DMP or Not DMP That Is The Question....

bennyboy83

Good Evening My Friends

I am here after reading many of your fantastic stories and finally realising myself and the better half are probably in serious need of a plan to become debt free...

We've been rolling debt, spending far more than we earn on basics and really struggling generally - we have never missed a contractual payment but now we're onto the payday loans as the good lady has taken a pay cut during her teacher training year which despite future prospects has really had an impact bless her :A

Do we get on a DMP or should we continue to struggle until she qualifies knowing we're only probably putting off the inevitable???

Spoke to Pay Plan and they're sending "the pack" but have a Barclaycard payment to make by DD tomorrow (minimum) which we really dont have anything to cover and I'm sure not going to get another dodgy payday loan - thats over! Really appreciate any advice over this... should I just cancel the DDs now before I receive the DMP paperwork/let anyone know???

I've done an SOA below:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1480
Partners monthly income after tax....... 980
Benefits................................ 0
Other income............................ 100
Total monthly income.................... 2560

Monthly Expense Details
Mortgage................................ 500
Secured/HP loan repayments.............. 537
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 35
Gas..................................... 40
Oil..................................... 0
Water rates............................. 27
Telephone (land line)................... 10
Mobile phone............................ 80
TV Licence.............................. 12
Satellite/Cable TV...................... 19
Internet Services....................... 6
Groceries etc. ......................... 240
Clothing................................ 20
Petrol/diesel........................... 140
Road tax................................ 15
Car Insurance........................... 55
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 25
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 15
Life assurance ......................... 35
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20
Haircuts................................ 20
Entertainment........................... 20
Holiday................................. 30
Emergency fund.......................... 0
Total monthly expenses.................. 2036


Assets
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 8000
Other assets............................ 0
Total Assets............................ 128000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 93000....(500)......6.5
Secured Debt.................. 30000....(310)......9.9
Hire Purchase (HP) debt ...... 8000.....(227)......12.9
Total secured & HP debts...... 131000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard Wife...............3954......90........12.9
Barclaycard Me.................1950......45........14.9
NRock Together Loan............14676.....90........6.5
Lloyds OD......................500.......10........0
Dad Small Loan.................1500......45........19.9
Dad Big Loan...................18000.....277.......5.9
MBNA CC........................643.......25........15.9
Barclays OD....................1000......25........0
Natwest OD.....................1500......20........17.9
Very Catalogue.................217.......0.........0
LloydsTSB......................4548......133.......9.9
Barclays Partner...............75........25........14.9
Total unsecured debts..........48563.....785.......-


Monthly Budget Summary
Total monthly income.................... 2,560
Expenses (including HP & secured debts). 2,036
Available for debt repayments........... 524
Monthly UNsecured debt repayments....... 785
Amount short for making debt repayments. -261

Personal Balance Sheet Summary
Total assets (things you own)........... 128,000
Total HP & Secured debt................. -131,000
Total Unsecured debt.................... -48,563
Net Assets.............................. -51,563

happyhaddock_2

Hi Bennyboy,welcome to MSE and well done for taking the first step:T.
I can't help too much as I'm new to all this as well, but I think you will be too late to cancel the Barclays DD, my onnline banking won't cancel one with less than 3 days to go.

I've just started a Debt Management Plan with CCCS, try their Debt Remedy on their website www.cccs.co.uk it's anonymous and will give you a good idea what options are available. Good luck I'm sure you'll get lots of great advice:)

mamajojo

Hi Bennyboy, I can only echo the sound advice of Happyhaddock. We struggled on and it was the worst thing for us to do, if we'd faced it properly two years ago we'd have much much less debt than we have now. Take time to make sure you decide carefully what is the right thing for you both to do. Well done for facing it!

miss_missy

bennyboy83 wrote: »

Good Evening My Friends


I've done an SOA below:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1480
Partners monthly income after tax....... 980
Benefits................................ 0
Other income............................ 100
Total monthly income.................... 2560

Monthly Expense Details
Mortgage................................ 500
Secured/HP loan repayments.............. 537
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 35
Gas..................................... 40
Oil..................................... 0
Water rates............................. 27
Telephone (land line)................... 10
Mobile phone............................ 80 reduce this you cant afford that
TV Licence.............................. 12
Satellite/Cable TV...................... 19 get rid for now
Internet Services....................... 6 wow thats a good price
Groceries etc. ......................... 240 this is high i spend a little more for 2 adults 2 children and it includes nappies
Clothing................................ 20 use what you have for now
Petrol/diesel........................... 140
Road tax................................ 15
Car Insurance........................... 55
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 25
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 0
Buildings insurance..................... 15
Contents insurance...................... 15 try to reduce thsi and buildings when next up for renewal and use cashback site
Life assurance ......................... 35
Other insurance......................... 0
Presents (birthday, christmas etc)...... 20 do you buy for family? or is this just each other? if any of this is to buy for each other reduce and do without for a while
Haircuts................................ 20 reduce this
Entertainment........................... 20
Holiday................................. 30 do you have it booked? if not you cant afford it
Emergency fund.......................... 0 you need something here
Total monthly expenses.................. 2036


Assets
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 8000
Other assets............................ 0
Total Assets............................ 128000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 93000....(500)......6.5
Secured Debt.................. 30000....(310)......9.9
Hire Purchase (HP) debt ...... 8000.....(227)......12.9
Total secured & HP debts...... 131000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Barclaycard Wife...............3954......90........12.9
Barclaycard Me.................1950......45........14.9
NRock Together Loan............14676.....90........6.5
Lloyds OD......................500.......10........0
Dad Small Loan.................1500......45........19.9 what is this??
Dad Big Loan...................18000.....277.......5.9 same as above is this a loan take out by your dad for you ?? not sure how this stands if you go on a dmp you need advice about that
MBNA CC........................643.......25........15.9
Barclays OD....................1000......25........0
Natwest OD.....................1500......20........17.9
Very Catalogue.................217.......0.........0 your paying nothing here??
LloydsTSB......................4548......133.......9.9
Barclays Partner...............75........25........14.9
Total unsecured debts..........48563.....785.......-


Monthly Budget Summary
Total monthly income.................... 2,560
Expenses (including HP & secured debts). 2,036
Available for debt repayments........... 524
Monthly UNsecured debt repayments....... 785
Amount short for making debt repayments. -261

Personal Balance Sheet Summary
Total assets (things you own)........... 128,000
Total HP & Secured debt................. -131,000
Total Unsecured debt.................... -48,563
Net Assets.............................. -51,563

your currently short by 261
phones PAYG 10 each a month =60
shopping = 80
holiday = 30
clothing = 20
sky = 19
haircuts =10
totals 219 with some big cutbacks on the phones and shopping
you really cant afford a holiday but youd still be £42 short of breaking even each month however if you got rid of presents that would be another 20

there might be some room to shuffle the cards round get lower better deals for example whats your mbna limit? if you could move the money off that you maybe able to get a deal with them ive always used them for deals people may have some ideas if you list credit limits to see if you could shuffle

cant advice on a dmp as we decided against going on one so dont know much about that

good luck with whatever you decide they will always be someone on here to support you and help not matter what you decide

miss_missy

hi again
please dont be offended by my next question and sorry for being so rude as i understand that its easy to run up debt but what happen in the last year to increase your debt by so much as in jan 09 you were thinking of going for an iva and listed your debts as

NR (Together.... cough..) Mortgage - Balance £92000
Secured Loan - £32000
Car HP - 12000

NR Together Unsecured Loan Portion - Balance £14000
Credit Card - £700 (14.9%)
Credit Card - £680 (Interest Free Until October)
Loan - £413
Overdraft - £5700 (10.9%)
Overdraft - £980 (Interest Free)
Overdraft - £1300 (Interest Free)
Catalogue - £195 (Paying Off)

i have to say looking at that post and how much youve manage to increase your debt by in a year i think a dmp maybe best for you as it will be more likely to make you stop spending if thats how youve got the extra debt
i hope none of what i say has offended you but you looked into getting help last year and now a year on your in even more debt i feel you need to get the help now or you may lose everything you have including your home

please please get the help you need now

bennyboy83

Thanks Everyone....

Yes, Missy - appreciate your points, the loans from the father are both taken out in his name (just for complication), as an aside it seems PP are prepared to play with figures to accommodate these which I found a rather interesting proposition...

Very is currently 0% 12 months so paying nothing currently...

With the IVA post last year, being totally honest, I think I wasn't taking my dad in to consideration even though it was obviously coming out of the account monthly.... With the IVA I realised I would be causing him serious hassle and now our home is neg equity I'm not sure why neither CCCS or PP are looking more down the IVA route - perhaps due to the monies owed to my dad and DMP would be more flexible...?

We ended up having to convert the big overdraft in to a loan instead because Lloyds decided they were going to pull the plug on that - they set a date of overdraft expiry then wouldn't allow us to renew.

My wife has been in teacher training since Sept. and since then, with her pay cut, things have gotten dramatically worse as you have quite rightly noticed and not rude at all - in fact very helpful

bennyboy83

Further to this I should mention that from Sept 2010 my wife will hopefully be employed as a teacher ie. 21k start which means more income however there is no real guarantee - its basically a short term big issue - the mortgage is back on interest only (93k) but secured loan remains repayment (30k)...

Card limits are really at the ceiling on all - MBNA 700, Barclaycard 4000, Other BCard 2000.
I had purposely reduced limits manually by calling to avoid spending further.

BeautyandtheBeast_3

hi - will the wife def get a job in teaching? what i mean is if she is a primary teacher then its more difficult to get into than secondary and also what subject does seh teach (is she a shortage subject teacher?)bshe can also get herself listed as a private tutor and get some extra cash (£24 p/hr for KS2) whilst she undergoes her training.

miss_missy

ok if we looked at it as a short term fix can you reduce the mobiles??

no presents = 20
no haircuts = 20
shopping reduce = 80
no holiday = 30
no clothing = 20
no sky = 19
mobiles PAYG 10 each per month = 60
total savings 249
also you could include entertainment money if its only for a short time which would give you 20 extra
can you then reduce petrol a little?
that might bring you in at least even per month

then id be looking at seeing if you can get life insurance cheaper weve even cancelled ours in the past when weve needed a little extra money then started a new policy i would never advise anyone to do this but its something weve done short term
the only problem with this is any emergency comes up and not sure what youll br able to do as you have nothing put aside

then can you sell anything? carboots ebay anything just to bring a little extra in

now the above would help you short term if your wife was able to get a job for september
of course you also need to think long term just incase she doesnt get a job

also forgot to ask is the council tax 10 or 12 months if 10 pay over 12 it would give you an approx £17 extra a month

bennyboy83

B&TB - She's shortage secondary science so hoping for a blessing, she's doing so well and impressing everyone, I'd hate for this debt thing to get in the way....
Applying for jobs atm so will see what happens

Missy - I hate to say it but the mobiles are iphones - I know for sure we can knock em down to £60 together though.

no presents = 20
no haircuts = 20
shopping reduce = 80 (must stop going to Tesco!)
no holiday = 30
no clothing = 20
no sky = 19
mobiles PAYG 10 each per month = 60 (as above)
total savings 249

also you could include entertainment money if its only for a short time which would give you 20 extra (yes)
can you then reduce petrol a little? (probably to about a hundred quid!)
that might bring you in at least even per month

I do some part-time work but is not guaranteed, quite variable, but can be anywhere between 100-300 a month extra.
Wife is also tutoring £20 a week which seems to cover her stationary requirements etc...

CCCS are saying Low Start DMP or full IVA but that really would be a last resort knowing what might happen to income Q3/4 - plus although our Experian is full of debt, none of it is bad and would be a great shame to have it go that way....

You guys are wonderful, it's so blooming depressing everywhere but here!
I'd started to run out of steam a bit...

BeautyandtheBeast_3

Fantastic - she will get a job no problems!! if she is doing the PGCE then she will a get a £5000 golden handshake at the end of her induction year so thats something to look forward to! xx
but she can get herself registered now with some tuition agencies and can start charging decent money - tell her to be quick though as the exams are in june. xx