Average/reasonable length of time for DMP?

eyeopener2

OP needs something cheap and reliable.

What does the council scheme allow, and what allowances are available are the key things to know really.

gizmo111

eyeopener2 wrote: »

OP needs something cheap and reliable.

What does the council scheme allow, and what allowances are available are the key things to know really.

General outline - new cars up to £10K over 5 years
used cars up to £10k over 4 years.
Cars have to be inspected by an approved garage, chq made out to seller - usually private sales not allowed.
Anything made on sale/scrap of old vehicle has to be put towards new car.

Mileage is paid @ 45p per mile for casual users usually paid a mnth in arrears providing user is prompt in submitting to payroll.

I borrowed £8800 on used car - 48 months @£213.40 per month
If OP is an ESSENTIAL car user then allowance is around £100 per month pre tax, but essential car users are very rare these days.

tpl

Thank you everyone for replying. I need to back and re-read the posts to digest what's been said. But in terms of the car scheme I have given some of the examples of the repayment schemes below. I have a car user allowance of claiming 45p/mile for business purposes. I can borrow over a period of 12, 24, 36, 48 or 60 months (for a second hand car the min, term is 48 months),

£3000
12 months: 260/mth
24 months: £135/mth
36 months: £94/mth

£4000 -
12 months: 346/mth
24 months: £180/mth
36 months: £124/mth

5000
12 months: 433/mth
24 months: 226/mth
36 months: 155/mth .

When I went to see the local debt charity, she actually advised me not to get a £2000 car as there will probably be problems with it a couple of years down the line??? She actually advised me to borrow £4000 or £5000 to get a reliable car!!! : o I haven't been sure how much to borrow or over what time period. Has anyone suggestions on the amount I would need to spend on a reliable car that would last at me as long as possible - years....)?

I can't tell how much I appreciate the advice, its really hard trying to figure all this out on your own, so thanks again.

tpl

gizmo111 wrote: »

General outline - new cars up to £10K over 5 years
used cars up to £10k over 4 years.
Cars have to be inspected by an approved garage, chq made out to seller - usually private sales not allowed.
Anything made on sale/scrap of old vehicle has to be put towards new car.

Mileage is paid @ 45p per mile for casual users usually paid a mnth in arrears providing user is prompt in submitting to payroll.

I borrowed £8800 on used car - 48 months @£213.40 per month
If OP is an ESSENTIAL car user then allowance is around £100 per month pre tax, but essential car users are very rare these days.

Yes Gizmo, thanks, that sounds like the same as mine. I won't be an essential care user then, as I don't have an allowance of £100 per month, just mileage claim. Maybe I should get something newer (ie. about 3 years old) and pay over a longer period....?

tpl

dancingfairy wrote: »

You owe 12,000 ish? At the moment you have 224 a month 'spare' to put towards debt repayments. Not surehow much a car wouldcost you but say 100 a month? this leaves you with 124 left (plus the 100 amonth from the rent) and you'd have 224 a month to chuck at the debts. This would take you approx 4 and a bit years if interest and charges were stopped (obviously it wouldprobably take a while to get to the state of interest and charges being stopped so could be a bit longer but still doable)?
df

Thanks dancing fairy. Yes that sounds like it might be doable??, its the first time I've thought I might be able to do both (DMP and a car) - so maybe some hope?! I'm still not sure - I will look at what I should spend on a car and then see what would be left for a DMP. I will get back to you. Thanks!.

tpl

gizmo111 wrote: »

I reckon you could get a DMP started with at least £100 when the rent arrears are cleared - until then put off the new car and do a fresh SOA when you know the repayments for the car.

Yes, perhaps I should do this first. Step Change sent me the forms a couple of weeks ago, for me to do a 'do you own' DMP until I had figured about about the car.

gizmo111

tpl wrote: »

Yes Gizmo, thanks, that sounds like the same as mine. I won't be an essential care user then, as I don't have an allowance of £100 per month, just mileage claim. Maybe I should get something newer (ie. about 3 years old) and pay over a longer period....?

In which case you cannot be sacked for not having a car.

personally I would hang on to the car you have until May when it fails MOT.
In the meantime start a self managed DMP for £150 per month and in May reassess the car and budget situation and keep an eye out from March - May for something around £3000 which will use up your current surplus.
Live as frugally but as sensibly as you can between now and then and see what you can save into an emergency fund.
Don't forget Feb and Mar are council Tax free as well.
Above all don't panic it will all be sorted over the next few months.
Pleanty of people here to help you plan it and find the best option for you.

tpl

gizmo111 wrote: »

In which case you cannot be sacked for not having a car.
Maybe I couldn't get sacked, I don't know? You seem to know much more than I do!!! It says on my job pers spec that access to a car is necessary and I was asked about this at interview. It would be pretty impossible for me to do my job without a car, as well as doing community visits, I have to carry equipment regularly too.

Personally I would hang on to the car you have until May when it fails MOT.
Ok, sounds like a good idea.

In the meantime start a self managed DMP for £150 per month and in May reassess the car and budget situation and keep an eye out from March - May for something around £3000 which will use up your current surplus.
Why 150? Ah, to leave some for a car? I'd have enough (for a 3000 car) and £150 DMP then. I'll do the sums. Thanks.

Live as frugally but as sensibly as you can between now and then and see what you can save into an emergency fund.
Ok, I'll see what I can do!

Don't forget Feb and Mar are council Tax free as well.
No, I didn't realise that. That will be a big help.

Above all don't panic it will all be sorted over the next few months.
Pleanty of people here to help you plan it and find the best option for you.
Thank you, makes me want to cry! Unfortunately its in my nature to panic! There is so many uncertainties that cause so much anxiety eg. CCJ's, if my lodger left ( he mentions it sometimes, but hasn't left yet!) , that would be throw things out of the water. I know I could poss. get another one, but I'm not in a good mental health state to be able to do moment to do that. He has been here for 5 years and pretty much keeps himself to himself, with no probs.
_____________________________________________________

I'll try and keep calm. and will stay on the forums, thanks.

I need to do the calculations for a 'do my own; DMP that Step Change sent me, so I can send the letters to the creditors.

.Oh, one more thing for now...........
One of the creditors (HSBC Loan) have NEVER written to me, I haven't heard a peep out of them since defaulting which happened at the same time as my HSBC overdraft - the O/D which was sold onto a DCA.

I haven't been paying £1 to them yet, as no one has chased me for it. Does anyone know why they wouldn't have contacted me for the last year, whilst selling the HSBC O/D to a DCA? It is on my credit report. ???? So seems a bit strange really why one has gone to the DCA and the other I haven't heard from at all (and both were from HSBC at the same time).

gizmo111

In which case you cannot be sacked for not having a car.
Maybe I couldn't get sacked, I don't know? You seem to know much more than I do!!! It says on my job pers spec that access to a car is necessary and I was asked about this at interview. It would be pretty impossible for me to do my job without a car, as well as doing community visits, I have to carry equipment regularly too.

If its necassary then you are an essential car user and must have an allowance. If you are casual then in theory you can get to appointments by public transport.
What does your contract say/
I've worked for LA's for over 10 years and am a social worker - the days I don't have a car they either have to supply one or I use public transport. We used to get essential car users allowance - but when that stopped we didn't have to have transport.
You can claim extra for bulky items - around 5p per mile.

I have no idea why HSBC haven't contacted you yet - all I can say is that they will sooner or later, so best to tackle the problem now.

tpl

gizmo111 wrote: »

If its necassary then you are an essential car user and must have an allowance. If you are casual then in theory you can get to appointments by public transport.
What does your contract say/
I've just looked in my contract - it says:

Allowances
The vehicle user classification for this post is regular, you are contractually required to provide a vehicle for business purposes. You will be reimbursed for the use of this vehicle in accordance with the mileage rates quoted in the expenses policy.

So, there's nothing about getting an extra allowance, but it says I have to have a car?

I have no idea why HSBC haven't contacted you yet - all I can say is that they will sooner or later, so best to tackle the problem. now. Ok.