Living with a Debt Management Plan

littlefaster

Hi all

I recently have spoken to Payplan about getting onto a Debt Management plan as I just dont think I can cope with living with so much debt anymore.

Before I agree to go through with anything, I just wondered if you might be able to answer a few questions.

I have given my case worker details of all my creditors.. and trust me, the amount was scary, £50k+:(:(

She has gone away to look into my case and will be back in touch soon.

I just want to know about other peoples experiences of DMP's and with Payplan, good or bad.

Do you have very much free cash each month after you have paid your motgage, bills, food and DMP money? Just want to know I wont be entirely cut off and have to spend the next x amount of years stuck indoors cos I cant afford to go anywhere!!

Would appreciate your comments and thoughts

Thanks x

mrsiwannabefree

I'm interested in how it works too as we are just about to start a DMP or IVA

Lovella

I was in a similar situation to you a few years ago and am just about to make my last payment via Payplan (I need to update my signature!) In my experience they have been fantastic and I could not have done it without them. I still had enough money to have fun (albeit not extravagant fun!) but you obviously do have to watch your money very carefully - which you will need to do presumably whether you go with them or not. I am glad to have got their help when I did, and the feeling of relief knowing that it's under control is amazing.

Tixy

Hi

On a DMP you usually won't have lots of money surplus to be splurging on lots of holidays and the latest gadgets etc but you should have small allowances built into your budget for things like clothes, entertainment etc, sometimes holidays as well. What a lot of people do in practice is once their DMP is set up and the budget agreed with the charity or payplan in your case they then start looking for all the areas then can reduce their spending to give them a little extra breathing space for other things that might crop up, emergencies etc.

So for example I've seen people with a DMP budget of £125 for groceries etc who has got that cost down to around £80 per month (this was for one person).
But for most people being on a DMP does mean some lifestyle adjustments and getting used to spending less and prioritising etc.

Has she gone through a budget/statement of affairs with you yet? Have you got an estimated time duration for your DMP?

Tixy

mrsiwannabefree wrote: »

I'm interested in how it works too as we are just about to start a DMP or IVA

IVA budgets tend to be more strict than DMP ones and suprisingly more strict than bankruptcy allowances. I guess this is because your creditors have to agree to it and agree to write a percentage of the debt off.

Thats not to say that the budget should be the deciding thing about choosing a DMP or IVA. Who is advising you on this? is it one of the charities? If not do speak to one of them for some impartial advice first.

littlefaster

Thanks guys... I appreciate the comments

She has gone through all of my creditors and how much I spend on this and that each month.. she said that she could hopefully increase my food shopping bill from £10 a week which I currently spend to a bit more!

Im getting married next summer and I want to try to save a little bit of cash where possible.

I am looking for another job so I can move in with my partner and rent my flat out, so that will be some more income to go towards the DMP

My case worker has been brilliant so far, she is calling me back later today/tomorrow to outline how they can help... im really nervous tbh!

As I am looking to move house, i am going to be selling some bits and pieces on ebay.. this isnt going to be a massive income, but do I need to declare it to Payplan? As it would be nice to have some cash to help put towards my wedding!

Im slightly scared to commit to a DMP as I dont want to be left with no cash at the end of the month to live on/put away but I am serious about getting things back on the straight and narrow again.

My partner knows about my problems and he is supportive if a little wary.. but he knows that i am taking steps to make this right. Luckily his house is owned outright, so when I do move, there will just be small bills and living costs to contribute to and no big £700 a month mortgage like I am paying now on my own

x

dancingfairy

120 a month on food for one person would not be unrealistic (although some can do it for less - say 80). I'm sure some people manage on less but the idea is to be realistic - you are not suposed to starve yourself or to try and live on some ridiculous budget to repay your debts.
50k is quite a large amount to be repaying on a dmp although it depends on your circumstances. If a dmp is going to take more than 6 years often another form of debt help may be more suitable - ie an IVA or bankruptcy. Although people have managed to pay off very large sums on a dmp so it is by no means impossible and obviously IVA's or bankruptcy are out for some people due to their careers.
df

littlefaster

Hi.. my case worker didnt seem overly concerned about the amount of money I owe.. she also said that she could definately see how they could help me out and also put me on a flexible plan should my circumstances change, so I assume she means a DMP rather than an IVA?

Im so nervous about going through with this

angeldiva

Since the start of my debt I have been on payplan and I am due to finish in September! Whooo hooo!
At first I found it quite hard to live within a budget as I was not used to it but believe me you find a way to do it. I had the maximum allowances for everything therefore I always had a bit spare to play with. I can’t believe I am nearly at the end of what has been one long journey; I really have enjoyed my payplan experience.

littlefaster

I dont suppose you could give me an idea of how much allowance they gave you for things like
Food
Fuel
Clothes
Phone
Dentist/Prescription
Haircuts/Day to day stuff?

Any idea or rough estimate would help!
x

rennes123

In short,it was the best thing we ever did. We had to something we never had to do before....Budget! If it wasnt for the cccs I would be in a straight jacket!