In Debt getting no where

Sazzie23

Hi Newjam


Good luck with making a start, being a single parent with a young child must be tough. Remember with debts the rules is that the can' t have what you haven't got. Token payments may have to be the way to go even until you decide whether to go DMP or DRO. If you start a DMP its an informal agreement and you could change to a DRO if you find it would be better in the long term.


It seems (to me) that child care costs £600 when you only earn £800 is not efficient, is there any way to cut this by changing your hours of work to different times/days getting family to cover a day. I have no idea of the benefits process but I assume this balance of work v childcare is the best way to maximise your income. There is a benefits advice thread if you think changes could help?


I'll have a quick sell of the DMP support thread while I'm here, there is lots of support and advice over there if you want to have a read.


Good luck with getting debt free.

longtermplanner

Your car is worth too much for a DRO to be possible. One option would be to sell it and buy a cheaper one and then go for a DRO.

Of course the car will be worth a lot less in a another couple of years anyway.

asparagus1968

Telephone (land line)................... 20+
Mobile phone............................ 23+
Satellite/Cable TV...................... 20+
Internet Services....................... 15 = £78 a month. you should cancel sky/cable and reduce mobile package, bundle for landline/internet can be had for less than £25 a month




Clothing................................ 50+
Haircuts................................ 25 =£75 a month, this really needs to be reduced. could you sell some of the clothes you have being buying?


And I think you should get some contents insurance (approx. £10 a month) and an emergency fund started, that will give you peace of mind and you won't need the credit cards if something crops up.


I think if I were you I would go with the dmp, you know whats what,coming in and going out and would still be able to have a decent life. sounds like you work a lot, you need something as a little treat now and then.
think if you did the £1 a month and tried saving up the rest you may get fed up/ tempted and dip into the savings pot. (but then that's because my will power is rubbish! yours may be fab:))
could you manage without a car ? could you manage public transport?
how long is it until little one goes to school, and childcare will be less? though of course the benefits that are covering this will reduce then as well.
good Luck, well done on making a start, this site is fantastic.

sourcrates

As you don't own any particular assets, such as a property, have you considered going Bankrupt ?
Not as scary as it may sound, costs around £700 to declare yourself bankrupt, lasts for one year, if you have the means, you may have to pay into it for up to 3 years, you may not, it could all be over and done with in one year, clean slate, worth getting some free advice from National debtline or stepchange, or plenty of info on the net.
13 years on a DMP just not a realistic option, its a good solution for some people, but why struggle unnecessarily ?.

asparagus1968

"It seems (to me) that child care costs £600 when you only earn £800 is not efficient,"


The benefits of over £900 cover this though.
for example, I earn £855 a month after tax, have no childcare costs as I work school hours, therefore I get £360 a month benefits.
I think it's great she is out working, if only to set her up for better times ahead.