Approval for car lease when in a debt plan
If you’re in a debt plan, it’s likely it will be a Debt Management Plan (DMP) or an Individual Voluntary Arrangement (IVA).
In many instances, lenders won’t consider your potential for making repayments if you’re in this situation.
Can I get a car loan while on a debt management plan?
Enrolling in a debt management program should not impact your ability to finance or lease a car or qualify for a student loan. While creditors may void benefits if you apply for new credit cards on a debt management program, this does not extend to car loans, mortgages, student loans and other types of debt.
Can I get a phone contract on a DMP?
You may come to the end of your mobile phone contract during your DMP. If this happens you should be able to stay with your current provider out of contract. However your poor credit rating will mean it is unlikely they will let you sign up to a new one. It may be possible to borrow to buy a new car during a DMP.
Can I get a credit card while on a debt management plan?
Any credit card that is included in your DMP is required to be closed. Keep in mind – the agency administering your debt management plan will not (and cannot) close your credit cards. If you don’t close the accounts on your own, your creditor will once the account has been accepted onto the DMP.
Can I pay off my debt management plan early?
It is possible to pay off a Debt Management Plan (DMP) early. This can be done by increasing your monthly payment or using a cash lump sum to settle the debts. Increase your monthly plan payment. Paying debt early with a cash lump sum.