Debt Arrangement Scheme

[Fintonagirl]

Hello all!

Has anyone successfully got a mortgage after completion of a DMP? What were your offers like?

I’ve been promoted recently so paying off a larger chunk than originally and due to go up another band soon and will pay even more which should mean it’ll end in 2025 as opposed to end of 2027. Do you think if I save from its ending for 2 years that after 2 years pass I’ll bea more attractive candidate?

thanks!

I’m talking back in 2009 so not sure what it is like now but it was 5 years usually and lenders like preferred were more likely to give mortgages as they dealt with customers with credit issues but the interests rates were substantially higher

 

[Fintonagirl]

CAB really helped me when I had problems - they are really good! Hope you get sorted

 

[Fintonagirl]

I would have thought if she is a on the house deeds she would have to sign in order for him to be granted personal guarantee against the property but perhaps she isn’t on the deeds and doesn’t realise?either way they would have to sell the house and pay debts or she would have to pay debts personally and keep house I would have thought although if she speaks to citizens advice bureau they are really helpful and deal with this kind of thing daily just probably not to the same degree if debt!

 

[Justreading]

I used PayPlan... started maybe 2015 and ended quite recently. All my interest was frozen, I was able to reduce my payment massively and never paid any fees or admin charges etc. Was a huge help for me

 

[BettyCrockerr]

why not

Because your father is deliberately not paying his rent and council tax. Also your FATHER is the one in debt not you - you can’t even get him to admit that so how on Earth do you think you are going to get him to look into and apply for debt solutions?

 

[sourlemon]

Revisiting this thread- I’m trying to help my friend. She’s in debt- not to a large amount (under 5k) but it’s enough that she’s worried sick about it. We’ve sat down and gone through all of the bills and she’s making minimum payments but not having enough to live on. Had a look at step change but it says that they cannot help as she’s self employed. Ideally she wanted to go on a debt management plan to freeze the interest so she could make a dent in clearing the balances.

Not sure what else to do? She can’t get a loan to consolidate as her credit rating is crap. I feel awful as I really thought Stepchange would be able to help and it’s taken her a lot to get her head out of the sand and address the debts head on.

Any ideas?

Is the debt with multiple companies?
The minimum payments, call these companies say she has done income and expenditures and is struggling and would like to make the smallest payment possible, the minimum is usually £1 - £5 or ask for a payment hold for 30 days while she comes up with a plan.
If you need any other help or any questions let me know.

In fact it anyone needs any advice I'll do my best. I work in debt management

 

[MissSL]

Thank you for your time - so do I

 

[bubblebar1317]

Hello all!

Has anyone successfully got a mortgage after completion of a DMP? What were your offers like?

I’ve been promoted recently so paying off a larger chunk than originally and due to go up another band soon and will pay even more which should mean it’ll end in 2025 as opposed to end of 2027. Do you think if I save from its ending for 2 years that after 2 years pass I’ll bea more attractive candidate?

thanks!

 

[Champagnecampaign]

Hello, looking for a bit of advice. I had to take out a DMP with StepChange which has got off to a difficult start due to some companies saying they hadn’t received paperwork.
I keep track of my credit file on ClearScore and all my debts are disappearing from it? Did this happen with anyone else?

 

[al255]

Has anyone been able to remortgage within a DMP? My fix term ends in 4 years and I’m really stressing my DMP won’t end for 9 years at the rate I’m paying it off..

 

[bubblebar1317]

Thank you!!
That’s really reassuring as my monthly payments are near enough the same as yours were too! It’s terrifying having this much debt and now with everything else going up it has become very real.
You have really put my mind at ease so thank you xx

It’s so scary and I was worried about the same as you with houses etc. but I’m at peace now that this is how I’m paying it off! You’d never get a mortgage with that amount of debt anyway and would be even worse off. At least now we can get the credit scores back up once paid off & still be able to get a mortgage!

Once you’re in it, it feels so much better. It’s taken a huge weight off my mind and I feel like I’ve got some control back finally!

You’ve got this xx

 

[Bleurghgram]

I entered a DMP with Stepchange in 2013 and paid it off by 2017. They dealt with everything and no one was able to contact me in that time. It’s completely changed my spending habits now, I can’t believe I ever got into the position but it’s so easily done.

I built my credit back up with a low limit credit card that I put my petrol on every month, it’s shot up so much quicker than I expected so it’s totally possible to come back from. Now I’m buying a house and managed to secure a mortgage through a high street lender with decent rates - something I didn’t think would ever be possible.

Best of luck with everything, it’ll feel like such a relief x

Quoting myself to say I got a mortgage 5 years after my DMP ended and I got a normal rate. I was in a Facebook group about it at the time and lots of people were getting mortgages with lenders who specialised in helping people with adverse credit, they paid a higher interest rate. Fingers crossed for you! X

 

[Fintonagirl]

Hi, I entered a debt management a few years ago which is luckily now paid off and it was the best thing I ever did. Your existing landlord doesn't need to know, nor does your job. A new landlord may see it on a credit check however I had no problems in moving whilst I was in a debt management. I was just honest, I'd never missed a payment while I was in my debt management, I was working so I felt like it didn't really effect me. I went through stepchange and they were amazing, don't use a company that charges a fee. Just pick up the phone and ring them, I promise you'll feel so much better.

Totally agree with this - it makes everything more manageable

 

[saltandvinegarcrisps]

Ergh I just spoke with the Iva advisor about setting it up. Essentially I will have to sell my car even though I have it because I’m disabled as is my son. I have a life limiting illness and will likely be dead within ten years so now I can’t stop crying becaus what time I have got will be stuck in this house because I won’t have my car.

Think you only have to sell if it's worth more than 7K? Which isn't hard just now with the price of used cars... you could sell and buy something cheaper and put extra cash towards your debt, or apply for PIP motability if you're registered disabled. If you have the car on finance then it's considered part of your debt so would need to be consolidated with the rest of it? If you're reducing your monthly outgoings with giving to your car it will hopefully allow you to save and get something a bit cheaper in the future.

Good luck, I considered entering a debt arrangement at one point but managed to pay it off myself, had to go full time at work and give up a lot! Currently driving a 15 year old car when my last one was brand new out the showroom, had about about £16k total debt and now I'm down to £1k left on a 0% card so I know how tough it is having debts that seem unmanageable and it's given me a reality check with my spending. I feel for you having to do this without being able to work and pay it off. Hope things get better.

 

[heythere!]

Hey! Not sure if this thread is still active. I have around £12,000 of debt over 2 credit cards. I’ve been looking into a DMP but I’m scared to do anything as my husband doesn’t know the true amount of the debt. Does us having a house and me having a car get taken into consideration. The last thing I want is to lose my house/car.

 

[Fintonagirl]

Yes you can get a mortgage after you have paid the DMP in full - you will need to show income and it may have to be with a lender who has higher interest rates but deffo not impossible. Also will work in your favour that your partner has a mortgage before

 

[BettyCrockerr]

I've contacted Step Change for some assistance. Has anyone had any experience with debts been written off or reduced? thanks ..

Do you mean like a trust deed type of thing??

 

[BettyCrockerr]

I’ve spoken to step change again and things are looking better now. My specialist is being a twat tbh and won’t even bother taking my calls least not write a letter saying I won’t work again unfortunately. We now do have a plan going forward though that I’m happy with, but when I speak to the hospital next I will discuss it and see what can be done xx


Bloody pip rejected my claim as I’m not disabled enough would you believe

Re-apply for pip. Can you also not apply for it on behalf of your son? Or something similar?

 

[rasberry spoons]

I used stepchange debt management plan and joined a few debt groups on Facebook, the advice on here is good will defo have a look at staceys world and Martin Lewis x

 

[yogiessexdubs]

Erm I'm not sure if honest, either the debt is written off after a lengthy period or someone has stepped in to make an agreement ..