Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • rattlesnake2018
    • By rattlesnake2018 10th Feb 18, 12:10 PM
    • 10Posts
    • 0Thanks
    rattlesnake2018
    DMP - help needed
    • #1
    • 10th Feb 18, 12:10 PM
    DMP - help needed 10th Feb 18 at 12:10 PM
    I've come to the realisation I need to sort out my debts as I cannot afford my monthly repayments. To cut a long story short, I have debts of £34,300 over 7 credit cards and 2 bank overdrafts.

    I have completed an expenditure sheet, set up a new basic bank account at Santander (cannot believe you can open an account online!) and aim to run my own DMP. I have prepared letters to send to my 9 creditors and have arranged for my wage of £1202 to go to my new Santander account (although this months wage will go into my current account at Natwest where I have an overdraft). I aim to transfer this to Santander as soon as it hits my account on payday (28 Feb).

    So questions...

    1. I have worked out I can realistically afford to pay my 9 creditors a sum of £225 p/m on a pro-rata basis. This will increase in 6 months as I will get an additional £150 following a bump of income at work. Shall I include this expected bump in the letter to the creditors as an incentive to accept my offer?

    2. I have £644 in my account to last me until 28 Feb. I need to pay 4 of my creditors the minimum monthly charge which comes to £420 which is impossible. Shall I still make a nominal payment of £10 to each creditor this month or make no payment at all?

    3. I intend to start paying my creditors the pro-rata figure I have worked out on 1 March via direct debit and intend to send out my letters on 28 February. Is this the right way to go about things?

    4. As I have two bank overdrafts can the banks ask for their money up front? The overdrafts total £3600. If they do, what are my options?

    5. When working out my expenditure sheet I have worked out I have £249 disposable income. I intend to offer £225 p/m - is this right or do I have to offer £249 p/m towards the DMP?

    I would appreciate any help as I now begin my long journey to freedom!
Page 1
    • rattlesnake2018
    • By rattlesnake2018 10th Feb 18, 12:13 PM
    • 10 Posts
    • 0 Thanks
    rattlesnake2018
    • #2
    • 10th Feb 18, 12:13 PM
    • #2
    • 10th Feb 18, 12:13 PM
    By the way, I should include I have included my partner's wage on the expenditure sheet as she pays towards the bills etc and we are left with £249 as disposable income jointly.

    We also have a car each (mine is worth £2250 and my partner's is worth £2000). We need these cars for travelling to work, taking our two young kids to school etc. I assume the DMP won't mean I have to sell both cars?
    • Grumpelstiltskin
    • By Grumpelstiltskin 10th Feb 18, 12:25 PM
    • 2,211 Posts
    • 2,267 Thanks
    Grumpelstiltskin
    • #3
    • 10th Feb 18, 12:25 PM
    • #3
    • 10th Feb 18, 12:25 PM
    Ok So you really need a basic bank account ie. one with no overdraft.

    Also it would help if you put your SOA up ( see sticky at the top of the forum )
    then people can check if your figures are correct.

    A DMP is a voluntary agreement s it isn't like bankruptcy so no one is going to tell you to sell your cars.

    It is important you have everything in order before you start your DMP, nothing is going to happen if you wait another month

    .It could fail at the first problem you have, if you have agreed to pay more than you can afford.
    • zenshi
    • By zenshi 10th Feb 18, 1:13 PM
    • 979 Posts
    • 1,984 Thanks
    zenshi
    • #4
    • 10th Feb 18, 1:13 PM
    • #4
    • 10th Feb 18, 1:13 PM
    Do you have any savings in case of emergencies?

    Donít cut it so close to the bone. Give yourself some wiggle room
    LBM.....sometime in 2013 £27,056. 10 creditors
    Dec 17......£18,070.....7 creditors left 33% paid

    £26,200 on interest only part of mortgage (July 16)...will chip away £23,536
    £49,200 repayment mortgage ( July 16) £45,386
    • rattlesnake2018
    • By rattlesnake2018 10th Feb 18, 1:41 PM
    • 10 Posts
    • 0 Thanks
    rattlesnake2018
    • #5
    • 10th Feb 18, 1:41 PM
    • #5
    • 10th Feb 18, 1:41 PM
    Thanks for the comments thus far.

    1. I have this morning set up a Basic Account at Santander and will get wages put into this account and set up 9 direct debits to my creditors.

    2. It is good to know about the cars and how I cannot be forced to sell them as I cannot do without both cars.

    3. My partner has just over £5000 in a savings account and if the worst did ever happen and I needed extra cash, my parents would undoubtedly help me out.

    I just need clarification of whether I pay £10 towards my minimum payment for my 4 credit cards this month or shall I not pay anything?

    Many thanks.
    • Grumpelstiltskin
    • By Grumpelstiltskin 10th Feb 18, 2:00 PM
    • 2,211 Posts
    • 2,267 Thanks
    Grumpelstiltskin
    • #6
    • 10th Feb 18, 2:00 PM
    • #6
    • 10th Feb 18, 2:00 PM
    Don't pay anyone yet, the worse thing you can do is panic,

    The link to the SOA calculator

    http://www.stoozing.com/calculator/soa.php

    Format for MSE

    I know you w0ant to do the DMP yourself but have you contacted one of the free charities for their advice?
    • rattlesnake2018
    • By rattlesnake2018 10th Feb 18, 2:34 PM
    • 10 Posts
    • 0 Thanks
    rattlesnake2018
    • #7
    • 10th Feb 18, 2:34 PM
    • #7
    • 10th Feb 18, 2:34 PM
    Here is my expenditure sheet.

    Please note that I have included my partner in this expenditure sheet. We pay my parents £1000 which covers rent to live with them and all household bills.

    http:// docdro.id/ZVXC7Vg
    • rattlesnake2018
    • By rattlesnake2018 10th Feb 18, 2:35 PM
    • 10 Posts
    • 0 Thanks
    rattlesnake2018
    • #8
    • 10th Feb 18, 2:35 PM
    • #8
    • 10th Feb 18, 2:35 PM
    Oops - take the space out after http:// above to hit the link.
    • Grumpelstiltskin
    • By Grumpelstiltskin 10th Feb 18, 3:44 PM
    • 2,211 Posts
    • 2,267 Thanks
    Grumpelstiltskin
    • #9
    • 10th Feb 18, 3:44 PM
    • #9
    • 10th Feb 18, 3:44 PM
    If you format your SOA for MSE you should be able to paste it.
    • rattlesnake2018
    • By rattlesnake2018 11th Feb 18, 7:54 PM
    • 10 Posts
    • 0 Thanks
    rattlesnake2018
    Just a quick couple of questions.

    1. Shall I pay a nominal fee of £10 this month to four of my creditors who are seeking a minimum payment on my CC or shall I leave it?

    2. I've worked out my expenditure again and it appears I have £261 disposable income. Do I need to offer all of this on my DMP as I only intended to offer £225?

    Thanks.
    • sourcrates
    • By sourcrates 11th Feb 18, 8:04 PM
    • 13,204 Posts
    • 12,628 Thanks
    sourcrates
    Just a quick couple of questions.

    1. Shall I pay a nominal fee of £10 this month to four of my creditors who are seeking a minimum payment on my CC or shall I leave it?

    2. I've worked out my expenditure again and it appears I have £261 disposable income. Do I need to offer all of this on my DMP as I only intended to offer £225?

    Thanks.
    Originally posted by rattlesnake2018
    Its up to you.

    Why not just take time out here.

    Nothing happens quickly in debt collection, you have many months, maybe years before court action is likely, just take a few months breathing space here.

    A DMP is an unregulated, gentlemens agreement to repay your debt at a rate you can afford, if your doing it yourself, then there are no rules, you decide what happens.

    There is no risk to cars or property, you are way overthinking this.

    You also need an emergency fund saved up, that;s your first priority.
    Last edited by sourcrates; 11-02-2018 at 8:09 PM.
    I'm a Board Guide on the Debt-Free Wannabe, Credit File And Ratings, and
    Bankruptcy And Living With It, boards. "I volunteer to help get your forum questions answered and keep the forum running smoothly".
    Board guides are not moderators and don't read every post. If you spot an abusive or illegal post then please report it to forumteam@moneysavingexpert.com. Any views are mine and not the official line of MoneySavingExpert.com.

    For free debt advice, contact either : Stepchange, National Debtline, or, CAB.
    For Free Legal advice see : http://legalbeagles.info/
    • Pixie5740
    • By Pixie5740 11th Feb 18, 8:55 PM
    • 11,664 Posts
    • 16,412 Thanks
    Pixie5740
    I've had a look at your SOA although it would really help if you filled in the one of stoozing.com and formatted it for MSE.

    A couple of things that stand out are your rent at £1,000 pcm which is high given your combined income is £2,372 a month. You haven't included anything for council tax, water, electricity or gas. Are these things included in your rent which would make the £1,000 seem more reasonable.

    £80 a month on a landline and the internet is high. £80 on satellite tv is also a lot to be paying out even if you weren't in debt. Does that £80 also include your tv licence because you currently have £0 next to that?

    There's scope to reduce the amount you spend on food & housekeeping. £450 a month on food, toiletries and cleaning products is high especially when you're also paying out £18 for school meals, and £40 for meals at work.

    I would expect that on your income you would be entitled to at least child benefit but that is also showing as £0.
    Last edited by Pixie5740; 12-02-2018 at 8:29 AM. Reason: typo
    • rattlesnake2018
    • By rattlesnake2018 12th Feb 18, 1:14 AM
    • 10 Posts
    • 0 Thanks
    rattlesnake2018
    £1000 includes accommodation and ALL bills but I pay for Sky TV and broadband. That's my only spend in terms of hobbies/recreation. I don't smoke or drink.

    Food/housekeeping is difficult to guesstimate. I have two young children (4 and 5) so I thought £110 p/w is reasonable but I do think it is much less than this.

    I do believe I get child benefit. I'll ask the Mrs to check tomorrow. Good point actually.
    • rattlesnake2018
    • By rattlesnake2018 12th Feb 18, 1:17 AM
    • 10 Posts
    • 0 Thanks
    rattlesnake2018
    @sourcrates

    Thanks for your post. I was unsure if I would get harassed for missing a minimum payment this month.The fear was getting a knock on the door but it appears this won't happen which is good news.

    We have an emergency fund saved up as the Mrs has a tad over £5000 in savings albeit I would like this number to be a bit higher if I'm being honest.
    • Mumoffourkids
    • By Mumoffourkids 12th Feb 18, 6:22 AM
    • 407 Posts
    • 1,717 Thanks
    Mumoffourkids
    £1000 includes accommodation and ALL bills but I pay for Sky TV and broadband. That's my only spend in terms of hobbies/recreation. I don't smoke or drink.

    Food/housekeeping is difficult to guesstimate. I have two young children (4 and 5) so I thought £110 p/w is reasonable but I do think it is much less than this.

    I do believe I get child benefit. I'll ask the Mrs to check tomorrow. Good point actually.
    Originally posted by rattlesnake2018
    Just a point on food/housekeeping. I have six children, two of which are in nappies still and I have a budget of £100 per week for everything. That also includes packed lunches for four of the kids and lunches for me st work. So I definitely think you can bring this figure down. I meal plan and only buy what I need for that weeks meals. I also bake cakes and puddings, freeze any leftovers or take them to work with me for lunches and batch. Ok. I also shop online so I can see how much I am spending. I tend to spend between £60 and £70 a week on a big shop and then top up with bread, milk and fruit during the week. I donít buy anything else when I top up though. At one point I had to learn to live on that budget as I truly didnít have any other money, now I have more money available but I still donít go over my budget.
    Total debt Dec 2017 £23090.83 Feb 2018 £7675.3966.76% paid
    Debt no 3 £600/£1000
    Debt no 2 £0/£412.05 paid Feb ~ Debt no 1 £0/£593.29 paid Jan 2018
    Emergency fund £387.50/£600 ~ Total Savings £1036.29
    PAYDOBX2018 #97 £10114.82/£12,000
    • Pixie5740
    • By Pixie5740 12th Feb 18, 8:49 AM
    • 11,664 Posts
    • 16,412 Thanks
    Pixie5740
    £1000 includes accommodation and ALL bills but I pay for Sky TV and broadband. That's my only spend in terms of hobbies/recreation. I don't smoke or drink.
    Originally posted by rattlesnake2018
    £80 is still a lot to pay for Sky. Check out the Sky Haggling Success Stories thread on the Phone & TV sub-forum.
    • January2015
    • By January2015 12th Feb 18, 9:59 AM
    • 1,900 Posts
    • 4,946 Thanks
    January2015
    £80 is still a lot to pay for Sky. Check out the Sky Haggling Success Stories thread on the Phone & TV sub-forum.
    Originally posted by Pixie5740
    £80 + £80 = £160 p/m for internet, TV and phones. That's astronomical

    Your vehicle costs look very high as well. Obviously different things factor in for different people but they do look high.

    Food/toiletries bill could be practically halved if you really try. Plan your meals/shopping trips. Shop at Aldi or Lidl

    What is £80 p/m sundries/emergencies for? Yes you need a sundry fund but do you really need this much?

    Definitely room to squeeze your budget
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    Xmas 2017 £1 p/day challenge No. 20 - £420/£730
    Make £10 p/day Feb £74.31, Mar £664.37 Apr £40
    • rattlesnake2018
    • By rattlesnake2018 12th Feb 18, 7:51 PM
    • 10 Posts
    • 0 Thanks
    rattlesnake2018
    @ January2015 - thanks for your comments. I want a expenditure sheet that looks realistic to creditors so this is really helpful.

    I pay £80 for Sky TV, £35 for fibre optic broadband and £40 for two mobile contracts (one for the wife and one for me) so it is £155 all in. Take into account my wife and I don't smoke/drink and don't really spend money on hobbies or subscriptions. Is that deemed too high?

    Vehicle costs is how much I pay. It is for both my wife and I. Tax is £300 and insurance is £840 for the year. Monthly fuel and parking for both of us combined is £190 - to get us to and fro work and to go shopping and to functions etc.

    Food/toileteries is less I guess. This was more a guesstimate than proper working out. Clothes is a difficult one as we don't shop monthly for clothes so I just put down £60 for two adults/two kids.

    I'm not sure what to put down as sundries. Could I just leave this as £0 (is this what I put aside for emergencies)?
    • January2015
    • By January2015 12th Feb 18, 9:01 PM
    • 1,900 Posts
    • 4,946 Thanks
    January2015
    @ January2015 - thanks for your comments. I want a expenditure sheet that looks realistic to creditors so this is really helpful.

    I pay £80 for Sky TV, £35 for fibre optic broadband and £40 for two mobile contracts (one for the wife and one for me) so it is £155 all in. Take into account my wife and I don't smoke/drink and don't really spend money on hobbies or subscriptions. Is that deemed too high?

    Vehicle costs is how much I pay. It is for both my wife and I. Tax is £300 and insurance is £840 for the year. Monthly fuel and parking for both of us combined is £190 - to get us to and fro work and to go shopping and to functions etc.

    Food/toileteries is less I guess. This was more a guesstimate than proper working out. Clothes is a difficult one as we don't shop monthly for clothes so I just put down £60 for two adults/two kids.

    I'm not sure what to put down as sundries. Could I just leave this as £0 (is this what I put aside for emergencies)?
    Originally posted by rattlesnake2018
    Hi

    Definitely shop around for your tv/internet/phone/mobile costs. Then when you find a bargain, negotiate with your existing provider to see if they will match, or beat, your quote. If they won't, then switch. However, if that's what you are paying then put it in the budget - it may get queried but possibly not.

    I pay £65 p/m for landline (unlimited calls for local, national and mobiles provided they are less than 1 hour per call), 150mbps broadband, TV package, and 2 mobiles - each with 5gb data, unlimited texts and messages.

    Sundries - I always put £25 per month. That seems to be acceptable to creditors. I definitely would put something in this category, but I just thought £80 looked high

    Vehicle costs - if that's what they are, then that's what you put in the budget. It looked high to me, but then we have a car which is £20 a year for car tax so that reduces our vehicle annual costs.

    We don't smoke or drink but I did add a pet we don't have Pet food and pet insurance gave us flexibility. If you make your budget too tight you will fail your DMP. For me, the dog we don't have gives us wriggle room.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k I'm driving it down
    £1k emergency fund (member #84) £1k/£1k
    Xmas 2017 £1 p/day challenge No. 20 - £420/£730
    Make £10 p/day Feb £74.31, Mar £664.37 Apr £40
    • rattlesnake2018
    • By rattlesnake2018 12th Feb 18, 9:30 PM
    • 10 Posts
    • 0 Thanks
    rattlesnake2018
    That's very helpful indeed.

    I like the 'pet' idea which could in effect help knock down my Sky/phone deal somewhat - and it wouldn't be a lie as we do have pet fish but I didn't think about putting that down on my expenditure sheet. The work meals could also be cut down to £0 I guess and I can knock the food down to a more realistic £350 as that was a pure guesstimate on my behalf.

    I'm still unsure about clothes though. How do you work out the cost over a month for clothes?
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,833Posts Today

9,107Users online

Martin's Twitter