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    • rattlesnake2018
    • By rattlesnake2018 10th Feb 18, 12:10 PM
    • 10Posts
    • 0Thanks
    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 2
    • January2015
    • By January2015 12th Feb 18, 10:13 PM
    • 1,902 Posts
    • 4,946 Thanks
    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?
    Originally posted by rattlesnake2018
    I can't help with clothes budget. Our children are all grown, so it's just me and my other half. We budget £40 p/m for clothing. We tend to wait for sales and buy clothes and shoes then, but I appreciate it's going to be far more expensive with growing children.

    You haven't included any budget for life insurance. Do you have any - if not you should think about getting some.

    I might have missed it, but did you budget for Christmas and birthdays? With kids you have to have a budget category for this.
    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
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