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Appointment with Payplan tonight....

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Hi. I'm new to the forum so hope I'm putting this on the right place! I am just facing up to the fact that I'm going to have to start a dmp and am incredibly nervous as I'm really not sure if I'm doing the right thing but dont think I have a choice. I have a phone appointment booked with Payplan tonight but I'm worried they're going to push me to do an IVA as my debts are huge but I really dont want to do an IVA. I have calculated my SOA - should I post it on here for some advice?

Comments

  • shezam
    shezam Posts: 565 Forumite
    Part of the Furniture Combo Breaker
    Hiya,

    Why don't you want an IVA? It might be the best plan of action to manage your money!

    YEs post SOA up here
    Sxxx
  • I've read up quite a lot on IVAs and DMPs and the IVA just seems really inflexible. I cant say if my income is going to remain unchanged over the next 5 years as my husband is currently on incapacity benefit due to major back problems - hopefully this will improve after an operation and he will be able to return to work but there's no guarantees. Also, my children are 18 and 15 so my child maintenance may drop (or disappear) over the next few years as they complete their education. A DMP seems more flexible under these circumstances but I'm happy to hear any advice anyone may have on this. Here's my SOA (please bear in mind the car expenses are x3 as my daughter, husband and I each have a car. The percentage rates on my debts aren't 0% - I've just had to leave it as that as I dont have those figures to hand.


    [tt]Statement of Affairs and Personal Balance Sheet
    Household Information

    Number of adults in household........... 3
    Number of children in household......... 1
    Number of cars owned.................... 3
    Monthly Income Details

    Monthly income after tax................ 2100
    Partners monthly income after tax....... 0
    Benefits................................ 425
    Other income............................ 850
    Total monthly income.................... 3375

    Monthly Expense Details

    Mortgage................................ 1097
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 151
    Electricity............................. 85
    Gas..................................... 85
    Oil..................................... 0
    Water rates............................. 55
    Telephone (land line)................... 25
    Mobile phone............................ 90
    TV Licence.............................. 12
    Satellite/Cable TV...................... 25
    Internet Services....................... 25
    Groceries etc. ......................... 600
    Clothing................................ 70
    Petrol/diesel........................... 300
    Road tax................................ 42
    Car Insurance........................... 190
    Car maintenance (including MOT)......... 30
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 60
    Medical (prescriptions, dentist etc).... 15
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 15
    Contents insurance...................... 15
    Life assurance ......................... 55
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 30
    Haircuts................................ 30
    Entertainment........................... 0
    Holiday................................. 50
    Emergency fund.......................... 50
    Total monthly expenses.................. 3202


    Assets

    Cash.................................... 0
    House value (Gross)..................... 235000
    Shares and bonds........................ 0
    Car(s).................................. 2000
    Other assets............................ 0
    Total Assets............................ 237000


    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 206000...(1097).....5.5
    Total secured & HP debts...... 206000....-.........-

    Unsecured Debts
    Description....................Debt......Monthly...APR
    Credit card....................9800......290.......0
    credit card....................800.......24........0
    overdraft......................2000......0.........0
    store card.....................300.......10........0
    credit card....................11300.....330.......0
    personal loan..................12000.....203.......0
    credit card....................3000......90........0
    store card.....................500.......45........0
    credit card....................4000......120.......0
    credit card....................800.......24........0
    credit card....................3000......90........0
    Total unsecured debts..........47500.....1226......-


    Monthly Budget Summary

    Total monthly income.................... 3,375
    Expenses (including HP & secured debts). 3,202
    Available for debt repayments........... 173
    Monthly UNsecured debt repayments....... 1,226
    Amount short for making debt repayments. -1,053

    Personal Balance Sheet Summary
    Total assets (things you own)........... 237,000
    Total HP & Secured debt................. -206,000
    Total Unsecured debt.................... -47,500
    Net Assets.............................. -16,500

    [/tt]
  • System
    System Posts: 178,346 Community Admin
    10,000 Posts Photogenic Name Dropper
    Hi,

    Just to say, be careful with Payplan. They can be very questionable. It was the worst decision of my life I made, going with Payplan.
    This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com
  • 13000 wrote: »
    Hi,

    Just to say, be careful with Payplan. They can be very questionable. It was the worst decision of my life I made, going with Payplan.

    In what way, i have been with them for two and a half years with no problems.
    Thankyou Sir Alex for 26 years
  • Deep_In_Debt
    Deep_In_Debt Posts: 8,579 Forumite
    Part of the Furniture 1,000 Posts Photogenic Mortgage-free Glee!
    edited 1 September 2011 at 11:09PM
    OP, you could also try CCCS who are a charity and also don't charge for dmps and will offer you impartial advice.

    Just looking at your SOA a few things jump out at me:

    Electricity, Gas and water seem astronomical - do you have arrears that you are paying off as well? Have you looked at cheaper suppliers? Make sure you switch stuff off at the mains and not leave on standby.

    Do you really need 3 cars?

    Mobile phone: Can you go PAYG?

    You internet seems expensive - can you look into a landline/internet package? I have landline and broadband for £19pm plus free evening and weekend calls and as I'm at work all day and don't use the phone, works out well cheap!

    You can well reduce your groceries. If it's the 3 of you £150 pm is well manageable. You can batch cook and freeze, buy cheaper brands, take packed lunches to work.

    Clothing: Unless absolutely necessary, then stop. Wear what you already have, shop in charity shops for essentials.

    Petrol is a lot but then you have 3 cars. As I said above.

    Can you afford a holiday fund? You could be throwing that money at your debts instead.



    EDIT: Just re-read and saw there are 4 of you in the household - but your groceries are still very high.
    Debt 30k in 2008.:eek::o Cleared all my debt in 2013 and loving being debt free :)
    Mortgage free since 2014 :)
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