DMP - think I made a mistake

the_insider

OP, you need to have a long look at your financial situation and start being honest about what you're spending and where. Your comment about not having any money left after paying your debts made me actually swear out loud (sol? is that a real thing? anyways...) that's life I'm afraid. There's no such thing as a free lunch and if you've enjoyed the credit you've had, now is the time to wake up and realise that you're going to have to face it head on. You have no reason to be on a DMP, please take some time out to look through your financial situation, I hope your LBM comes soon.

Have you looked for other flats in Portishead? It's a lovely town, you don't have to live in the old gated community to have a nice lifestlye!! Could you not compromise with something like this: http://www.zoopla.co.uk/to-rent/details/13816419

saltnvinegar

Mookiemoo wrote: »

I am not a troll and it is 100% genuine

And as I said, apologies if you are genuine.

I made some suggestions for you but the most important one is the SOA. Saying you cannot do one because you are a contractor is symptomatic of your debt issues. If you cannot budget correctly then how can you manage your finances?

You need to stop looking at your friends and what they have done, and if you are listening to a fee paying debt management company stop listening to them too. As you have found out they are only going to make you situation worse.

Speak to someone like the CCCS as they will be completely impartial and will tell you the best debt management strategy for you.

Start here Where to seek impartial advice about your debts

Mookiemoo wrote: »

I can pay it but I didnt want the constant stress of worrying what happens when I come out of contract

Thats fine, but you need to look at this statement from a creditors point of view:

You can pay it back, you're just choosing not to pay it back because you find it stressful due to a work situation of your choice.

For your creditors to accept a DMP (as they do this on a voluntary basis) you will need to demonstrate to them what circumstances led you to get into debt (due to economic climate maybe you don't have as much contract work) and what payment plan you can put into place, and how you intend on repaying the debt.

As a contractor, like any small business, cash flow is king, so a SOA is actually more essential than ever consequently you MUST put this together, and understand your finances, otherwise I'm afraid you will always have these issues.

SnV

Hannah_10

SnV it wasn't a fee paying company she went through it was Payplan. She claims Payplan incited her to commit fraud by declaring her expenses as £30k a year not £80k so that they could get her onto a DMP... That's the same Paypan we know and love round here, the same Paypan who are fee-free btw.

Mookiemoo_2

Told pay plan the truth - can control my salary and fix it at whatever is beneficial to me via the company

They settled on 30K

Mookiemoo_2

What led me into it was 6 years of alcoholism and living with a !!!!!! so I spent money to make me feel better - not a great reason but true

pmf63

Mookiemoo, I have been following this thread with some interest and I have to be honest, you remind me so much of myself a number of years ago.

I got myself into debt to the tune of £35k and for years I blamed everyone and anyone for the situation. I even looked for ways to avoid paying it back. Then, the realisation hit me that I am in this crap because I put myself there. Yes, I was made redundant the same time as my wife when the firm we both worked for went bust and we lost all of our household income in one go but the fact remained that I spent the money. I took out the loans and I spent on the credit cards. Once I took responcibility, things started to go right for me.

A few years ago I sorted myself out and now I owe £25k. Still a long way to go but I am taking responcibility for my own actions. And d'you know what? It feels good!

This isn't a dig at you just trying to get you facing in the right direction.

TakingControl

Mookiemoo wrote: »

What led me into it was 6 years of alcoholism and living with a !!!!!! so I spent money to make me feel better - not a great reason but true

Pretty much like me then and if you look at my signature, I had a lot of debt too just with the difference to you, I ain't a contractor so don't have fluxuations in income which also means no means of earning more.

I have repaid a large chunk now by taking action and control and now I look back and think why have I been that stupid to get here in te first place.

Unless you start looking to the future rather than the past, I don't think you will have your LBM moment.

Hannah_10

Mookiemoo wrote: »

Told pay plan the truth - can control my salary and fix it at whatever is beneficial to me via the company

They settled on 30K

None of which changes the fact that you knowingly lied. Were you 19 and a trainee hairdresser who lived with your Mum and Dad I might believe that you were so naive as to not appretiate the implications of your actions. You are not and I do not. I'm not sure what we can do to help you as you are simply not being honest. Nor are you being open, you will not produce an SOA or even list your debts despite having been asked both sternly and nicely several times. I do not understand how you could have thought criminaly manipulating your circumstances to enter a plan suited to people who are in dire financial trouble would be consequence free. And I am at a total loss to imagine what you think we can do for you with your current attitude.

dancingfairy

O.k what's the situation with the jointly owned house? is there anyway to get the equity out at all? Are you having to pay a mortgage on it?

What's your profit from being a contractor? You've said your income is 80k but it also sounds like you incur a lot of expenses within this so the true figure will be lower, as well as having to pay HMRC I guess?

From what I can tell so far you've got expenses of what say 2k to run your own home and car? You've then got 1-2k of debt repayments? I can accept that you've got high overheads for being a contractor but when unemployed this means that you will only be needing a max of 4k a month and frankly if you're unemployed your creditors would probably have to accept token payments anyway. I don't understand why you are quoting your expenses so high.

Is there anyway to downgrade your expense - now you've said you have to travel a lot and stay in hotels, eat out a lot - fair enough but is there anyway you can do this cheaper - for example perhaps staying in cheaper bead and breakfasts or a travelodge instead of something more expensive? perhaps use vouchers to pay for food so it's not quite so expensive?

At the moment you're looking like 10 years plus of having to pay your debts off when with a bit of action (and not neccessarily a dmp) you could significantly reduce this. Just think you could hopefully eventually buy a house in a lovely location rather than be at the whim of landlords if you grasp the nettle.
df

TakingControl

I would also start looking at factoring travel expenses into your quotes to potential clients (which you should do anyway).

Plus the fact that you can claim Broadband, stationary, most likely your car, office space etc partly back on tax would mean you should be struggling even less.

If you want help, you need to be honest and post a SOA which inclues any tax rebates for running your business etc.