Please help, creditors saying they will not accept my dmp?

abbie1988

PNPSUKNET wrote: »

aint shop directs apr that anyway?

yes on Very additions & Marshall Ward (that has now moved to k&co)

the others littlewoods, empire stores & kays all work on spread over 20weeks/56 weeks on 0% apr however if you want to choose a longer term for example 2 years then they add the apr on then.

Jinx

abbie1988 wrote: »

I dont intend to take out a additonal loan just the lady on the phone from shop direct said the only way the would accept lower monthly payments would be to use their 'last resort' loan.

i thought creditors were only entiled to your surplus each other? i cant pay them what i dont have.

Any company will take any payments sent to them, I paid all my creditors over the last 6 years by recurring online payment - it goes straight into their accounts. If you send a cheque it will be cashed by the team responsible for banking cheques. They may say they wont accept a lower payment but if you send it they WILL take it.

Creditors can only have what you've got. However if you bank with say Santander and have a Santander credit card, they can apply a rule called 'offset' which means they can take money out your bank account to pay your credit card. Its in the small print.

d3mon4ngel

I've not done a DMP myself, but from what I've read, you need to make sure that you give your creditors their fair share of your available surplus. So if Shop Direct is 50% of your debts, and a credit card is 10%, then for every £100 spare, Shop Direct gets £50 and credit card gets £10. You have to split it fairly, not evenly, and remember, they can't take what you don't have.

Also, if you set up standing orders to pay the amounts then they will accept the payments, though will probably still harass you for more if they are less than the minimum for a while. See SaltnVinegar's thread here > https://forums.moneysavingexpert.com/discussion/2673537 - they are successfully self-managing a DMP from what I can make out, and the progress they've made is phenomenal

HTH and good luck!

Nicky321

Have you done a SOA? maybe worth doing one and posting it, maybe then people can offer better advice. I have over budgeted on things like entertainment (rarely go out) but if you put down every bit of income and every bit of outgoings it is much more easier to work out and see where you are. I also visited THIS website this morning, they offer good advice

abbie1988

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 780.00
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 780.00

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 350
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 85
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 0
Groceries etc. ......................... 0
Clothing................................ 0
Petrol/diesel........................... 100
Road tax................................ 20
Car Insurance........................... 45
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 625.00

Available for debt repayments - £155.00

My rent is £350 this is with a family member it includes all bills & food.

I am aware my moblie phone bill is £85, this is because i have 2 contracts running, i cannot lower the tarrif for at least another 4 months.

Below is the amount outstanding on each debt & the revised monthly payments.

very - £665 - £20.00
Stuido - £317 - £9.60
Littlewoods - £547 - £16.61
Kays - £464 - £14.09
Empire - £991 - £31.00
Isme - 1000 - £30
Additons - £349.00 - £10.59
New look - £150.00 - £4.55
Natwest - £610 - £18.52

BillTrac

abbie,

I know this doesn't help you now, but why two phones?

abbie1988

BillTrac wrote: »

abbie,

I know this doesn't help you now, but why two phones?

I wanted a new phone, very stupid idea, this was before i got myself into debt, all the above accounts have been opened since oct 2010.

a huge amount of debt to get myself in such a short time i know.

Soundgirlrocks

Hi Abbie,

Can you return any of the items if they were bought recenty, or if not ebay them to raise some cash to repay. I'm guessing it's all clothes? Is there any chance of getting a evening job to help

saltnvinegar

Hi Abbie

Looking at this in a positive way the good news is that your overall debt in proportion to your annual salary isn't actually that severe although I appreciate that it doesn't feel like it right now.

Is there any possibility you can explore upping your income? Have you looked for part-time/weekend work in your area? I know these sorts of jobs are scarce at the moment, but may be worth hunting around and asking in shops/pubs/restaurants whether they have any weekend jobs going.

I think if you could get a p/t job you could probably pay this debt off in less than 12 months.

Best

SnV

ceh209

Can you default on one of the phone contracts? You're going to default if doing a DMP anyway so one more at the same time won't be so bad??

Then include the debt of one in the DMP, and carry on paying the other? Or am I missing something here?