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| The independent answer to your debt problems | login join |
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edro
| 28-06-2007 09:51 PM |
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Joined: 28 Jun 2007 Posts: 1 | Here's a quick question. Will a debt management plan/arrangement effective my credit rating? |
| DW George | 29-06-2007 12:23 PM |
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Joined: 01 May 2007 Posts: 148 My Profile | edro The quick answer is yes. You are breaking an existing arrangement with your creditor. However, you are exhibiting a responsibility to paying your debt. George |
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poppy
| 04-09-2007 07:27 AM |
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Joined: 04 Sep 2007 Posts: 3 | A Debt Management Plan may improve your chances of getting credit in the futureby showing that you have repaid your creditors in full. Your chances of accessing credit in the future will be better if you show faithful payment in full, than if your credit report shows bankruptcy, non-payment, or settlement of debts for less than the full balance. |
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insider
| 14-11-2007 09:58 AM |
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Joined: 14 Nov 2007 Posts: 2 | Hi I'm new here and have been reading some of the threads and feel compelled to comment on this thread. Poppy, I'm sorry but this just confuses the issue. DMP's are taken out by those who are struggling with the demands of their creditors. DMP's are either used as a stop-gap to alleviate a short term financial problem or to pay the full amount over a protracted time-scale. After six years an bankruptcy or IVA will not show up on your credit scoring. So if you compare the impact on your credit scoring you'll find that a DMP may well have the greatest impact. Edro , I know this is a bit late in the day but if you are struggling with your debts, don't feel the need to do the "honourable" thing and pay it all back. If you are insolvent clear your debts either through and IVA or bankruptcy. If you are solvent try and use a consolidation loan to ease your monthly repayments. Make sure you cut up your credit cards!! Don't emotionally torture yourself with paying back your debts in full. Your creditors should have more control over their money and not allow people to run up so much debt. Insider |
