If i join a debt management cheme will is be better than going bankrupt for my credit rating - not all published information says that it will.

If it won't i may as well go bankrupt

Thoughts?

Blondy252

Blondy,

Current thinking iks that is is marginally better for your credit rating.

I think it really depends on how well the scheme is intially set up and administered as much as anything else.

Like you I found conflicting information on this area so I would suggest caution.

Try speaking directly to the Citizens Advice Bureau https://www.citizensadvice.org.uk/

A debt management plan is only useful if you have enough disposable income at the end of the month in order for your debt management company to negotiate better deals with your creditors. If you have nothing for them to barter with, then a DMP will be no use in your case.

Make sure you fully understand the ins and outs of all debt reduction programmes, including IVAs, Bankrupty, debt consolidation and yes, DMP.

This is a reliable source

i have read that Debt Management Plans are not recorded on your credit file

AS i think u r right because this will be in ur benefit for any purpose related to finance.