DMP / Renting

[AnaisNun]

Hi all

After a separation 4 years ago which left me holding the baby (and the nursery fees etc), setting up and furnishing a new home and with reduced earning potential (couldnt continue in my career as it involved lots of travel), I've racked up over £25k in debt (£10k from before we separated, which was easily manageable at the time, and £15k in nursery fees, private therapy for PTSD, 2 house moves... you get the picture).

Anyway - Im in a rented home, no car, no assets. Decent salary but it's eaten up in debt interest payments and living costs ... and I've decided to see if a Debt Management Plan is right for me, and have an appointment with Step Change to discuss.

My biggest concern is - what impact does a DMP have on being able to rent a home, if I had to move? My landlord isnt planning to sell, and I plan to stay here - but at the end of the day, it isnt my property, and anything could happen.

Would a DMP stop me getting a new tenancy, in the event I needed to?
Any other beartraps to look out for?

And please be kind. I havent spent frivolously - it's been necesseties - and I never thought I'd be in this position. I of course knew what I was spending, but I was keeping on top of it, and I thought that by now I'd be able to go back to my previous career, and earn enough to more than cover and pay off the debts - but Covid has put paid to that, so...

Thanks in advance

Hi, I have a Debt Payment Plan set up through Stepchange. I'm in Scotland, and I think this is the Scottish equivalent of what you are applying for.
In short, it's been life changing for me. I'm no longer robbing Peter to pay Paul, and I can rest easy at night knowing that whilst I am paying the debt back in full, I am not accruing the crippling interest.
That said, my credit report is now 'very poor' and I'd expect it to be so for a few years, which I guess will impact you renting? I'd mention this to stepchange, as I'm sure they'd give good advice on how to approach this problem and maybe offer you a different solution?
Good luck, and ask all the questions you need to with Stepchange, I have found them to be excellent.

Thanks @Sharonthecat

I'm not too fussed about my credit score for myself - more just the practical impacts - mostly of renting. I'm hoping it'll make sense to do this - the headspace the worry is taking up, is somethig else....

I'm glad it's working out for you, and hope you're debt free soon :) x

I am in a DMP and found a landlord and moved no problem :)

As long as you are upfront about it with the letting agency it shouldn’t be an issue and the longer it goes on, the less of a problem it is.

I have a DMP, have moved 3 times since I entered into it & it's never been a problem. Hasn't shown up on any checks and no referencing agency has ever mentioned it, even though the payment shows up on the bank statements they've asked for.

Thanks @Heiderose that’s good to know.

My understanding was that a “soft search” which most letting agents run would only show up a bankruptcy or a CCJ- and they wouldn’t usually bother with your credit score/detailed file (which is all that should be impacted by a DMP?).

I need to call step change to discuss really- was supposed to do it today & took a day off work specifically to do it.. and of course DS was ill and had to stay home from nursery. Didn’t really want him to hear the conversation so... I will have to cram it in somewhere in the working day tomorrow I guess!

Does anyone know- how soon after I speak to stepchange might a DMP be in place? Just trying to understand the process

Thanks so much