DMP Questions?

bob5

Hello

I am in debt by about 33,000

I am in the process of PPI reclaiming but not got much back so far !

I am considering DMP but wanted to ask that if you go through this process will this show up on your credit report? If so how long for? Will this stop me getting a new mortgage next year? ( reason for asking about new mortgage is i am planning to rent my house out and get a new mortgage with my boyfriend, but cant be done until next year until he has his 3 years books )

~Beanie~

It will show up on your credit report because you will be making less than the minimum payments to your creditors and they will report that you have an arrangement to pay.

This will have a detrimental effect and will possibly prevent you from getting a mortgage. Saying that, even if you don't enter into a DMP, £33,000 of outstanding debt is also likely to stop you getting a decent mortgage.

I would forget about the mortgage until you have tackled the debts.

GeorgeUK

Yes, it will show up on your credit file - not that you are in a DMP, but that you are not maintaining your minimum payments.

You could post up a statement of affairs and we could see if there are any areas of your expenditure where you can make savings.
http://www.makesenseofcards.com/soacalc.html

It won't stop you getting a mortgage usually, but you won't be able to take advantage of some of the better offers.

Jakey410

Hi bob5. I have just entered a DMP (self administrated) and I was told by my creditors that this will show up on my credit file until the debt has been paid, then for 6 years after this. I was also told that this may cause a problem if I wanted to remortgage. What shows on the credit file is that you have entered a payment plan, but it still adversly affects it.

bob5

Statement of affairs

Mortgage 745.00
C Tax 115.00
Water 37.50
Elec 81.00
Gas 145.00
TV Livence 20.50
Sky 21.50 ( just scrapped this although have to pay for next 3months)
Car Ins 38.38
Content & building ins 38.76
Life ins, critical illness 38.76
BT 42.00
Mobile 35.00

Dinner Money 40.00
Cubs 8.00
Shopping 200
Petrol 40.00

The above monthly bills are quite high as i was in arrears.

~Beanie~

bob5 wrote: »

Statement of affairs

Mortgage 745.00
C Tax 115.00
Water 37.50
Elec 81.00
Gas 145.00
TV Livence 20.50
Sky 21.50 ( just scrapped this although have to pay for next 3months)
Car Ins 38.38
Content & building ins 38.76
Life ins, critical illness 38.76
BT 42.00
Mobile 35.00

Dinner Money 40.00
Cubs 8.00
Shopping 200
Petrol 40.00

The above monthly bills are quite high as i was in arrears.

You haven't included your income or any debts on your SOA above. Your BT and mobile bills seem high and could probably be cut.

Try filling in a proper SOA so we can give better advice. Youc an find the calculator here: http://www.makesenseofcards.com/soacalc.html

bob5

[tt]Statement of Affairs and Personal Balance Sheet
Household Information
Number of adults in household........... 1
Number of children in household......... 1
Number of cars owned.................... 1
Monthly Income Details
Monthly income after tax................ 2092
Partners monthly income after tax....... 0
Benefits................................ 110
Other income............................ 140
Total monthly income.................... 2342
Monthly Expense Details
Mortgage................................ 745
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 115
Electricity............................. 81
Gas..................................... 145
Oil..................................... 0
Water rates............................. 37.5
Telephone (land line)................... 42
Mobile phone............................ 35
TV Licence.............................. 20.5
Satellite/Cable TV...................... 21.5
Internet Services....................... 0
Groceries etc. ......................... 200
Clothing................................ 10
Petrol/diesel........................... 40
Road tax................................ 17.5
Car Insurance........................... 38.28
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 8
Medical (prescriptions, dentist etc).... 7.4
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 11.78
Life assurance ......................... 38.28
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 10
Entertainment........................... 40
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1713.74

Assets
Cash.................................... 0
House value (Gross)..................... 225000
Shares and bonds........................ 0
Car(s).................................. 2000
Other assets............................ 0
Total Assets............................ 227000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 151000...(745)......0
Total secured & HP debts...... 151000....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
barclaycard....................6169......0.........0
Alliance & Leicester...........1343......0.........0
Virgin Mbna....................10636.....0.........0
First Direct...................3000......0.........0
Hitachi........................1621......0.........0
Tesco..........................5000......0.........0
Egg............................9128......0.........0
Total unsecured debts..........36897.....0.........-

Monthly Budget Summary
Total monthly income.................... 2,342
Expenses (including HP & secured debts). 1,713.74
Available for debt repayments........... 628.26
Monthly UNsecured debt repayments....... 0
Amount left after debt repayments....... 628.26
Personal Balance Sheet Summary
Total assets (things you own)........... 227,000
Total HP & Secured debt................. -151,000
Total Unsecured debt.................... -36,897
Net Assets.............................. 39,103
[/tt]

GeorgeUK

Mortgage................................ 745
Interest only or repayment?

Council tax............................. 115
If paying over 10 months, can you ask to pay over 12?

Electricity............................. 81
Gas..................................... 145
This is huge!! Have a look at the comparison sites to see if you can get a better deal. Also make sure everything is switched off rather than on standby.

Mobile phone............................ 35
PAYG?

Telephone (land line)................... 42
Satellite/Cable TV...................... 21.5
Internet Services....................... 0
Is this a package deal?

Groceries etc. ......................... 200
Have a look at the old style board for meal plan ideas. Also try cooking in bulk and freezing to keep costs down.

Car Insurance........................... 38.28
Buildings insurance..................... 20
Contents insurance...................... 11.78
Life assurance ......................... 38.28
Again, check the comparison sites to see if you are getting the best deal.