made the 1st step :(

jerseygirl74

Today I have finally made the 1st call to payplan to try to sort our cc and loan debt, got a telephone chat on saturday. I am so ashamed of getting in this position and really dont know how i will cope with it. I am frightened of what will happen if there is something like a household emergency and I dont have the spare income or credit facility to pay for it I dont know if they allow you any spare money to save for emergencies or xmas that kind of thing.

sickasachip13

Hi,

Don't be scared or ashamed. It's just money. Have a look at the DMP Mutual Support Thread - you'll find it really helpful.

Payplan are like CCCS and I know CCCS allow you an amount for emergency fund and present buying etc. It is scary living without credit at first, we've all been too used to it and then it ends up enslaving us!

I did a blog about my experiences of going on a dmp: http://moneyaware.co.uk/2011/09/my-debt-hell/

All the best
SAAC

lippy1923

jerseygirl74 wrote: »

Today I have finally made the 1st call to payplan to try to sort our cc and loan debt, got a telephone chat on saturday. I am so ashamed of getting in this position and really dont know how i will cope with it. I am frightened of what will happen if there is something like a household emergency and I dont have the spare income or credit facility to pay for it I dont know if they allow you any spare money to save for emergencies or xmas that kind of thing.

Well done. You should feel proud of yourself for doing the sensible thing and taking the first step
Sit down and work out all your income and outgoings prior to the telephone appointment. Then you know what you can reasonably afford to pay on debt each month. These people are here to help you.
Maybe post your soa on here as well. People on here always come up with loads of ways to make/save you money.

Good luck

jerseygirl74

thx, i will do that. We are on an interest only mortgage at the moment with no savings to pay any capital off. We think we would be better going back onto a repayment mortgage for the remaining 18 years (even though its nearly double per month) before setting up the dmp cos otherwise there is no way we could pay the money we owe on the mortgage in time, would payplan accept that or would we have to carry on interest only till the other debts are paid off, i do believe that is storing up trouble for us though as the longer we leave it the more it'll be per month. We have asked to increase the mortgage term but they wont do it.

jerseygirl74

Household Information[/b]
Number of adults in household........... 2
Number of children in household......... 1
Number of cars owned.................... 1

Monthly Income Details
Monthly income after tax................ 1728.45
Partners monthly income after tax....... 640
Benefits................................ 81.2
Other income............................ 0
Total monthly income.................... 2449.65

Monthly Expense Details
Mortgage................................ 552
Secured/HP loan repayments.............. 156
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 112
Electricity............................. 50
Gas..................................... 50
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 7.94
Mobile phone............................ 45
TV Licence.............................. 12.12
Satellite/Cable TV...................... 42
Internet Services....................... 0
Groceries etc. ......................... 300
Clothing................................ 0
Petrol/diesel........................... 80
Road tax................................ 25
Car Insurance........................... 32.1
Car maintenance (including MOT)......... 20
Car parking............................. 0
Other travel............................ 40
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 10
Pet insurance/vet bills................. 10
Buildings insurance..................... 94
Contents insurance...................... 0
Life assurance ......................... 14.63
Other insurance......................... 12.5
Presents (birthday, christmas etc)...... 50
Haircuts................................ 20
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
(Unnamed monthly expense)............... 0
Total monthly expenses.................. 1770.29


Assets
Cash.................................... 0
House value (Gross)..................... 180000
Shares and bonds........................ 0
Car(s).................................. 3000
Other assets............................ 0
Total Assets............................ 183000


Secured & HP Debts
Description....................Debt......Monthly...APR
Mortgage...................... 136000...(552)......0
Hire Purchase (HP) debt ...... 0........(156)......0
Total secured & HP debts...... 136000....-.........-

Unsecured Debts
Description....................Debt......Monthly...APR
credit cards...................29000.....500.......0
loans..........................20000.....650.......0
Total unsecured debts..........49000.....1150......-


Monthly Budget Summary
Total monthly income.................... 2,449.65
Expenses (including HP & secured debts). 1,770.29
Available for debt repayments........... 679.36
Monthly UNsecured debt repayments....... 1,150
Amount short for making debt repayments. -470.64

Personal Balance Sheet Summary
Total assets (things you own)........... 183,000
Total HP & Secured debt................. -136,000
Total Unsecured debt.................... -49,000
Net Assets.............................. -2,000

jerseygirl74

If we went onto a repayment mortgage our mortgage payment would be £940.

I know our house insurance in very high but we were flooded 5 yrs ago and no one else will touch us, im hoping this might change now we are past the 5 year anniversary

HeadAboveWater

Don't be ashamed. We've all been there too and we're here to help

Your mobile phone is high - can I assume you're in contract? Are you near the end or stuck in the middle? Maybe speak to you network provider and see if they can lower your tarriff.

£300 shopping a month sounds high - how many are you feeding? We've 5 in our house and we'd be around the £150+ mark.

Little_Miss_Uni-Debt

Hello Jerseygirl,

Well done on starting your journey.

Would it be a good idea to break your 'Credit cards' and 'loans' sections down into individual cards/lenders.

I know you're going on a DMP but I think it will give you a good understanding of what each APR% is on the cards, eg which is the most important debt to get frozen. Also it might help others here to give better advice based on their experiences with the same companies.

Also when creditors start to agree to freeze interest you know how much that equates to each month.

It's very easy to look over mis-calculations if things are bunched together.

Don't forget, it also helps you to celebrate each time a debt is cleared.

nfollows1982

Hello from a fellow newbie!

Everyone on here is really understanding and there is certainly no judging on here.

I am also with Payplan and have found them really understanding so far!

Good luck!

jerseygirl74

hi, the mobile is 3 contracts at £15 each. We have 3 in our house, 2 dogs, 1 cat, 1 snake and 7 chickens that includes food and cleaning stuff for them all

consultant31

The first thing to do is get rid of the satellite tv package - it's a luxury and you can do without it. Have a look on the Old Style board for ways of shaving about a third off your grocery bill,,,,,it all adds up to a substantial saving over a year