Can someone explain....

d_brat81

How Payplan works and if they are good?

Its just that when I looked at the IE the Expenditure is alot more than the Income and that doesn't include most of the debts!!

Just wondered would they reject an application because the Outgoings was more than earning?

Thanks in advance.

GeorgeUK

I've no experience with payplan but from what i have read, you need to have something to offer your creditors before a DMP can be set up.

If you take into account purely the living costs and bill but not any debt payments (other than those secured against a property or HP debt), do you have anything left over? If you do then it may be possible to set up a DMP.

Have you posted a SOA here yet?
http://www.makesenseofcards.com/soacalc.html

d_brat81

Hi George

Yes I have in another thread http://forums.moneysavingexpert.com/showthread.html?t=1096765

Thats what I was afraid of because we were getting help from the local Law Center and he said things don't look good....

So basically we are 6 feet under :(:( hopeless..

Thanks for replying.

fermi

Believe me, nothing is ever hopeless.

As Martin says "I've never yet heard of someone with debts so bad there isn’t a path through them;"

Have you spoken to CCCS or Payplan or the other organizations here?:

Non-profit Debt Counsellors' List

d_brat81

If what the previous poster says is true (as the money adviser at the Law Center said the same) then it is because all we get is threatening letters, phone calls, and people knocking on the door...

Dh finally submitted the paperwork to Payplan and its in consideration but like I said the money adviser at the Law Center had the same info and said he could do nothing as we don't have money left over to make arrangements....

So its nerve racking.

GeorgeUK

From what you've posted, you have approx £160 to pay towards your debts. (I take it the car isn't included in that as it is HP?)
Have you payed more than 50% of the HP agreement on the car?

I'm a little surprised that nobody commented on your SOA, so i'll run through a few things that are usually worth checking.

Council tax............................. 106
If paying over 10 months, can you ask to pay over 12?

Electricity............................. 26
Gas..................................... 33
Check the comparison sites to see you are getting the best deal. (uswitch, moneysupermarket)

Mobile phone............................ 30
PAYG?

Telephone (land line)................... 24
Satellite/Cable TV...................... 17
Internet Services....................... 17
Are these combined in a package? Would it be cheaper?

Groceries etc. ......................... 150
Have a look on the old style board for meal plans etc. Have you moved down a brand? (shops own)

Clothing................................ 35
Every month - this is a bit high. Can you cut down on this?

Petrol/diesel........................... 155
ouch!! Have you looked at alternative forms of transport?

Car Insurance........................... 73
Again, i'd look at the comparison sites to see i was getting a good deal.


Hopefully a few ideas that may lead to some savings. Not sure if there is a minimum amount that is required before one of the debt charities can assist, but you should be able to write to your creditors yourself if they can't. There are quite a few on the board doing a self managed DMP and all the information you will need is in here somewhere.

d_brat81

The car is only 1 year into the HP.

Council tax would ask about that - Thank you.

As for gas & electric I would use the comparison sites as I don't burn gas all day just on for 2 hours per day when its really cold out and for cooking. Electric light on in whatever room we are in at that time... so don't understand why its so much but as I was told its the type of property we live in. - Thank you again.

One question though, the bills did come up cheaper by a company I've not heard of before... Have you ever used a company like that? Last time I did that and went with Utility Warehouse it was worse than one of the Big 6's....

The mobile is for 2 phones and is on contract for another 18months or so. But would definitely be changing once its up.

The tv/broadband is with Sky and is at the cheapest package we could get in this area. I would cut sky altogether and opt for Freeview but once again it doesn't work in this area We're kind of in the country so we don't get all the deals i.e Sky Broadband would be free but because I am too far from their tower we can't get it...

I had some problems with them and they have given me 70 credit and free 6 months unlimited so its just line rental and the odd 08 charge to pay.

I am however looking at TalkTalk once the contract has ended as the phone/broadband package is much cheaper.

Clothing is not 35 a month it goes into a savings for my daughter so she can have her boots for her foot and whatever she needs clothing wise but that has been reduced to a tenna.

Dh works about 47 miles away (we moved) so thats where the costs comes up and that petrol is for 2 cars but one is currently being sold.

Car insurance is for 2 cars as well, 1 car is 296 a year and the other is 484 (at the top of my head) I got the quotes through confused and compare it with comparethemarket.

Thank you for taking the time to assist. I have taken onboard all your comments and would be working on them.

I did write to the creditors myself initially (using Debtline Letters) and thats when the interest rates sky rocketed and the threats etc started. None of them have acknowledged my letters or IE or my token payment of 1. And the local Law Center & CAB said there is nothing they can do....

I am working on cutting down and cutting out some things (done groceries, stopped using the phone except in dire need but since most are in contract it's proving to be a task....

You're right about having 160 for debts, must have added it wrong on the Payplan form because its manual calculation...

Thank you for restoring some hope

GeorgeUK

For the utilities - i'm afraid i've no idea. Not seen any other nightmare stories on posts so hopefully others will be able to comment. If you have a tumble dryer, i know this is supposed to use alot of electricity so if you can minimise its use it might help. Also never leave anything on standby.

For travel to work for DH, is it possible to get a train?

Hopefully payplan will be able to step in and stop the interest and any charges soon.

d_brat81

No don't own a dryer its racks and radiators for me...

We live in such a secluded area that buses run infrequently and its 9 by cab to get to the train station and another for the train and then a bus to his work. We looked into it and it was working out cheaper by car.... The area looked good before but when you are in a rut its not so good at all because we're miles away from everything

I started unplugging and switching off stuff when not in use ages ago but I've not seen the bills go down.

I was reading in another thread about debt training? Is this some sort of training for those in debt as when I googled it the results were for housing officers etc...

I think a course like that would be ideal.

GeorgeUK

I think the debt training is to be a councillor or something.

Hopefully others can come up with other suggestions but there are templates available if you are getting harrassed on the phone. You can request that all correspondence be in writing only.

Did you send off the cca requests that were mentioned in your other thread?

d_brat81

GeorgeUK wrote: »

I think the debt training is to be a councillor or something.

Hopefully others can come up with other suggestions but there are templates available if you are getting harrassed on the phone. You can request that all correspondence be in writing only.

Did you send off the cca requests that were mentioned in your other thread?

Yes I did, next week the 12 days will be up. I have found the templates thanks.

Will get them posted off later on today.

Cheers.