Help and Advice needed! DMP or not?

croggy22 · 19 August 2010 at 9:47AM

Morning,

I have just over £14,000 of unsecured debt, I am up to date with all payments including my mortgage.

Tje problem i have is i dont seem to be getting anywhere with paying my debts off as i am with lenders who charge high interest, i try to pay more than the minimum amount off but it seems to go back on the balance of my accounts with interest.

I am being careful with my money now but still dont have enough extra cash to pay off the debts, i work overtime when its available and have tried to think of other ways to raise money. I cant remortgage as there is not much equity in my property.

I have been thinking about going down the DMP route and have been offered one by Greggory pennington. i am aware that i would perhaps be able to get one without fees though. The question is do i go through with a DMP and damage my credit file? if i dont do a DMP what do i do?

i have completed a SOA below. Any help or advice would be greatly appreciated.

Craig

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.................... 0
Monthly Income Details
Monthly income after tax................ 1800
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1800
Monthly Expense Details
Mortgage................................ 400
Secured/HP loan repayments.............. 70
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 70
Gas..................................... 60
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 0
Mobile phone............................ 40
TV Licence.............................. 12
Satellite/Cable TV...................... 41
Internet Services....................... 0
Groceries etc. ......................... 180
Clothing................................ 40
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 7
Pet insurance/vet bills................. 30
Buildings insurance..................... 15
Contents insurance...................... 10
Life assurance ......................... 15
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 7
Entertainment........................... 0
Holiday................................. 50
Emergency fund.......................... 0
Gym Membership (cancelled soon)......... 48
Total monthly expenses.................. 1230

Assets
Cash.................................... 0
House value (Gross)..................... 97000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 97000

Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 86000....(400)......0
Hire Purchase (HP) debt ...... 1800.....(70).......0
Total secured & HP debts...... 87800.....-.........-
Unsecured Debts
Description....................Debt......Monthly...APR
MBNA credit card...............3651......80........0
capital one credit ca..........1117......40........0
loan 1.........................5478......130.......0
bank of scotland cred..........2547......130.......0
loan 2.........................1555......70........0
Total unsecured debts..........14348.....450.......-

Monthly Budget Summary
Total monthly income.................... 1,800
Expenses (including HP & secured debts). 1,230
Available for debt repayments........... 570
Monthly UNsecured debt repayments....... 450
Amount left after debt repayments....... 120
Personal Balance Sheet Summary
Total assets (things you own)........... 97,000
Total HP & Secured debt................. -87,800
Total Unsecured debt.................... -14,348
Net Assets.............................. -5,148

bottleofred · 19 August 2010 at 10:11AM

Hi Craig and welcome to the forum,
Household Information
Number of adults in household........... 2
Number of children in household......... 0
Number of cars owned.................... 0
Monthly Income Details
Monthly income after tax................ 1800
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 1800
Monthly Expense Details
Mortgage................................ 400
Secured/HP loan repayments.............. 70
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 90
Electricity............................. 70 - Very expensive, you should look at changing providers and don't leave things on standby
Gas..................................... 60 Expensive - look for a cheaper provider
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 0
Mobile phone............................ 40 Very expensive. A pay as you go would be around £10
TV Licence.............................. 12
Satellite/Cable TV...................... 41 You should consider reducing this, although if you call up and explain you are struggling, they may do you a deal for 3-6 months. I'm guessing you have the sports package which is £18 per month, so any reduction or getting rid of it completely would save cash!
Internet Services....................... 0
Groceries etc. ......................... 180 Not excessive, but could be reduced by batch cooking and freezing, taking advantage of bogofs and cooking from scratch
Clothing................................ 40 Could this be reduced to say £20?
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 7
Pet insurance/vet bills................. 30
Buildings insurance..................... 15
Contents insurance...................... 10
Life assurance ......................... 15
Other insurance......................... 0
Presents (birthday, christmas etc)...... 10
Haircuts................................ 7
Entertainment........................... 0 You have to put something in here as nobody expects you to stay in forever!
Holiday................................. 50 This will have to go or be substantially reduced!
Emergency fund.......................... 0
Gym Membership (cancelled soon)......... 48 Cancel ASAP!
Total monthly expenses.................. 1230

Assets
Cash.................................... 0
House value (Gross)..................... 97000
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0
Total Assets............................ 97000

Secured & HP Debts
Description....................Debt......Monthly.. .APR
Mortgage...................... 86000....(400)......0
Hire Purchase (HP) debt ...... 1800.....(70).......0
Total secured & HP debts...... 87800.....-.........-
Unsecured Debts
Description....................Debt......Monthly.. .APR
MBNA credit card...............3651......80........0You have not put in any of the aprs, but you need to focus on paying these off as quickly as possible and try not to use them in the meantime!
capital one credit ca..........1117......40........0
loan 1.........................5478......130.......0
bank of scotland cred..........2547......130.......0
loan 2.........................1555......70........0
Total unsecured debts..........14348.....450.......-

Monthly Budget Summary
Total monthly income.................... 1,800
Expenses (including HP & secured debts). 1,230
Available for debt repayments........... 570
Monthly UNsecured debt repayments....... 450
Amount left after debt repayments....... 120
Personal Balance Sheet Summary
Total assets (things you own)........... 97,000
Total HP & Secured debt................. -87,800
Total Unsecured debt.................... -14,348
Net Assets.............................. -5,148

Just some of my thoughts. Whether or not you go on a DMP is entirely up to you. However, if you do decide to go down that road, please use some of the free organisations as all the money is paid off the debt. The consumer credit counselling service, payplan and citizens advice all have free options available. I paid the first 3 months payments to a company who charged for the dmp before I realised they hadn't paid over a penny as this was their fee. They then would have taken an additional percentage every month had I not cancelled.

Good luck