DMP for me?

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Hi All

Have been reading various threads for a while but only now posting.

I am 23 and have £13,000 debt. Although I am managing to make payments regularly, above the minimum for credit cards, I am not reducing my debt any because I have hardly any money left for petrol and food, which then goes on the plastic again. It's a bit of a never-ending circle! Also, while I do spend some money on 'non-essential' items, if I had NO life at all I would go mad. I rent a room from a couple and if I had to spend all my spare time in it, I would have a very miserable existence. However, I don't really drink or go out clubbing so I don't spend much money on the non-essentials.

I have been investigating DMP and am wondering what your thoughts are on these. I'm a bit wary about the effect on credit, but then I don't want any more credit cards or debt! Obviously I am at the age when I might meet someone and want to settle down, but I'm not planning on buying a property in the near future.


What do you think??
Became Mrs Scotland 16.01.16 :heart:Became homeowners 26.02.16 :heart:Baby girl arrived 27.10.16 :heart:Baby boy arrived 16.09.2018
«1

Comments

  • hypno06
    hypno06 Posts: 32,296 Forumite
    Combo Breaker First Post
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    You are right in thinking that a DMP will affect your ability to get credit - it is likely to have that effect for 6 years, so even though you don't want to get a house now, you may want to in a few years time.

    That said, there are people on a DMP on this site who have managed to get a mortgage, so it is not impossible, just more difficult.

    I would suggest you go to the post for first time posters at the top of this board and put up your SOA on the makesenseofcards link. This will then give the DFW brigade the ability to make suggestions that are more appropriate for your own circumstances.

    Of course, it goes without saying, if you do decide to do a DMP, please do not go to one of the fee paying companies that advertise on the telly - use CCCS or National Debtline or one of the other free charities - that way everything you pay goes directly to the people you owe - not to some other moneygrabbing outfit.

    Good luck - you are in the right place here - and we even have parties online so that is your entertainment sorted!
    Successful women can still have their feet on the ground. They just wear better shoes. (Maud Van de Venne)
    Life begins at the end of your comfort zone (Neale Donald Walsch)
  • MYLITTLESISTERLOLA
    Options
    http://www.makesenseofcards.com/soacalc.html
    Use this to let us know exactly where your at, we'll all see if we can help with finding a way out. I believe theres always an answer and don't be too quick to go down the DMP route as this will be on your credit rating for a long time, Regards MLSL
    Busy mum of 3, so if my posts don't make sense or ask a silly question be patient:rotfl:
  • Deep_In_Debt
    Deep_In_Debt Posts: 8,579 Forumite
    Photogenic First Post First Anniversary Mortgage-free Glee!
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    If you are meeting your minimum repayments, I'm not sure you will be accepted on a DMP but as mylittlesisterlola (gosh, long user name!) says, post up your SOA and we'll all see if we can help you save money which you can put towards clearing your debts.
    Debt 30k in 2008.:eek::o Cleared all my debt in 2013 and loving being debt free :)
    Mortgage free since 2014 :)
  • MYLITTLESISTERLOLA
    Options
    If you are meeting your minimum repayments, I'm not sure you will be accepted on a DMP but as mylittlesisterlola (gosh, long user name!) says, post up your SOA and we'll all see if we can help you save money which you can put towards clearing your debts.
    Just call me MLSL:D
    Busy mum of 3, so if my posts don't make sense or ask a silly question be patient:rotfl:
  • psychopathbabble
    Options
    Hey all,

    thanks for the replies. i'm on the soa website now so will post that asap.

    my main problem for budgeting is that i don't know how much i get paid month to month as it depends on how much i work. I get a basic which is £801 take-home and i'm well over that on out-goings! it usually works out a lot more, but i can't guarantee the monthly take-home wage!
    Became Mrs Scotland 16.01.16 :heart:Became homeowners 26.02.16 :heart:Baby girl arrived 27.10.16 :heart:Baby boy arrived 16.09.2018
  • dancingfairy
    dancingfairy Posts: 9,069 Forumite
    Options
    I would only put down the basic in your SOA to be honest as, as you say the extra isn't guaranteed.
    You need to be trying to live within that - post up the SOA and I'm sure people will give suggestions.
    Good Luck
    df
    Making my money go further with MSE :j
    How much can I save in 2012 challenge
    75/1200 :eek:
  • psychopathbabble
    Options
    Statement of Affairs and Personal Balance Sheet

    Monthly Income Details
    Monthly income after tax................ 801
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 400
    Total monthly income.................... 1201


    Monthly Expense Details
    Mortgage................................ 0
    Secured loan repayments................. 0
    Rent.................................... 400
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 50
    TV Licence.............................. 0
    Satellite/Cable TV...................... 16
    Internet Services....................... 0
    Groceries etc. ......................... 120
    Clothing................................ 20
    Petrol/diesel........................... 100
    Road tax................................ 10
    Car Insurance........................... 35
    Car maintenance (including MOT)......... 10
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 7
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 10
    Haircuts................................ 10
    Entertainment........................... 0
    Holiday................................. 50
    Emergency fund.......................... 0
    Holiday Repayments to Friend............ 50
    Total monthly expenses.................. 888


    Assets
    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 10
    Car(s).................................. 2000
    Other assets............................ 0
    Total Assets............................ 2010


    No Secured Debt

    Unsecured Debts
    Description....................Debt......Monthly...APR
    Lloyds TSB Credit Car..........1734.65...34.81.....18.33
    Lloyds TSB Loan................5434.38...186.......18.8
    Halifax CC.....................1526......27.46.....21.9
    Car Payments to Famil..........2790......100.......0
    Lloyds TSB Overdraft...........1000......0.........19.3
    Capital One CC.................908.03....27.24.....16.61
    Barclaycard CC.................950.......21........17.9
    Total unsecured debts..........14343.06..396.51....-


    Monthly Budget Summary
    Total monthly income.................... 1,201
    Expenses (including secured debts)....... 888
    Available for debt repayments........... 313
    Monthly UNsecured debt repayments....... 396.51
    Surplus(deficit if negative)............ -83.51


    Personal Balance Sheet Summary
    Total assets (things you own)........... 2,010
    Total Secured debt...................... -0
    Total Unsecured debt.................... -14,343.06
    Net Assets.............................. -12,333.06


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




    I have based it on 1200 as I haven't taken home less than that in the 14 months I have been doing this job. I do pay more than the minimum on the credit cards, but wasn't sure if I should put my actual payment or minimum payments. Sorry!
    Became Mrs Scotland 16.01.16 :heart:Became homeowners 26.02.16 :heart:Baby girl arrived 27.10.16 :heart:Baby boy arrived 16.09.2018
  • MYLITTLESISTERLOLA
    Options
    Statement of Affairs and Personal Balance Sheet

    Monthly Income Details
    Monthly income after tax................ 801
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 400
    Total monthly income.................... 1201

    Monthly Expense Details
    Mortgage................................ 0
    Secured loan repayments................. 0
    Rent.................................... 400
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 50 too high can contract be reduced or payg
    TV Licence.............................. 0
    Satellite/Cable TV...................... 16 this could be switched to freeview
    Internet Services....................... 0
    Groceries etc. ......................... 120 this is a bit on the high side for 1 adult try the oldstyle board fo ideas could probably cut this in half
    Clothing................................ 20 non essential
    Petrol/diesel........................... 100 petrolprices.com re cheapest in your area
    Road tax................................ 10
    Car Insurance........................... 35 try quidco for cashbacj and confused.com, moneysupermarket for a cheaper quote
    Car maintenance (including MOT)......... 10
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 7
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 10
    Haircuts................................ 10
    Entertainment........................... 0
    Holiday................................. 50 you prop know what I'm going to say this is non essential
    Emergency fund.......................... 0
    Holiday Repayments to Friend............ 50 whats this for
    Total monthly expenses.................. 888

    Assets
    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 10 per month or in total
    Car(s).................................. 2000
    Other assets............................ 0
    Total Assets............................ 2010

    No Secured Debt

    Unsecured Debts
    Description....................Debt......Monthly...APR
    Lloyds TSB Credit Car..........1734.65...34.81.....18.33
    Lloyds TSB Loan................5434.38...186.......18.8
    Halifax CC.....................1526......27.46.....21.9
    Car Payments to Famil..........2790......100.......0
    Lloyds TSB Overdraft...........1000......0.........19.3
    Capital One CC.................908.03....27.24.....16.61
    Barclaycard CC.................950.......21........17.9
    Total unsecured debts..........14343.06..396.51....-

    Monthly Budget Summary
    Total monthly income.................... 1,201
    Expenses (including secured debts)....... 888
    Available for debt repayments........... 313
    Monthly UNsecured debt repayments....... 396.51
    Surplus(deficit if negative)............ -83.51

    Personal Balance Sheet Summary
    Total assets (things you own)........... 2,010
    Total Secured debt...................... -0
    Total Unsecured debt.................... -14,343.06
    Net Assets.............................. -12,333.06

    Created using the SOA calculator at www.makesenseofcards.com.
    Reproduced on Moneysavingexpert with permission.



    I have based it on 1200 as I haven't taken home less than that in the 14 months I have been doing this job. I do pay more than the minimum on the credit cards, but wasn't sure if I should put my actual payment or minimum payments. Sorry!

    If you have not enough left over a DMP will not be an option, if you do go down the DMP route your credit rating will be damaged for 6 years after you finnish paying, you will not be allowed any new credit and it could take you 10 or more years to pay this off so no car change, no mortgage....Is this really what you want, IVA's don't suit many people either and most companies will charge a £2.5k arrangement fee every year, Bankruptcy is severe but it may be another option. If you don't end up going down any of these routes your expenditure will have to reduce, you could try increasing you income, selling stuff on ebay, moving back in with parents ??, selling the car ?? Good luck and come back don't let me scare you off, Regards MLSL
    Busy mum of 3, so if my posts don't make sense or ask a silly question be patient:rotfl:
  • psychopathbabble
    Options
    I put holiday in by accident twice... I am paying my friend off for a holiday I took earlier this year!

    Petrol... I drive to work, and use petrolprices.com already.

    Food... this is an estimate, but I am trying to eat healthily, as I was getting anaemic. I used to spend less than £20 a week, but was living on pasta. Am trying to eat more fruit and veg, but finding it's costing more. Have been looking for a farmers shop or something nearby. There is no aldi, or lidl, as I live in an 'affluent' area so there is a waitrose instead... which I don't use!!

    That is the cheapest insurance quote... I could go third party, fire and theft instead of comp but don't want to lose another 2k on my car if anything happens (long story regarding my previous car which cost me £2000 and over £1000 in repairs in a year and I had to scrap it).

    I am cancelling sky as soon as my contract is up, I got it in november last year as I was planning on staying in the house I was in at the time and wanted internet, but had to move out after 2 months and am stuck with the sky although I got it down as cheap as possible and have sold the box.

    am going to reduce phone bill as soon as i can. have discovered that saynoto0870.com now so any time i need to call my bank or whoever, i use that and ring the landline equivalent so it's free.

    Can't move in with parents, as working 100 miles away from home... if I quit my job and move home, I will be earning about £800 a month max!

    This is worked out on an average month, but I do usually take home more.... this month it was £1650 take home.

    I own a whole £10 in bonds in total, I think my mum got some deal when I was a tiny girl.

    I think I'm just in a bit of bother at the moment, because of lots of things happening at once. I'm still meeting repayments, paying at least £250 on credit cards every month which is more than the minimum. I guess I just need to cut down even more on the wasteful spending, and learn some discipline with both cash and card... card I lose track of what it's been used for, cash I spend if it's in my purse.

    I am looking for a second job, BUT (here is the excuse) I work 6 days on irregular shift work, 3 days off, so it's difficult finding a job that fits around the stupid hours that I work.

    I only have myself to blame, I know, it just gets frustrating watching others swan off on holiday, buy this that and the other, go out drinking, and I can't!
    Became Mrs Scotland 16.01.16 :heart:Became homeowners 26.02.16 :heart:Baby girl arrived 27.10.16 :heart:Baby boy arrived 16.09.2018
  • Gemmzie
    Gemmzie Posts: 14,876 Forumite
    Options
    I think your too close to breaking even to be eligible for a DMP in the current climate, especially as there's some cuts you could make to your SOA so you'd break even. Sorry.

    But the good news is, you should be able to tart and snowball. Have you got any other credit cards which are empty?
    No longer using this account for new posts from 2013
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