DMP example? (-£15,000 debt) - How much to pay every month ?

Galeeno

If there is about £15,000 of debt built up, spread over 8 creditors
(loans, overdrafts and credit cards)

Then if using a Debt management company such as Step change,

How much can they typically expect as a minimum payment?

I know it depends on income and expenditure, and other factors, and everyones income and expenditure will be different..- but just after rough figures?

but how much can they expect to be paid every month,
as a rough minimum payment? and maximum payment?

(if £50 is all that can be afforded then is £50 a month ok for the DMP?
-even if it takes a longer amount of years to pay ) ?


are you in a DMP ? How much do you pay a month? and how much is your debt ?


I know it depends on income and expenditure, and other factors, and everyones income and expenditure will be different..- but just after rough figures?

Is £50 an acceptable amount on a debt of £15,000 a month ?



Also, how many Years, can the DMP last for (min - maximum ? )

Meatloaf1981

Your DMP will be based around what money you have available each month for non-priority debt. So after you've completed your full income and expenditure form, taking into account literally EVERYTHING, right down to Car MOT, TV Licence, entertainment, Home Insurance, money for gifts and emergency funds, then you will have an amount leftover that you will have available for non-priority debts.

In my case, that amount was £225 a month but I am now having to make some cutbacks as one of my creditors is refusing the DMP.

dubs57

The amount you need to pay is determined by how much money you have left after all your living expences have been taken into account. You find this out by filling in an expences form with your financial details of income and expenditure. The amount will be different for everyone.

bess1234_2

I think the national debt line website has some guides on how much is reasonable for setting a budget. That's the way to look at it. Reasonable budget to live on first and what's left over goes to the debts. If your budget is too tight you won't keep it up, so allow yourself as much as poss, then once you ve achieved stability with it, lots of people find they can save more to end the debts quicker.

Puzzcat

You can go on the stepchange website and use the debt remedy tool which will calculate it for you. You will need know accurate income, outgoings and debts.

Depth_Charge

Galeeno wrote: »

If there is about £15,000 of debt built up, spread over 8 creditors
(loans, overdrafts and credit cards)

Then if using a Debt management company such as Step change,

How much can they typically expect as a minimum payment?

I know it depends on income and expenditure, and other factors, and everyones income and expenditure will be different..- but just after rough figures?

but how much can they expect to be paid every month,
as a rough minimum payment? and maximum payment?

(if £50 is all that can be afforded then is £50 a month ok for the DMP?
-even if it takes a longer amount of years to pay ) ?


are you in a DMP ? How much do you pay a month? and how much is your debt ?


I know it depends on income and expenditure, and other factors, and everyones income and expenditure will be different..- but just after rough figures?

Is £50 an acceptable amount on a debt of £15,000 a month ?



Also, how many Years, can the DMP last for (min - maximum ? )

Hi

Just following on from others

General information on DMPs from Citizens Advice (Cabmoney) includes providers & self administering (DIY)

https://nedcab.cabmoney.org.uk/remedy_4.asp

There may be DMP providers who have entry criteria such as a minimum amount of creditors, total debts & disposable income before they will take you on so to speak.

Link below to the free Cabmoney online DMP system (this basically does & saves everything online & you are in full control, you don't need an adviser to join or OK things etc) that might be useful depending on your circumstances and taking the above into account (it has industry recognised guideline expenditure allowance figures built in the DIY DMP)

https://nedcab.cabmoney.org.uk/dmp.asp

Always take full advice on all your options

Best wishes in whatever you decide

DC

Sazzie23

It's about what you can afford, not what is reasonable with the amount of debt, for some £50 will be accepted, for others totally unreasonable as they have more disposable income.

Also recommend the step change debtremedy, anonymously if you want to play around with the figures. Also explains what is reasonable to budget for, however the figures can be adjusted in individual circumstances.

seanavfc92

As long as you have a minimum of £40 left over after all household bills have come out (£5 per creditor), you'll be fine to go on a DMP.

Ideally the term of the plan needs to be under 20 years, so I think a minimum of £63 would allow that to happen (£63 per month every month to pay off £15,000 would take 19.84 years)

Hope this helps.

Galeeno

seanavfc92 wrote: »

As long as you have a minimum of £40 left over after all household bills have come out (£5 per creditor), you'll be fine to go on a DMP.

Ideally the term of the plan needs to be under 20 years, so I think a minimum of £63 would allow that to happen (£63 per month every month to pay off £15,000 would take 19.84 years)

Hope this helps.

Thanks.

Is that £40 a minimum given as a % of my example?

or you have knowledge of how stepchange work, so know £40 is a rough guide figure of what their minimum usually is ?

theoretica

You are unlikely to be able to get a DMP if you can afford the minimum payments on your debt so this will give a minimum length for a DMP.

seanavfc92

Galeeno wrote: »

Thanks.

Is that £40 a minimum given as a % of my example?

or you have knowledge of how stepchange work, so know £40 is a rough guide figure of what their minimum usually is ?

It's a minimum based on how many debts you have. Like I say, as long as you can afford the £5 per creditor and keep the term under 20 years, you'll be able to go on a DMP. Every penny goes towards your debts, so it all helps!