To DMP or not to DMP

ringo35

Hi folks, totally new to all this so please bear with me. I have managed to get myself into a lot of debt with payday loan companies :mad:. I owe 6 different companies around £1700 in total. I have been trying to service these debts for the past 8 months (by rolling over the loan and just paying the interest ), but i can't carry on doing this anymore as i am falling behind with some priority bills. Anyway my question is this, i have looked into a dmp with cccs and the figures quoted seem reasonable and affordable but i have heard many conflicting stories about them and that the first payment is a fee charged by cccs??? I could try to negotiate with these companies myself but i dont think i have the fight in me anymore. I also have an unsecured loan with Welcome finance :mad: for £2000. I cannot afford to keep up repayments on any loans anymore and don't know what to do for the best. I'm thinking maybe a dmp is the best option...any suggestions would be appreciated. Many thanks for taking the time to read read my badly phrased post .

savingholmes

Hello and welcome...

Facing up to the problem is a good start... It might be worth you using this link http://www.makesenseofcards.co.uk/soacalc.html to put in all your income, outgoings, debts and assets - then reformat it for mse and copy and paste it on here. We can then offer you some advice on where you can perhaps make savings or cut backs... Once you have got some idea on where you could increase your income and cut your outgoings you will have a better feeling of whether a dmp is really the right solution in your case. It may be by budgeting differently or getting a second job or making relatively small changes that add up that you can meet your obligations without one.

If you do need a dmp - then talk to cccs, national debtline or payplan.... There is also a dmp supporters thread

Hope that helps

chevalier

Not sure where you got the information about the first months payment being CCCS fee from, I have never heard anyone say this. Payplan, CCCS, are both free organisation.s However I would suggest as above that doing a Statment of Affairs may help to show you and us how you are spending your money, so that you can cut back enough to service these payments
chev

ringo35

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 1
Number of children in household......... 0
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 960
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 960

Monthly Expense Details
Mortgage................................ 0
Secured loan repayments................. 0
Hire Purchase (HP) repayments...........
Rent.................................... 350
Management charge (leasehold property).. 0
Council tax............................. 70
Electricity............................. 30
Gas..................................... 50
Oil..................................... 0
Water rates............................. 10
Telephone (land line)................... 15
Mobile phone............................ 10
TV Licence.............................. 10
Satellite/Cable TV...................... 10
Internet Services....................... 7.5
Groceries etc. ......................... 50
Clothing................................ 15
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 5
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 0
Entertainment........................... 50
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 712.5


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


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 350......(15).......0
Total secured & HP debts...... 350.......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
welcome loan...................2000......109.......0
wonga payday...................400.......80........0
pundstillpayday................400.......400.......0
aqua cc........................250.......10........0
vanquis visa...................250.......10........0
wageday advance................250.......50........0
early payday...................120.......30........0
oasis payday...................200.......60........0
uncle buck payday..............200.......60........0
Total unsecured debts..........4070......809.......-


Monthly Budget Summary
Total monthly income.................... 960
Expenses (including HP & secured debts). 712.5
Available for debt repayments........... 247.5
Monthly UNsecured debt repayments....... 809
Amount short for making debt repayments. -561.5

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -350
Total Unsecured debt.................... -4,070
Net Assets.............................. -4,070

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

savingholmes

Hi looking at your soa - I think unless you can move your debt to an interest free card like virgin or mbna or halifax (where the minimum repayment is low) then you probably will need a dmp...

the good news though is that if you do go on a dmp and manage to get your interest frozen or reduced - if you did repay at say £200 per month - you would be debt free within 2 years which would be good going....

ringo35

O.k, thanks for the advice. Credit rating is very poor at the moment so an interest free card is unlikely. Think I may have to go down the DMP route.

fatbelly

Hi

I think a dmp is going to be the right option (CCCS, Payplan, CAB or d-i-y) but I'm not sure your soa is accurate and suggest you keep a spending diary to sort out how much you can afford each month without getting into difficulty.

The food etc line is for food, newspapers, cleaning materials, fags, booze - a sort of 'anything you buy at Tesco' line. Are you really spending only £50 per month?
What are you buying on HP at £15 per month?

ringo35

Yeah you might be right, it could be more like £100, although i did put £50 in entertainment section (beer). Now you mention it i dont have anything on HP, it should £15 a month for £350 loan. Might have re-do this.....told you i was new!!

fatbelly

ringo35 wrote: »

Yeah you might be right, it could be more like £100, although i did put £50 in entertainment section (beer). Now you mention it i dont have anything on HP, it should £15 a month for £350 loan. Might have re-do this.....told you i was new!!

You can just go back and edit post #1