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I'm scared of entering into a DMP! Please help!

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  • lonely wrote:
    Thanks for all the messages of support, I really appreciate it.

    HHH, Lloyds are my biggest creditor and I also had my account with them (just changed to Abbey). Can I ask why they refused to stop the interest? Do they tell you why?


    Hi L,

    Can you post an SOA ?

    Best,
  • Hi Lonely

    Have sent you a Personal message.

    Good luck !
    :cool:
  • lonely_2
    lonely_2 Posts: 343 Forumite
    Hi Bestthingsinlifearefree!

    There were lots of reasons for me getting into debt (redundancy, ill health, comfort spending), and I have accumulated it over a period of 8 years or so, so I couldn’t pinpoint one particular reason.

    I have a joint mortgage (and second mortgage) with my hubby – but other than that all these debts are my own. He is really good with money and I don’t want him to get involved and worry about this – it isn’t fair. Also, I’m very afraid of what he will do if he found out - I couldn’t bear it if he left me. So I want to manage this on my own and deal with it on my own.

    I have tried my best at putting together a SOA. Here goes:

    Creditors:
    Alliance & Leicester Personal Loan, £5689
    Alliance & Leicester Personal Loan, £4109
    Honours Student Loan, £3192
    Lloyds TSB Personal Loan, £5932
    AMEX Corporate Charge Card, £1700
    Barclaycard Credit Card, £9741
    HSBC Credit Card, £3000
    Morgan Stanley Credit Card, £6205
    Lloyds TSB Credit Card, £8990
    Lloyds TSB Overdraft, £3000
    Total: £51558

    Income minus pension:
    £2,646.00

    Expenditure:
    Mortgage £ 568.00
    Secured Loans (2nd Mortgage) £ 74.00
    Council Tax £ 72.00
    Ground rent & Service Charge £ 75.00
    Building Insurance £ 22.50
    Gas £ 25.00
    Electricity £ 25.00
    Water £ 10.00
    Other Life Assurance £ 20.00
    TV Licence £ 5.75
    Telephone(s) £ 40.00
    Road Tax/MOT £ 18.00
    Insurance £ 23.50
    Petrol/Oil/Diesel £ 185.00
    Maintenance £ 30.00
    Car Parking Charges £ 10.00
    Food £ 250.00
    Laundry £ 20.00
    Clothing/Footwear £ 75.00
    Dentist/Prescriptions/Glasses £ 25.00
    Pets £ 14.25
    Hairdressing £ 8.00
    Gym £ 50.00
    Total Expenditure: £ 1,646.00

    Available Surplus: £ 1,000.00
    I'm moving on up now,
    Out of the darkness,
    My life shines on, my life shines on, my life shines on ;)
    Member of Payplan since March 2007 (realistic debt free date May 2011):T
    No 17 of the Mutual Support Club and proud of it :p
  • I've been on a DMP with CCCS since Oct, you will get phone calls but give them plan number and tell them you can't give them what you haven't got. You should be able to pay it off in no time with that much disposable income, have you included everything?!?! Send token payments until plan starts. Make sure you cancel any payment protection as this will eat up the payment you make. You will get lots of good advice from more qualified people than me but DMP works for us.
    Good luck xx
    Why didn't someone kick me up the backside earlier:mad:

    Nerd 325 "Proud to be dealing with my debts":j
  • What does your husband earn? Does he contribute anything to the household?
  • Hi and well done for posting - people on here are really supportive and I am sure you will get some good help.

    We are in a slightly similar situation in that our debts are more than yours(jointly) but our joint income is about the same as yours. We have £985 to pay to CCCS monthly and it will take 5 and half years. We are hoping to bring that down if we can by making savings and, as I am in sales, I can make use of my bonuses when I get them.

    I have no experience of IVA versus DMP myself, I am sure someone on here will reply to your question, but I would anticipate that Payplan will advise your which route to take, based on your available amount to pump into debt repayment. My understanding of an IVA is that is more rigid and has penalties if you default on it. I am hoping that our DMP will change with our circumastances (I hope we would get pay rises during the 5 years).

    One thing I would advise - tell your husband. He will find out one day, far better that it comes from you now rather than by him picking up mail or a phone call for you. Do you not think if he can see what efforts you are making, he will be supportive? I would even hazard a guess he may know you have these debts - I can't believe anyone could accumulate £50+k without their partner knowing something is going on... for all you know, he may even have an idea but not know how to broach the subject???

    My other concern for you is this... if you don't address why you have spent the money, you may get caught up in the tide of 'keeping up with the Jones's'. What I mean by that is, if socialising with your OH, present buying etc is part of your spending pattern, by not telling him you may feel you have to carry on doing this, which is a dangerous situation when on a DMP/IVA. You have to stick to the budget you make.

    One of the hardest things my OH and I have to contend with is that we have drifted into regular meals out with a friend of ours. When we tried to cut back and declined outings without explanation, he was feeling put out. We are choosing not to tell people who do not need to know about our situation, so we have told him we are economising to save up for house repairs (partly true as that is the next thing to tackle when we are debt free). He accepted that quite happily and now we go out less and have more meals at our/his house.

    Take some comfort in the fact that you have a made a start - so many people on this forum have been in the same position - you are dealing with your problems and should be proud of that.

    Best of luck

    Newgirl
  • Hi L,

    There has been lots of posters who have run up debts without their partners knowledge and when they have told their partners their partners have been incredibly supportive.

    My view is one couple, joint income, joint debts working together as a team for the same financial goals.

    I am not sure how practical it is to keep it separate. If you became sick, redundant or a stay at home mum. Who would pay the debts then ?

    If a company tried to reposs the flat etc would you tell him them etc ?

    For example it may be hard for you to cut on spending back if your partner does not know. AS you need to say NO to holidays, restaurants, shopping etc.

    Are you happy / trust this man to be the father of your child but not happy to tell him about a credit card debt ?

    Have a BIG, BIG think about this and maybe post a separate thread "should I tell my partner........" and see what advice you get as lots of ppl have been in this situation before.

    Best,
  • Hi L,

    Thank you for posting the SOA !! :beer: (excellent post by Newgirl# 17)

    You say your husband is really good with money. All the more reason to get him involved :confused: (though I question how good he is really with money if he is not communicating enough about finances to know his wife has run up 50K of debt),

    The gym needs to go. You can't afford it. It is a luxery.

    Food is that for both of you ? Is the mortgage for both of you or just your "share" ?

    Do you need a car ?

    What are the Interest rates on the debts. Have you loked at SNOW BALLING ie paying of the highest interest rate first.

    What is the mortgage on the flat and what is it's value?

    Keep going and keep posting. I'm gonna be watching the progress on this thread.
  • L,

    It seems the 50K of debt has crept up on you over the last 8 years for a variety of reasons. The bottom line being you have been spending more than you have been earning. This has to stop.

    You need to start a spending diary today. Evey penny, evey pound you can save is important.

    Best,
  • chivers1977
    chivers1977 Posts: 1,499 Forumite
    Mortgage £ 568.00 (jt??? or is this half. Can you reduce the rate that you are paying
    Secured Loans (2nd Mortgage) £ 74.00 halved?
    Council Tax £ 72.00 halved?
    Ground rent & Service Charge £ 75.00
    Building Insurance £ 22.50
    Gas £ 25.00 If you are spending £50 per month on gas and the same on electric you could really reduce this....
    Electricity £ 25.00
    Water £ 10.00
    Other Life Assurance £ 20.00
    TV Licence £ 5.75
    Telephone(s) £ 40.00
    Road Tax/MOT £ 18.00 are you actually saving this each month?
    Insurance £ 23.50
    Petrol/Oil/Diesel £ 185.00 - wow, that is a lot of travelling.... any cheaper way of travelling
    Maintenance £ 30.00 are you actually saving this each month?
    Car Parking Charges £ 10.00
    Food £ 250.00 Easily can be reduced using the OS board to under £150 loads do it for £100 for 2 but not me!!
    Laundry £ 20.00 Is this fry cleaning. How about using tesco deals vouchers to pay for this or investing in machine washable suits?
    Clothing/Footwear £ 75.00 - This is far too much each month. You must have loads to be getting on with.
    Dentist/Prescriptions/Glasses £ 25.00 - Do you have a regular outgoing or is this an estimate? Are you saving this
    Pets £ 14.25
    Hairdressing £ 8.00
    Gym £ 50.00 Can you cancel this???
    Total Expenditure: £ 1,646.00

    Are a lot of these joint expenses or is your OH not contributing the the house hold. I have commented next to some of them.
    There are times when parenthood seems nothing but feeding the mouth that bites you Peter De Vries
    Debt free by 40 (27/11/2016)
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