What Debt to Include in DMP

debtfreewannabie

Hi,

I'm struggling to keep up with my credit card payments and am finding that I'm dipping into my credit card for living expenses, including paying off debts and payday loans.

I think a debt management plan is the right way to go to finally get on top of the issue, however I work for a bank...

My wages are paid into my bank account and its almost impossible to get wages paid into a separate separate account.

So I have two overdrafts and two loans with my bank which are at a staff rate (one base rate interest, plus overdrafts are at a very low interest rate).

Ideally I would like to not include my outstanding debt with my bank and only include all the other creditors in the DMP. Is this even possible? I'm guessing not?

If I had to freeze interest and move my everyday banking away from my employer, then I think this could mean I would loose my job!

So I guess the answer is, can I produce an income/expenditure statement including the low payments I make to my bank debts and offer a lower payment to the other creditors, or will they want proof that I've frozen my debts with my bank before accepting any offers?

Thanks
Matt

Depth_Charge

debtfreewannabie wrote: »

Hi,

I'm struggling to keep up with my credit card payments and am finding that I'm dipping into my credit card for living expenses, including paying off debts and payday loans.

I think a debt management plan is the right way to go to finally get on top of the issue, however I work for a bank...

My wages are paid into my bank account and its almost impossible to get wages paid into a separate separate account.

So I have two overdrafts and two loans with my bank which are at a staff rate (one base rate interest, plus overdrafts are at a very low interest rate).

Ideally I would like to not include my outstanding debt with my bank and only include all the other creditors in the DMP. Is this even possible? I'm guessing not?

If I had to freeze interest and move my everyday banking away from my employer, then I think this could mean I would loose my job!

So I guess the answer is, can I produce an income/expenditure statement including the low payments I make to my bank debts and offer a lower payment to the other creditors, or will they want proof that I've frozen my debts with my bank before accepting any offers?

Thanks
Matt

Hi Matt

Its a tricky one given your employment may be at risk.

What is your employers official policy in this type of sitiuation?

There is an argument to be had that any creditor normally classed as non-priority but could have a detrimental effect on your employment thus putting payments to all creditors and everything else at risk can be treated as priority for obvious reasons. But like I say could be tricky.

Also your options in general could be limited / restricted due to the employment situation

Could you put up your SOA as that may give us a better idea?

Also I think it would be best to speak to one of the free agencies such as CAB, CCCS and National Debtline before you make any decisions

debtfreewannabie

Here's a quick SOA:

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2175
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2175

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 950
Management charge (leasehold property).. 0
Council tax............................. 140
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 34
Telephone (land line)................... 12
Mobile phone............................ 40
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 19
Groceries etc. ......................... 210
Clothing................................ 0
Petrol/diesel........................... 180
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 30
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 38.25
Buildings insurance..................... 0
Contents insurance...................... 13
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0
Haircuts................................ 10
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1788.37


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

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Tesco Bank.....................3600......45........16.9
Vanquis........................1500......70........48
Next...........................450.......45........0
LTSB Staff Car Loan............3780......179.......0.5
Lloyds TSB Staff Loan..........1600......99.05.....7
Creation.......................2500......25........0
LTSB Credit Card...............1033......23........0
Barclaycard....................2200......40........0
Total unsecured debts..........16663.....526.05....-


Monthly Budget Summary
Total monthly income.................... 2,175
Expenses (including HP & secured debts). 1,788.37
Available for debt repayments........... 386.63
Monthly UNsecured debt repayments....... 526.05
Amount short for making debt repayments. -139.42

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -16,663
Net Assets.............................. -16,663

Reproduced on Moneysavingexpert with permission, using other browser.[/i]

Depth_Charge wrote: »

Hi Matt

Its a tricky one given your employment may be at risk.

What is your employers official policy in this type of sitiuation?

There is an argument to be had that any creditor normally classed as non-priority but could have a detrimental effect on your employment thus putting payments to all creditors and everything else at risk can be treated as priority for obvious reasons. But like I say could be tricky.

Also your options in general could be limited / restricted due to the employment situation

Could you put up your SOA as that may give us a better idea?

Also I think it would be best to speak to one of the free agencies such as CAB, CCCS and National Debtline before you make any decisions

rising_from_the_ashes

I agree with Depth Charge and would suggest trying to find out the policy on employees / debts (defaults / dmp etc) before progressing further.

rising_from_the_ashes

On your SOA, a few things look on the high side and by checking on comparison sites, searching around at renewal time & a bit of cutting back, hopefully you can make some savings:

Does your partner not work / contribute - are these figures your contribution & debts alone? You must at a minimum get child benefit?

debtfreewannabie wrote: »

Household Information
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 2175
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0
Total monthly income.................... 2175

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 950 this is huge - is it market value / could you downsize?
Management charge (leasehold property).. 0
Council tax............................. 140
Electricity............................. 50 on the high side, check comparison sites / bills are accurate etc
Gas..................................... 50 as above
Oil..................................... 0
Water rates............................. 34
Telephone (land line)................... 12
Mobile phone............................ 40 is this for 2? Switch to PAYG once contracts are up & use for emergencies only
TV Licence.............................. 12.12
Satellite/Cable TV...................... 0
Internet Services....................... 19 This is high - have a hunt around for a better deal
Groceries etc. ......................... 210 You could probably get £40ish off here with a bit of work - have a look at the Grocery Challenge on the Old Style board
Clothing................................ 0 Need figure in here
Petrol/diesel........................... 180
Road tax................................ 0 Need figure in here
Car Insurance........................... 0 and here
Car maintenance (including MOT)......... 0 and here
Car parking............................. 30
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0 None?
Medical (prescriptions, dentist etc).... 0 Need figure in here
Pet insurance/vet bills................. 38.25 Ouch - how many pets / have you shopped around?
Buildings insurance..................... 0
Contents insurance...................... 13
Life assurance ......................... 0 Need to get this
Other insurance......................... 0
Presents (birthday, christmas etc)...... 0 Need figure in here
Haircuts................................ 10
Entertainment........................... 0 and here
Holiday................................. 0
Emergency fund.......................... 0 and here
Total monthly expenses.................. 1788.37


Assets
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0 Need figure in here
Other assets............................ 0
Total Assets............................ 0

No Secured nor Hire Purchase Debts

Unsecured Debts
Description....................Debt......Monthly...APR
Tesco Bank.....................3600......45........16.9
Vanquis........................1500......70........48
Next...........................450.......45........0
LTSB Staff Car Loan............3780......179.......0.5
Lloyds TSB Staff Loan..........1600......99.05.....7
Creation.......................2500......25........0
LTSB Credit Card...............1033......23........0
Barclaycard....................2200......40........0
Total unsecured debts..........16663.....526.05....-


Monthly Budget Summary
Total monthly income.................... 2,175
Expenses (including HP & secured debts). 1,788.37
Available for debt repayments........... 386.63
Monthly UNsecured debt repayments....... 526.05
Amount short for making debt repayments. -139.42

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -16,663
Net Assets.............................. -16,663

Reproduced on Moneysavingexpert with permission, using other browser.[/i]

Even with some cutbacks, by the time the missing things are added in, it's still going to be very difficult to balance.

So .... it's either upping the income (partner / 2nd jobs etc) or downsizing your rent.

You don't need to post the reasons here, but have you addressed the reasons for the debts building in the first place as, until this is done, it's really hard to make progress. Best of luck

kittiej

Yes I was going to ask about child benefit, this would be £87.96 pm. In fact have you looked to see if you can get any other benefits? Look at entitledto.co.uk

I pay £9 pm with Tesco that's with registering with them online to pay by DD so you put £10 and get 10% off and triple your credit.

re groceries - you could knock quite a bit off with determination.