Old DMPer returning - with a question.

tishywish

I haven't been on this site for ages - my home broadband failed and then my PC crashed so I gave up and have just been keeping my head down and getting on with debt repayments (slowly).

I'm now about three and a half years into a DMP with Payplan, and although the debt balances are getting lower it's being a long slog. At least none of my debts are now in 5 figures - the two that started out just over £10k are down to around £9k.

I wasn't able to increase my payments this year - increased cost of living plus no pay rise for two years have combined to be a real problem. I did stop my second job for a while not long after starting the DMP - I was completely exhausted - but have just started another one for fewer hours.

My question/situation is this: the Payplan advisor I initially spoke to said not to include my second income on the DMP as I was able to find enough surplus from my normal pay, so I didn't include it and gave it up shortly after starting the DMP anyway. Because of cost of living increases/lack of pay rise I've found that I've either got to decrease my DMP payment - which I don't want to do - or include my second income. I assume I should contact Payplan and say I'm now earning x in a second job and add that to the DMP? I would need to adjust some of the figures in my budget - for instance car insurance is higher now I have two jobs, electricity is higher, fuel for the car is ridiculous - but it would mean I could increase my payments slightly.

So, should I leave this until my review is due, which I think is late March/early April? Or do it now? I have only just started the other job so am not sure how much I'll be getting paid anyway.

Tixy

I'd leave it for at least a couple of months before you tell them, that will give you time to assess how much the extra costs and and how much income you'll be getting (and also if you can manage this as well as your main job).

DevonGirl

Hello Tishywish

As you know you should inform PayPlan of any change to income but, as an old DMPer I'm sure you know there's always a bit of wangling that can be done. .

So, strictly speaking yes, start paying that extra as soon as you know exactly how much it is - after all it's your debt and the idea is to clear it asap so you can get on with your Debt Free Life (woohoo!). On the other hand if you've got years to go on your DMP and it feels like a drop in the ocean, you could wait until your review in the spring and use these months to increase your emergency fund or maybe save for a F&F. Don't forget that Christmas is coming up which is always hard when you're on a tight budget anyway.

Personally I'd give the job a few months to:
a) work out how much you earn from it after taking into account all your associated costs and
b) ensure you're in it for the long term and you're not taking on to much (because otherwise if you give it up you'll have to decrease your DMP payment anyway which you say you don't want to do). Assuming you're quids in and it all feels comfortable, I'd 'own up' to the job in the new year - don't wait for the review - and become debt free quicker. But just my opinion that's all.. Good luck

DG

tishywish

You've both said what I was thinking, and part of me isn't sure I'm going to be able to stick at this job for more than a few months anyway. The lack of pay rises is acting as an incentive to me to look for a better paid job, and if I can find one where I'll earn as much as I would with the 2nd job as well then I'll be very happy.

My DMP end date is looking like it's still about 10 - 11 years away, and if I can stick at the 2nd job I'll be able to shave 2 or 3 years off that which has to be worth doing. I just try not to think too hard about the fact that still could leave me doing 2 jobs for 7 years or so