worried about DMP change in circumstances

friedgreen

Hi. About a year ago my OH and I were struggling as one of us was out of work and we couldn't handle our debt of about £18k with cards and loans.

We joined step change who based on our details were able to set us up on a DMP lightening the load. They also said wait a few months to get back on your feet if your circumstances change.

They now want a review and we are both working but we are getting by and not struggling anymore we are not exactly flush with cash, we're still just comfortably ok but maybe not in the eyes of our creditors.

I'm worried that now we have a bit of disposable income they'll take it all off us as they have meager amounts suggested for that, £10 for Sky or whatever, £20 on a mobile.

Has anyone else faced similar dilemas? What should I do? I'm really worried they are going to make us start paying back in full which leaves us with nothing left.

I realise I have obligations to my debt and it's no one's but mine but I don't want to end up on rations if I have to pay back in full again.

friedgreen

Can a mod move this to the DMP mutual support thread please? Posted in haste, sorry.

Puzzcat

friedgreen wrote: »

Hi. About a year ago my OH and I were struggling as one of us was out of work and we couldn't handle our debt of about £18k with cards and loans.

We joined step change who based on our details were able to set us up on a DMP lightening the load. They also said wait a few months to get back on your feet if your circumstances change.

They now want a review and we are both working but we are getting by and not struggling anymore we are not exactly flush with cash, we're still just comfortably ok but maybe not in the eyes of our creditors.

I'm worried that now we have a bit of disposable income they'll take it all off us as they have meager amounts suggested for that, £10 for Sky or whatever, £20 on a mobile.

Has anyone else faced similar dilemas? What should I do? I'm really worried they are going to make us start paying back in full which leaves us with nothing left.

I realise I have obligations to my debt and it's no one's but mine but I don't want to end up on rations if I have to pay back in full again.

Hi,
As long as you have a realistic budget you have no need to worry. Ensure you maximise the budget options available including travel costs, dry cleaning, lunches at work etc. Yes it will take longer to pay back the debt but you have to have a life whilst doing this.
Puzz.x

Sazzie23

Hi. Fried

SC ask for a annual review on behalf of creditors. I think there have been suggestions on the past to maximise the budgetry suggestions if you feel the need for extra wiggle room. Like taking up virtual smoking, pets or anything else that would keep your payments down.

Some people want to go for max repayments to get to DFD ASAP, but not everyone feels they can live like that. Make sure you fill in things like transport costs and health cost and child care costs etc, often we don't realise just how much they are costing.

I need to redo mine as I had included that OH paid towards a joint loan but doesn't now, he also contributed a bit twds housekeeping but doesn't now so my wiggle room is minus at the moment. Just deciding best way to approach it all.

KirstyO

^^^^ What Sazzie said SC are very good at telling you if you aren't spending enough on something. They want you to be in a good place and repay your debts. They have suggested budgets for everything so if you're not sure, just ask and they can suggest an amount for a category.


An extra prescription a month for both of you will get you an extra £16, if you both wear daily contact lenses that's at least £60 a month. It's the small things that give you breathing space

friedgreen

Thanks for the replies but I have totally screwed it up. I've gone and blown it and I am absolutely gutted and worried now that I am back on the breadline living hand to mouth.


I updated and added new salaries, added in buses, washing, dry cleaning, upped my gas etc.


But still the payment has gone up absolutely loads. Basically it's hand to mouth and we simply cannot function like that.


Oh well, bankruptcy here I come.

sourcrates

friedgreen wrote: »

Thanks for the replies but I have totally screwed it up. I've gone and blown it and I am absolutely gutted and worried now that I am back on the breadline living hand to mouth.


I updated and added new salaries, added in buses, washing, dry cleaning, upped my gas etc.


But still the payment has gone up absolutely loads. Basically it's hand to mouth and we simply cannot function like that.


Oh well, bankruptcy here I come.

Hi,
A DMP is not a regulated agreement, it's a voluntary agreement between you and your creditors, you decide how much you can afford to pay, not SC, if they are asking you for too much, you simply say no, and pay what you can afford.
You can also continue the arrangement without the help of a 3rd party, so no need to worry here at all.

Sazzie23

Hi Fried,

Don't give up, check out the self managed Cab site at NEDCAB and do it that way. Look at your budget, what you can afford and make offers of payment. Write to all the creditors and tell them you are going self managed and will continue with your current repayments.

You can go back to the SC review and say you messed it up and do it again, just put in different figures for salary for now, and them tell SC you are going self managed.

I am a bit concerned you can't manage on the amounts you've put into SC, do you think you could face posting your budget onto here and then post what you can't afford but can't give up and we'll try to help with ideas to cut costs because the more you can clear your debts the you'll recover from this.

P.s. I think an IVA is more likely than bankruptcy but make sure you know what you're getting into either way.

thewhiteavenger

friedgreen wrote: »

Thanks for the replies but I have totally screwed it up. I've gone and blown it and I am absolutely gutted and worried now that I am back on the breadline living hand to mouth.


I updated and added new salaries, added in buses, washing, dry cleaning, upped my gas etc.


But still the payment has gone up absolutely loads. Basically it's hand to mouth and we simply cannot function like that.


Oh well, bankruptcy here I come.

Your perceived problem is how much money you have to live on while dealing with your debt strategy. Bankruptcy wouldn't necessarily lighten that load as you are expected to give your surplus income (if over £20 per month) to the OR in an IPA, but at least this has a 3-year end point, and the living allowances are not unduly harsh.

If you went down the self managed DMP route (maybe using NADCAB help as suggested above) with a monthly payment that you were comfortable with, what timescale would you be looking at to clear your debts?