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The Affect of Debt Management Plan (DMP) on Credit Score

If you have settled you debts through debt management plan agreement and miss any payments you have to make to your creditors, then your credit rating will be affected very badly. And if you will pay less to your creditors each month than you originally agreed then they will view your account as in default and issue you with a default notice. Your creditors will put down that you have missed the payment on your credit file and will issue a notice to you. That’s why your credit score is badly affected. How Long a Debt Management Plan Affect Your Credit Rating: If you start your debt management plan for the first time then it is likely that your creditors will issue a default notice against you. It will be registered in your credit file and will remain there for 6 years. Meanwhile all late payment records and default notice will be seen if anyone carries out a credit check against you and they will hesitate to lend you more money. After six years if you are unable