Formal solutions are not invisible
A Protected Trust Deed is a formal insolvency procedure and is recorded on the public Register of Insolvencies. DAS Debt Payment Programmes are recorded on the DAS Register. Credit reference agencies can use public and lender data when compiling credit files.
Borrowing may become harder
Entering a formal debt solution can make obtaining new credit more difficult or expensive. The exact impact depends on the solution, lender criteria, your wider credit history and the passage of time.
Do not focus only on the score
If current debt repayments are unaffordable, protecting a credit score at the expense of an unsustainable financial position may not solve the underlying problem. The correct comparison is between the real consequences of each available option.