DMP, right for me?

Bowline

Hi all,

Been a longtime fan of this site, finally got around to registering!

A bit about me:

• 22 years old
• Male
• Single
• Merchant Navy Officer Cadet (Sponsored Student)

Job situation - I'm under training to become a merchant navy officer. I am sponsored by a shipping company who pay my tuition fees and a small salary. I started this course in September, and it's a three year course.

I'm off away to sea for the next few months, so I decided to try and get everything sorted before I go since it's difficult to do everything when you're on the other side of the world!

Currently, my SOA looks a little like this. I have no rent to pay since I'm living on ship, and my food/cigarette costs are dramatically reduced. When I return to college in September, I'll have to start paying "real prices" for food, cigarettes, rent and so on, but I'll be able to cover these costs with a student loan and grant. The interest rates are not exact, just off the top of my head.

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 756
Total monthly income.................... 756

Monthly Expense Details
Secured/HP loan repayments.............. 158.7
Mobile phone............................ 35
Internet Services....................... 11
Groceries etc. ......................... 50
Clothing................................ 22
Petrol/diesel........................... 30
Road tax................................ 11
Car Insurance........................... 76
Car maintenance (including MOT)......... 11
Medical (prescriptions, dentist etc).... 16
Haircuts................................ 11
Emergency fund.......................... 11
Total monthly expenses.................. 442.7


Assets
Car(s).................................. 5500
Total Assets............................ 5500


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 0........(0)........0
Hire Purchase (HP) debt ...... 6000.....(158.7)....6
Total secured & HP debts...... 6000......-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
Capital One....................697.......30........35
Littlewoods....................1101......15........0
Vanquis .......................1343......60........40
Barclaycard....................260.......260.......27
Lloyds TSB Overdraft...........2000......30........27
Aqua...........................1731......52........36
Total unsecured debts..........7132......447.......-


Monthly Budget Summary
Total monthly income.................... 756
Expenses (including HP & secured debts). 442.7
Available for debt repayments........... 313.3
Monthly UNsecured debt repayments....... 447
Amount short for making debt repayments. -133.7

Personal Balance Sheet Summary
Total assets (things you own)........... 5,500
Total HP & Secured debt................. -6,000
Total Unsecured debt.................... -7,132
Net Assets.............................. -7,632

Created using the SOA calculator at makesenseofcards
Reproduced on Moneysavingexpert with permission, using other browser.

Losing car is unfortunately not an option.

CCCS have advised a DMP and I'm really very tempted. Does anyone have any words of wisdom or any experience with a DMP and my creditors?

Thanks!

Bowline

Oops, slight mistake, my Barclaycard monthly payment isn't £260!

fatbelly

Bowline wrote: »

Oops, slight mistake, my Barclaycard monthly payment isn't £260!

If £260 is your balance, and the minimum payment is around £8, you don't need a dmp as the contractual amounts are affordable.

Bowline

I didn't make that mistake on the CCCS site and was still advised to go down the DMP route.

My main concern is that Lloyds TSB will withdraw my overdraft in February (review date), as I've moved bank account and have just been paying the interest off. I'm also only making minimum payments on all cards. Living costs aren't exact and may be higher than on SOA, I haven't been to sea yet so they're "best guesses".