Is DMP the right way to go?

katsu

debtboredom wrote: »

Just to explain, I share a flat with a friend. I pay the rent and a couple of bills, he pays the other bills which bills below have 50% in and which are in full? and we split it 50/50. He ends up paying me the difference (£250).

Statement of Affairs and Personal Balance Sheet

Monthly Income Details
Monthly income after tax................ 1693
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 250
Total monthly income.................... 1943

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 595
Management charge (leasehold property).. 0
Council tax............................. 0
Electricity............................. 0
Gas..................................... 0
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 12.25
Mobile phone............................ 45 ring and ask to drop a tarrif. If you are out of contract look at a cheap sim only like giff gaff (or remember this at the end of your contract).
TV Licence.............................. 0 does your flat not have this when you have a TV package below?
Satellite/Cable TV...................... 45.75 ring them and say you will leave. Negotiate. Check prices of competitor etc. Even better go freeview or watch online.
Internet Services....................... 7.5
Groceries etc. ......................... 150
Clothing................................ 20 go to charity shops or have a few months without clothes shopping to help you clear some debts.
Petrol/diesel........................... 100walk anywhere under 3 miles away. Save your clothes money and buy a second hand bike for the summer weather and then you can cycle further than you want to walk.
Road tax................................ 10
Car Insurance........................... 77.09
Car maintenance (including MOT)......... 10
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 11.85
Life assurance ......................... 43 as per my other post, I strongly suggest you cancel this.
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 15
Entertainment........................... 50 just beer money or something specific?
Holiday................................. 0
Emergency fund.......................... 0
Bank Account Fee........................ 12.95 do you need to keep paying this until your OD is sorted as it affects the rate? Bet you don't really need the inclusive benefits otherwise. Review for when to cancel.
OD Fee.................................. 5
Total monthly expenses.................. 1210.39


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0
Total Assets............................ 1000

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Credit Card 1..................3750......150.......17.9
Credit Card 2..................9800......250.......17.9
Loan 1.........................3800......201.......0 when do the loans finish?
Unplanned Overdraft............700.......0.........0
Planned Overdraft..............700.......0.........0
Loan 2.........................5000......154.......0when do the loans finish?
Total unsecured debts..........23750.....755.......-


Monthly Budget Summary
Total monthly income.................... 1,943
Expenses (including HP & secured debts). 1,210.39
Available for debt repayments........... 732.61
Monthly UNsecured debt repayments....... 755
Amount short for making debt repayments. -22.39

Personal Balance Sheet Summary
Total assets (things you own)........... 1,000
Total HP & Secured debt................. -0
Total Unsecured debt.................... -23,750
Net Assets.............................. -22,750

Some things you can look at.

debtboredom

Hi all,

Thanks for all your help so far! It's made it so much easier having people to talk to on here! My girlfriend knows exactly where I'm at now too and she's absolutely fine and supportive which helps massively.

I've come up with a bit of a plan and would love to know what you think!

I've decided not to go on a DMP for now as I can basically afford the minimum payments (if not a bit more) so it's unlikely they'd freeze interest.

Because I'm £700 over my overdraft, next month is going to be really tight! I'm going to make minimum payments at the end of this month.

I've cancelled the life insurance. I'm going to walk to work instead of drive and I'm going to make my own lunches. I've done a bit of a shop to last until the end of the month

I called Lloyds earlier to ask for a repayment holiday on my loans for this month as it would help me with my cash-flow. They said no but then put me through to their customer support unit. I went through my income and expenditure with them and then they told me that my loan was 'unaffordable at the moment based on the information I'd given them' so were still unable to offer me a repayment holiday (doesn't make sense to me?!) They said my account is currently with collections because of the unplanned overdraft so I would need to talk to them to come up with an arrangement.

When I spoke to collections they asked if I intended to pay off the overdraft in one go. I said I don't have a choice because my wages are paid into that account so it will be cleared at the end of the month but will likely end up at square one again because I will be short of money. They said I could go on a repayment plan but would need to make a token payment of £30-£50 to do so. I explained I had no money until my wages went in and the lady then said she'll put a note on my account saying the OD will be paid in full at the end of the month.

And where does 'responsible lending' come into this?! How is it that I'm able to take a repayment holiday if I don't have a problem with my finances but when I fall into some trouble I'm not allowed?!

Was feeling good about it, now feeling deflated!

freshstart11

Right, I really would open an account with another bank and get your wages paid in there - then you can arrange it with them.

Please do not let them bully you, please do this - best thing I ever did xxx

debtboredom

Thanks freshstart .

I actually opened an account with Halifax that I now need to close because I found out they're owned by Lloyds. I'm going to open a Co-Op account. The problem is that it's too late for next payday for me to change my bank details with work! (Ridiculous I know!)

I'm basically screwed either way but will just have to bite the bullet in July. I'll just have to face the fact that it's going to get worse before it gets better!

freshstart11

When you get paid most places need 5-7working days notice to change?x

debtboredom

Get paid on the 26th and was told by the finance dept that I needed to get a form in by last Friday for it to be done in time for June pay... Load of rubbish.

freshstart11

crap! Find out who your payroll manager is, call or email just say you need to change your bank for next pay and see what they can do x

dancingfairy

What is the bank account fee for? Is it for extras? DO you actually need/make use of any of the extras at all? For example you could get breakdown cover for probably something like 20 a year for the entire year (if that's why you're paying for extras), holiday insurance, again you could get that a lot cheaper by shopping around and I can't see you going on fancy foreign holidays right now (correct me if I'm wrong).
Deffinitely look into that fee and really consider cancelling.
df