Please offer any advice you have :)

2

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  • Thanks for all your replies, we have always tried to stick to a budget but our money just seams to disappear. Do you have any advice on how to make us realise where our money is going? What's a realistic food budget for 2 people? Thanks again
    08/12/12 Day one of looking towards the future :T
  • Tiger56 wrote: »
    Do you have any advice on how to make us realise where our money is going? What's a realistic food budget for 2 people? Thanks again

    Try a Spending Diary - you need to write down everything ... even 30p for a paper, or 60p for the bag of malt*esers that just falls in your basket (well, they always seem to fall into mine!) etc. It's a real eyeopener!

    Re groceries, I'm terrible at these but I do know couples that manage on £140 / month (and some less!).

    Try the Grocery Challenge on the Old Style Board - great bunch of people, loads of tips & some fab recipes at the start of the thread.
    Grocery Challenge £211/£455 (01/01-31/03)
    2016 Sell: £125/£250
    £1,000 Emergency Fund Challenge #78 £3.96 / £1,000
    Vet Fund: £410.93 / £1,000
    Debt free & determined to stay that way!
  • you could consider doing your DMP yourself? All the letters can be found easily from here. One key thing to managing your finances is keeping records. I've been debt free for 5 years now from a similar amount of debt and I have learned the hard way that my notes and filing system are my best armour. that and a good calendar.

    Often find these days that my records out gun pretty much any of the companies I've disputed anything with in the past few years.
  • How did you start to do it yourself? That is defiantly something I am interested in doing. At least that way you realise exactly how much work has to go into it. Not an easy option. At least I have control over everything then.
    08/12/12 Day one of looking towards the future :T
  • Tiger56 wrote: »
    How did you start to do it yourself? That is defiantly something I am interested in doing. At least that way you realise exactly how much work has to go into it. Not an easy option. At least I have control over everything then.

    You can do a self managed DMP via the CAB and it's all online. Check out

    http://mymoney.nedcab.org.uk/moneyadvice/signup.asp
    LBM 10/1/12 ~ DFW Start 6/2/12: £82,344 ~ Now Zero
    :staradmin:starmod::staradmin Debt free 17th April 2015 :staradmin:starmod::staradmin
    Eternal thanks to the DMP & Mutual Support (no.439) and Payment a Day Threads
    Mortgage free 3rd July 2014 - Grateful thanks to the 2013/14 MFW threads
    "Debt is normal. Be weird!" Dave Ramsey
    Proud to have dealt with our debt :)
  • Hi Tiger,

    It depends where you are starting from. I had a couple of shoe boxes of scrappy paper and not a lot of info to go on so I divided my efforts between reading this site, applying for my credit report and setting up a filing system with folders etc.
    Time to Face the Music also put a good link there for you. The basis of doing your own DMP is knowing exactly how much you owe, how much you have coming in and your SOA.

    There are other things that you can do along with managing your debts - increasing your income;
    check you are getting all the benefits you are entitled to
    ebay some stuff
    look for additional part time work
    reduce your outgoings;
    no spend days
    change you power suppliers
    grocery challenge
    etc

    Anything you can do to tip the balance in your favour will make the journey shorter.
  • From my credit report I wrote to each company saying that I had just seen them on my file and could they please provide me with a signed copy of the agreement - there is a standard letter on here for this and you need to enclose a £1 statutory payment.

    two of my 14 creditors dropped out at that point.

    p.s. I only get online some evenings so sometimes a delay in replying
  • Thank you moongarden.

    I am deffinatly going to have a go at doing this on my own. There are a few concerns I have.
    • Should I cancel my current DMP now or wait until I have set up new arrangements with my creditors?
    • The majority of my debts are not with the original lender they are with debt collection companys. Will this result in them coming to my home?
    • Should I change bank accounts? The reason i ask this is because of the payday loans.
    What do you mean that 2 of your creditors dropped out?

    I have heard a people talking about snowballing debt, what is this? Would this be an option for me?

    I am very greatful for all your advice this site is brillant and made me realise I am not on my own.
    08/12/12 Day one of looking towards the future :T
  • Tixy
    Tixy Posts: 31,455 Forumite
    Hi
    Tiger56 wrote: »
    I am deffinatly going to have a go at doing this on my own. There are a few concerns I have.
    • Should I cancel my current DMP now or wait until I have set up new arrangements with my creditors? I would cancel as soon as you can - check the T&Cs of your DMP (online if you cannot find your agreement) - most require written notice of 1 month or 14 days.
    • The majority of my debts are not with the original lender they are with debt collection companys. Will this result in them coming to my home? Probably not, if they threaten a doorstop visit there is a template letter to send to state that you revoke their right to visit. If they do turn up then simply ask them to leave, they have no rights to take goods/enter your property etc, only bailiffs can do this, and that is only after a creditor has taken you to court to obtain a CCJ.
    • Should I change bank accounts? The reason i ask this is because of the payday loans. Yes. And then do not give the pd companies your new bank details. Best to offer to pay them by standing order.
    What do you mean that 2 of your creditors dropped out?

    I have heard a people talking about snowballing debt, what is this? Would this be an option for me? Snowballing is when people can afford more than their minimum payments and its about paying the most to creditors who charge the most interest. That doesn't work if on a DMP, as you cannot afford the contracted payments.

    I am very greatful for all your advice this site is brillant and made me realise I am not on my own.

    Just one thing - You state that you are useless at managing money, I would only recommend a self-managed DMP if you are certain you will be able to change this, you will need to keep on top of your money and outgoings and will need to ensure you pay all your creditors the agreed amount each month and ontime. If you think you will struggle to do this then it might be better to consider a managed charity/free DMP.

    If you decide to self-manage your own DMP then it might still be worth getting advice from one of the charities first - they'll help you put together an income & expenditure that your creditors are likely to consider reasonable - and therefore be most likely to accept your repayment proposals. They'll also explain about the importance of treating all creditors equally and provide you with a lot of useful template letters you can use.
    A smile enriches those who receive without making poorer those who give
    or "It costs nowt to be nice"
  • Thank you for the response, there is a great deal to take in.
    As you mentioned I stated that we are useless with money however we are more than determined than ever to change and I think that this is the best way to teach ourselves a lesson.

    We have has a look at the CAB page and found some fantastic information, I'm going to complete the step change forms online one evening this week with my husband as we need to agree with our budgets etc.

    Could anyone advise of a bank to join with poor credit history? We only want the most basic accounts. We are thinking of 1 account each and a separate account for bills only.

    Thank you all so much
    08/12/12 Day one of looking towards the future :T
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