Is my Payment Plan likely to affect my credit rating or result in defaults?
This will depend on the state of your credit at the start if you are currently missing
payments you may have already damaged your credit profile. Most people who enter
debt management, IVA’s Trust Deeds, full and final settlements etc, either have
already severely damaged their credit profile or will do so anyway due to not having
the ability to continue making the full payments to their creditors.
If you take out one of these products/solutions it is likely that your credit file
will be adversely affected, especially if your credit profile is good at the start
of the plan. Whilst we negotiate with lenders to stop action, lenders may still
continue collections action including default notices and litigation and there is
no guarantee that any threatened proceedings or actions will be withdrawn or lenders
associated costs cease to be added.
Any adverse credit on your credit file could affect your ability to borrow and the
choice of lenders available to you. In particular you may have difficulty borrowing
in the short term and there may be a longer term impact depending on how your credit
file is. IVAs, Trust Deeds and Bankruptcy will have a more severe impact on your
credit profile and failure to maintain an IVA or a Trust Deed could lead to Bankruptcy.
If you are already in arrears on your credit, the impact on your credit report will
be less severe. If your credit profile is good you should also explore getting a
loan if this might help you to reduce the cost of your borrowings. Our associated
company Promise Solutions are experts in arranging loans for people who struggle
to obtain loans through conventional sources. Please ask if you require further
information.
Please remember the importance of maintaining payments on important debts such as
your mortgage, rent and utility payments
Do not ignore correspondence or contact from your creditors or their agents unless
someone is dealing with this for you, in which case pass on any information quickly