DMP/Directly contacting creditors

lincsdan86

As Im sure some people are aware, my partner is due to give birth at Christmas, although this is a very exciting time for us, it does mean that from the beginning of December she will be on maternity allowance and her wages will be halved. We have done so rough calcs and we "think" we can manage on the reduced amount but I was wondering would it be worth her going into a DMP to reduce the amount of money she has to pay as we are also looking to rent privately and her living costs will also increase. Or would it be worth writing to her creditors to explain that she will be on maternity allowance and will not be able to make huge repayments?

Any advice would be great.

lincsdan86

shameless bump :-D

Ex-Spendaholic

Sorry I'm not much use to you but as no-one else has replied yet, I thought I would.

My suggestion would be for you both to save as much money as possible between now and Christmas. Will she receive only SMP or is there a portion of the maternity leave on full pay? Put any extra money you have into an isa and then once the baby arrives use it towards your shortfall.

I take it you are aware of the £500 maternity grant which can help you pay for nursery equipment etc. It of course is means tested.

Also once the baby arrives there will be other money coming in - child benefit and also tax credits.

The situation may not be as bad as it seems. When you are not at work then you aren't using your car as much so don't use as much petrol, you don't end up going out for lunches and you aren't buying work clothes. In addition she'll have more time on her hands to do things like cook meals from scratch rather than dashing into the likes of M&S for overpriced food.

If you can manage without a DMP I would. Look at transferring debts to 0% etc.

I wish you both loads of luck.