Hi again.

There's no debt write-off usually with a debt arrangement scheme or debt management plan. Depending upon circumstances, this can mean that they run on for much longer than a trust deed or sequestration would have. They usually end when all of the debts have been fully repaid.

The credit rating effect of entering either of these may well be less serious than personal insolvency, but the ongoing impact could be longer lasting if it takes a long time to clear the debts.

You're not allowed to borrow more without permission during DAS. There's no rule against it if in a DMP - but credit is likely to be hard to obtain and quite possibly very expensive. It's also just not a good idea to take on further credit while you're in an arrangement to tackle previous credit commitments that you cannot afford.

Getting a new mortgage while still in a DMP or DAS is, I'm afraid to say, likely to be very difficult or impossible. Lenders have to be seen to lend responsibly. Giving further new credit, to someone who isn't in a position to normally manage their existing credit commitments, is likely to be seen as irresponsible lending.

I think whichever way you look at it until you have cleared your unsecured debts and tidied your credit report up you will probably find it very difficult to secure a mortgage.

There will also come a point whereby you won't be able to secure an unsecured loan or any type of finance with your credit rating and current debts.

As TDA has advised, the long term impact on your credit rating could be longer on a DAS/DMP than a TD or SEQ.