More DMP Questions (and SOA)

giddykipper · 15 January 2007 at 11:02AM

Hi

Sorry for all the questions recently but I really want to understand all there is to know about DMP's before I go into one.

Are there any times when they're not accepted?

Currently my SOA is:

Mortgage £578.00
Council Tax £100.00
N/Rock Loan £392.00
RBS Loan £319.00
Life Ins £15.00
Telewest £50.00 (tv/phone/internet)
Car Insurance £30.00
House Insurance £25.00
Mobile £20.00
Tv Licence £11.07
Egg Card £110.00
Halifax C/C £65.00
Virgin C/C £15.00
Egg Money £100.00

Which comes to £1830.07 (if my calculations are correct) :eek:
That's before food, petrol, gas, electric, water & car tax

I get paid £1400

I have re-jigged a few things and if I could pay £250 a month to a dmp instead of all the individual lenders then I would still have £5 left over every month and thats after spending £200 per month on housekeeping (does that seem acceptable for housekeeping btw?) gas, electric, water, petrol and car tax.

Do you think that £250 between those companies would be acceptable?? As I've said in a previous post, if they agree and I can pay off that amount then it will take around 20 years to pay off ........... do you think this looks reasonable/do-able??

My hubby and I are in the middle of a split so if I'm a little vague its because I'm not sure how him moving out will affect the bills yet.

Another question - What happens about paperwork? Do they need to see my bank statements etc? Its just that i've just changed banks so will print off all my statements etc before I close the old account!

Also, how long (roughly) does it take to set up a dmp with payplan?

Thank you kindly

Jo x

PS/ I also occasionally sell on ebay and amazon so will possibly make a little extra but not on a regular basis. Thought I could either save the extra for Christmas or put it in an isa and overpay at the end of the year if there's any left!!

CLAPTON · 15 January 2007 at 11:12AM

its really best to do an SOA this way:

all your income first

then all you spending (include mortgage or secured debts but exclude any ordinary unsecured debt). Make this as complete as possible so you need to itemise food/groceries, petrol, gas, elect, haircuts , socialising etc etc
and add up the spending to get a total

now you can see how much you have that can repay the debts (i.e. income minus spending)

then list all the debts
debt amount, minimum payments, APRs.

only then can you really see the options for addressing the debts.

now you can see the wood for the trees.

giddykipper · 15 January 2007 at 11:43AM

Right ok so I've looked at my statements and worked it all out a bit better now.

Income : £1400

Outgoings:
Mortgage £578
Council tax £95 (over 12 months)
Life insurance £15
house insurance £25
car insurance £25
Mobile £20
TV/Phone/Internet £50
TV Licence £11.07
Gas £30
Electric £30
Water £27.50
Car Tax £15
petrol £30
Housekeeping £200 (food/toiletries/cleaning stuff etc - this is an estimate - could shave it off slight to maybe £175)

Which comes to : £1151.50
Leaving : £248.50

Outstanding Credit :
Northern rock loan £25000 (until Feb 2013) - £392 p/m
RBS loan £18000 (until Sep 2011) - £319 p/m
Egg Card £5000 (15.9%) £110 p/m
Egg Money £5000 (15.9%) £100 p/m
Virgin £6000 (0% until end of Feb 07) £15p/m
Halifax £3000 (12.9%) £60 p/m

O/S credit is currently : £996 p/m

So if i could get the above o/s credit cleared by using a dmp at £250 a month I could live AND pay off all my debts (eventually).

Does that look about right?

Thanks

Jo x

CLAPTON · 15 January 2007 at 12:12PM

some comments

presumably you live alone without dependants?

are you getting single person council tax discount

can you increase income...let a room?

if you go on a DMP most of your debts will be defaulted and you will not be able to gain any credit anymore.

your spending budget must be robust enough to last for years, so you must include a few more things...firstly an emergency fund (what will you do if a tile falls off the roof, the car needs major work, the washing m/c packs up .......as you will not have a credit card you will not be able to bung it on the CC anymore)
clothes (say 20), socialising, presents (20),dental/optical/medical (20)

your total debts are 63,000 (do you have an overdraft?) and at the moment you will have less than 200 per month to pay off so this could take 26 years assuming everyone freezes interest and charges.

how much is your property worth and how much is the mortgage for?

realistically you ought to consider bankruptcy..although i'm sure it wouldn't in practice take 26 years nevertheless it would be awful long time to be living on such a tight budget.

chevalier · 15 January 2007 at 12:55PM

Just wondering whether any of this is joint debt. If so then surely some of the repayment would/should come from him?
chev

giddykipper · 15 January 2007 at 1:28PM

Nope - they're all in my name! He is helping me out paying things though.

Can you believe I rang Northern Rock to find out the balance and they actually offered me more money!!!!!! I was gobsmacked - and very quickly and firmly told them NO!

I never thought of renting out a room - I live in a 3 bed terraced so could easily rent out the spare double bedroom. I think I'll get the local paper tonight and see what kind of money people are asking for a house-share!

Jo x

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