from it!

Jeffers90

Hi everyone,

Sorry for hijacking this thread - i'm new to this and not sure how to start one. Hope this is the right place, I just searched for debt management and this was the 1st one that came up.

I was almost sure about debt management until I have read a few of the replies on here. Will it really ruin my credit? I'm so confused - I was reading this article on a blog earlier (http://www.gregorypennington.com/debt-management-blog/962/is-debt-management-better-than-debt-consolidation.asp) which compares debt consolidation and debt management - the two I am considering. I don't want to keep applying for loans and getting refused because of the credit crunch and ruin my credit even more - but I also don't want to ruin it on debt management. Please help!

I have £13000 on credit cards and a £6000 unsecured loan. I cannot afford the monthly payments - what should I do??? Any advice is greatly appreciated & I hope you get sorted too Vicky!

rayday2

Best advice I can give you is to ring either the CCCS, Payplan or national debtline who will all give you impartial advice.

Gregory Pennington sell I believe secured loans as well as IVA and DMP so they get a profit what advice they offer. The above I mentioned will steer you clear in other ways of getting help without more borrowing.