Hi
I am looking for some advice about continuing with my application for DAS or a trust deed.
I have debts of £14300 and have worked out with Stepchange my budget of £187 a month to pay off towards DAS over 8 years 7 months. I don’t own my home and my car is on finance with no other assets or savings etc
Ive started my application for DAS but I am having doubts about how long the DAS will take and that it will remain on my credit file for 6 years once paid off.
I would in future like to get a mortgage with my partner and just worry that with DAS it will take years longer to be able to improve my credit file than with a Trust Deed which I believe drops off 6 years after I start one?
Thanks
Hi Jon2222. We don't pretend to be experts on credit files and credit scoring - partly because there are differences between lenders and the different credit reference agencies.
You are certainly correct that the Trust Deed should drop off your file 6 years after it starts. I am not certain about how DAS is treated, however I believe it might be basically the same, ie it disappears 6 years after it starts, as everything that is reported on a credit file disappears after 6 years.
Thanks Kevin
I have spoke to Payplan who recommended a TD and stepchange who recommended a DPP.
I like the appeal of a TD as it will get me debt free in half the time and Payplan say I will only have to pay extra for any bonus or overtime if it is more than 10% of my monthly income and even then anything over that it is only half I pay so I could still use that extra income to save etc.
I can’t quite work out what the benefits of the DPP are over the TD to justify the longer term u less I am misunderstanding the two solutions.
@jon2222 Good afternoon
I am happy to discuss the difference between a DPP and a Trust Deed with you if this helps you.
Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds
@jon2222 Good morning you can either phone the office or the freephone number listed on the site, or provide me with your number and a time suitable for me to chat this through with you.
Debt Adviser & Forum Administrator - Ask me anything about Trust Deeds