Coming off a DMP

[mel.73]

Hi

Sorry but I have another question or rather seeking advice. I seem to be on here everyday at the moment with various questions but I am running around like a headless chicken trying to get things straight as best I can.

Husband and I are currently in a DMP with Payplan. The interest and charges have been frozen with all but one of our creditors. We have put our house on the market and hoping to sell to enable us to pay off the majority of our/my debts and then resume our normal credit agreements.

I have sold my car this week and have managed to accumulate some money. My question is with this money do I stop the DMP, clear the arrears and then continue paying the monthly payments as per the credit agreement in the hope that the house sells in the next 5 months or should I just present the money to Payplan and let them sort it? I asked them about the arrears and they said don't worry about it as it will all be paid eventually but we were already looking at 27 years so that will continue to rise for ever and a day and I will be dead and gone before it's paid!

The only reason I wanted to pay arrears and resume normal credit agreements is that I have had one default in the last week and probably more to come which would seriously harm my already damaged credit rating, therefore limit my options for a new, yet smaller mortgage. I have been told by a mortgage advisor that a DMP shows on your credit file (I can't see it as I have looked) but obviously I do have a number of missed payments now.

I guess that second part of this question is how long does it take to restore my credit rating bearing in mind i'm not in an IVA but a DMP.

Hope that all makes sense. Advice greatly appreciated and hopefully I won't have too many more questions!

Mel

[Adam Davies]

Hi Mel
The default will be on your credit file for six years and will affect your ability to get anymore unsecured borrowings
I presume that you can't make your contractual payments in full so paying off the arrears and going back to making contractual payments would not be a good idea, especially if the house doesn't sell in the five months.
Stick with your DMP and let Payplan distribute any lump sum that you may have
Regards

[plasticdaft]

Given that the interest is frozen on all but one account,any lump sum distributed by payplan should see a good reduction in the amounts owed.
I totally agree with Andy that its risky to guess that your house will sell by a set time as no one can predict if it will sell or not.
Hope thats some help.