Anyone who has done a DMP?

inhotwater

If it's going to help your peace of mind, then go for it. Everything else in life is so much easier when you're not stressed and I'm much more motivated about sorting my situation now than before.

I had my DMP interview and then it was about 6-7 weeks until the DMP kicked in - ie I had a spare month before making the DMP payment. In that month I made only token payments (I paid £10 per creditor, but your figure can be more/less). Even though my DMP hadn't started, I had begun the process of sticking to the budget so I had a few hundred pounds 'spare' that month. I used that money firstly to get rid of my small overdraft - it was only small so CCCS agreed it was easier for me to do this rather than having yet another debt and having to open a new bank account/move all my DDs etc. I put the rest of the money in a savings account for my buildings insurance and service charge (live in a flat). My DMP includes these items, but as they are annual charges I wasn't going to have quite enough saved before I needed to pay them - I wanted to get ahead of my savings a bit.

You might find yourself in this position so could get your door fixed or buy your couch. Is there anyone who might be able to help you with the door - perhaps you could give a treatment or trade your services (ooh, that sounds iffy!, but you know what I mean! ). Is the couch something you might be able to find second hand or on EBay? If you really don't have the funds, perhaps you could sell some of your own stuff on EBay to raise the cash?

Check out the thread titled (something like!) "Can I make £0000 in 11 weeks from nothing" - there are lots of great ideas to make some cash and it's all very motivating.

Good luck!

jillie1974

know the feeling bout the house
i am currently seeing if i can re-claim bank charges from natwest. reckon will be a couple of grand and if i get it will be using it to sort the house out. at the moment am asking friends etc to help out with some diy stuff we cant do ourselves. bu this is why they tel us to put money away every month#if an emergency just crop up though you can postpone a months payment. we have just done this as OH was on SSP rater than full sickpay so we need the cash for shopping etc

inhotwater

And another thing...... :rolleyes:

Don't keep putting it off because eg, this month you need to fix the door, next month you need a new x, and the month after y needs fixing. I did exactly that, carrying on using my credit and meaning to do a DMP 'soon'. 'Soon' only really came around when I started to get closer to my credit limits and realised that soon I wouldn't be able to choose when I started my DMP. And of course, with all the interest and my spending still not really reined in, my debt was even bigger. I should have got straight on with it when I first enquired about DMPs back in August 2005 - but I let it drift for another 8/9 months - very foolish, please learn from my mistake! :rolleyes:

Kazonline

I do hope you get your charges back Jillie - not just for your own sake but because I know from experience (many moons ago) what pigs the natwest can be for slapping on charges.

If I were to write a list of things I feel are 'needed' in the house it would go like this

Back door - security risk, pushes up heating bills, ruining my lino, cooking/cleaning a nightmare 'cause it's so cold.
Massage couch - Without it I won't qualify and could lose my ALG (worth £1500, couch cost £200) I 'need' a height adjustable bed because I'm fairly tall and working on a shorter couch is agony.
Very 'wanted' and nearly needed
Carpet in l/room and hallway, plus new 3 piece suite - As I think I said in a previouse post these are seriously bad, think 'life of grime'. Carpet was in need of replacing when I bought the house 6 years ago, and still not done.
Suite is threadbare, springs broken and now almost impossible to clean.

I've been dragging my feet for sometime on this, so I'm going to make my decision in the next couple of weeks so that it can be well underway by the new year, but as it's going to take me in excess of 38 years to pay it back at the current calculated rate (though I expect it'll be much sooner as once the children have left home I plan on knuckling down to clear it) I don't want to put myself in a situation where I'll end up borrowing off a nasty company (eg provi) because I'm desperate.
I'm thinking along the lines of getting the back door sorted and getting the couch and then saving/ebaying to get the 'luxuries' like the suite/carpet - or am I continuing to be a debt mug?:o
*** another update - I've just had a call from the part of pay plan that deals with mortgages. While they were unable to help me previously, there is a slim chance they may be able to let me remortgage to pay off my debts. I've another 'interview' tomorrow, so hopefully will know more then.... I'll let you know as I'll need your opinions on the best options if that's ok...

This morning I thought there was no hope - and now it looks so much better.
Thank you.

madduck

I know that when you are setting up your DMP, you want to put as much money as possible into it so that you pay off your debts as soon as possible - however, remember that you need to build some leeway into it for social or entertainment. I didn't want to put anything on it when I first went into my DMP but the great woman that I spoke to at CCCS explained to me that I was going to be on the DMP for years and that it would be unreasonable to have no life all of that time. At the time it seemed like a real extravagance as I'd been struggling with money for so long that I had no life. I was in such a mess that I had no money the day after I was paid.

The DMP has been a life saver for me. I'm taking control of my debt for the first time in my life. I'm now reducing the level of debt for the first time in my adult life. I'm learning to budget and I'm getting more and more disciplined. I know that my credit rating is screwed, but to be honest, can't imagine wanting to get into that credit cycle ever again.

You've done the right thing. You will get some hastle from your creditors for a few weeks/months. They may try to threaten you with all sorts, but stick to your guns, you're paying them all that you can afford and if on the off chance they do take you to court, the judge will see that. I've been threatened with court, been threatened that they will take a charging order on my house, been pressurised by Morgan Stanley into considering taking a secured loan out to pay my debt to them (can you believe these people). On the bright side there are good people out there to. It was actually one of my creditors who recommended that I contact CCCS.

Kazonline

Thank for your post madduck, it seems that most people have had positive experiences of DMP's.
Can I just ask, if you were in my boat (about to go onto DMP that is VERY tight as I only just qualify for one because I only just have the minimum £30 to go to creditors) would you get the back door while you could?
The door is going to cost me in the region of £900 as there's a window attatched to the frame at the side. I can't see me managing to save for that while on the DMP, and no doubt there will be emergencies that crop up that will be needed out of what savings I manage.

Kazonline

Me again.....

Can I please have some feedback from those of you on DMP's or other 'budgets' to make sure I'm being realistic with my budget?

At home there is myself, 3 children with hefty appetites (ages 8, 12, 16) and dog.

Monthly payment

Food, toiletries, cleaning 392
Clothing and footwear 35
Children's pocket money 0
School trips/activities 15
Telephone, mobile & Internet 60
Medicines/prescriptions 0
Dentist/opticians 13
Fuel and parking 80
Vehicle spares and servicing 10
Hairdressing 5
Pets, pet food/insurance 12
Sports, hobbies and entertainment 10
Sundries/emergencies 20

The fuel and parking is going to be very tight as even when I'm being very frugal with fuel we tend to use £20 a week, and already the fuel has gone back up a few pence. I was planning on taking the parking out of the emergencies fund.
The food budget is tight as previously it was about £125 per week. I know that it is possible to shave that down to unbeleivable amounts but I do try very hard to cook healthy meals, and as we all know, that tends to be a bit dearer. (plus my car is a fuel guzzler so it's not cost effective to visit supermarkets in the hope that there'll be decent reductions at night!)

I've never had enough in a budget to have an allowance for clothes and shoes, so that will be an 'extra' as will the school trips/activities. I've no idea what I've really spent on those - I've simply kept things the the bare minimum.

I'd love to hear your opinions on this budget, and also what I should do about the back door and treatment couch - even if it is to tell me not to be so greedy!!!

Thanks again to everyone for your support, hopefully one day I can repay your kindness,
Kaz x

snoozer

Kazonline,

Just a couple of things really. Are you a member of freecycle. You might be able to get a new suite through them, many people give away perfectly good items when they replace them.

THe other suggestion is have you looked at Martin's thread to make sure you are claiming all the benefits you are entitled to?

Sue

Kazonline

Hi Snoozer, thanks for your post. Yes I am a member of freecycle (at least the groups nearest to me as there isn't one for my area), I've not seen any suites on there so far.
I'm pretty sure I'm getting all the benefits I'm entitled to at last, but it did take quite a while to get there!
I'm on pins at the moment as I was supposed to be having a call back from a mortgage broker linked with pay plan at 1:30, but nothing .
I'd rather they just tell me if they can't help rather than keep me waiting.
Mind, I've passed the past half hour applying for freebies from links on the freebie board, so not a total waste of time - at least I should smell nice with all the free perfumes even if I can't afford to wash, lol.
Grr - it's now gone 3 and still no phone call. Totally cheesed off now.

madduck

Hi Kazonline

Re the door - does it definately need replaced? Have you thought about looking at one of those adverts in the local papers for builders/joiners who will give free estimates. Might be able to get a reasonable priced repair that will keep it going for a wee while anyway?

On your SOA - might be me - but aren't there a few things missing? Can't seem to see TV licence - do you not have a TV?

You've got fuel, parking, spares, servicing - but nothing for car tax and car insurance?
On reflection - is this a part SOA? Just there is no mention of rent/mortgage, insurance, gas, electricity, etc.?