DMP vs Full & Final settlement and advice on SOA

icecube2009 wrote: »

Hi

Can someone tell me please what would be the best a option, or the fors & againsts of either doing a Low start DMP or (if we can borrow some cash from family) a Full & Final Settlement.

Also is there a help thread on here regarding FF's? I can g=find a lot of help r.e. DMP's but nothing really about FF's

Thanks so much x

can anyone please give me some help with this, DH is making a 2.5 hour journey this afternoon to ask his parents for enough cash to offer FF's to our creditors, but i have just been told that we may not be able to offer FF's as we are up to date with aour payments, if this is the case there is no point DH asking them for the money as we would have to pay it back so even if it was enough to pay off half pur debt we cant afford to pay the remaining half & pay them back too...HELP please!!

Firstly we have been struggling with this debt for ages, we borrow off one to pay another each month just to stop us going into arrears, DH had to take a £400 a month pay cut last may & since then things have got a lot worse.
After posting on here before & spending hours trying to talk my DH into getting his head out of the sand, he has plucked up the courage to ask his parents for help. WE owe £42k (currently paying back in the region of £800 a month but only have £200 approx a month spare to do this with so borrow from one to pay another) so we figured if we could borrow £20k from his parents we could make FF settlement offers to our creditors & end up just having to pay the in laws back to £20k at a rate of £200 a month. This is very hard for DH as he doesnt get along with them particularly well & we dont even know if they would even consider lending us the money but we do know they do have the means so it has to be worth an ask!
DH is as I type on his way to their house (2 hour trip) to ask them. But a few people have now said to m,e that because we have been up to date with our payments the banks wont accept FF's, so is DH wasting his time?
her is my statement of affairs, i would like to add that when I did this on the cccs web site it only left us with a little over £200 a month to pay towards debts as i think it allowed for a couple of things (i.e. dentist, more for clothing etc) that I havent included here

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 3
Number of children in household......... 2
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 700
Partners monthly income after tax....... 1350
Benefits................................ 0
Other income............................ 130
Total monthly income.................... 2180

Monthly Expense Details
Mortgage................................ 732
Secured loan repayments................. 160
Hire Purchase (HP) repayments........... 44
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 122
Electricity............................. 30
Gas..................................... 35
Oil..................................... 0
Water rates............................. 32
Telephone (land line)................... 0
Mobile phone............................ 45
TV Licence.............................. 12
Satellite/Cable TV...................... 30
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 40
Petrol/diesel........................... 50
Road tax................................ 10
Car Insurance........................... 32
Car maintenance (including MOT)......... 10
Car parking............................. 50
Other travel............................ 20
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 14
Pet insurance/vet bills................. 7
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 30
Other insurance......................... 15
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 10
Total monthly expenses.................. 1870


Assets
Cash.................................... 0
House value (Gross)..................... 190000
Shares and bonds........................ 0
Car(s).................................. 5000
Other assets............................ 0
Total Assets............................ 195000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 166000...(732)......0
Secured Debt.................. 7000.....(160)......0
Hire Purchase (HP) debt ...... 800......(44).......0
Total secured & HP debts...... 173800....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
lloyds card me.................10000.....200.......0
lloyds card dh.................10000.....200.......0
egg loan me....................5000......110.......0
other card dh..................2000......40........0
loan dh........................1000......200.......0
egg card me....................5000......100.......0
Total unsecured debts..........33000.....850.......-


Monthly Budget Summary
Total monthly income.................... 2,180
Expenses (including HP & secured debts). 1,870
Available for debt repayments........... 310
Monthly UNsecured debt repayments....... 850
Amount short for making debt repayments. -540

Personal Balance Sheet Summary
Total assets (things you own)........... 195,000
Total HP & Secured debt................. -173,800
Total Unsecured debt.................... -33,000
Net Assets.............................. -11,000

Created using the SOA calculator at https://www.makesenseofcards.com.
Reproduced on Moneysavingexpert with permission, using other browser.

Burlesque_Babe wrote: »

I agree. If you are up to date, paying minimum payments and it isn't with a debt collection agency, they won't accept a F+F.

Copy over your SOA from the Daily Thread, there are some savings you can make I've already spotted

so if my in laws say yes they will lend us £20k what should we do? or shall I just tell dh not to ask now? what if we now stopped paying our creditors and went into arrears then offered the F+F's in a few months?

I also think my gas & electric payments will possibly go up as I have come to the end of the years introductory rate i had