Silly DMP questions!

Climbingout_2

Hi all. So, it's all hit the fan and we need to sort out a DMP. We're planning to call StepChange once we have our budget written up. I am doing my best not to dissolve into total panic and trying to see this as a positive thing?!So my first stupid question is this: Is there a minimum amount that you need leftover after paying essentials to pay creditors? I think we're going to be cutting things very fine and this is the one thing that is really scaring me. I know we need to set a realistic budget that we can stick to but what if we're only left with £5 a month to pay debts?!

runforlife

Ulitmately you can offer creditors just £1 each for a while especially as you set up the DMP. This may give you time to allocate an emergency fund too.

Use Stepchanges Debt remedy tool. It is completely anonymous and allows you to enter everything into a budget. Do allow for things that you think you don't do already such as newspapers, gift aid etc. It is an allowed expense! Have a look at it before you call them. Good luck.

http://www.stepchange.org/Debtremedy.aspx

Climbingout_2

Thank you. I did have a quick look at that tool but didn't have all the figures I needed. Ok, the £1 a month thing is very reassuring!

Climbingout_2

Just thought of another question - is there a guide somewhere for what sort of amounts are 'reasonable' to spend on essentials? I know the StepChange tool will flag up anything it deems to be too high but there are some amounts that I don't know where to start with. For example, we're a family of three with a toddler who grows out of shoes rapidly (!). I'm not sure how to put a figure on our clothing and footwear allowance.

Stewart_78

It's all nonsense anyway. We spend way less than we 'should' on clothes and haircuts and more than we 'should' on food according to Payplan. It's our priority to buy good food rather than waste money on clothes and shoes. But they still said we had to adjust the figures. What's the point? We just went along with it. Tick the box and off you go. Nobody really cares.

I've been paying £1 to all my creditors for 3 years now. Payplan keep telling me that token payments shouldn't be for more than 6 months. Tough. That's all they are having at the moment.

I wouldn't worry too much. I did to start with but you get to realise that it's all a bit of a game.

Stewart_78

Oh and token payments are much more likely to get your accounts properly defaulted which although may sound bad, will be better in the long run.

sourcrates

Hi,

DMP's are unregulated, informal agreements between you and your creditors, your budget is your budget, only you can determine it, if you have a quid for each creditor left per month, then that's what they get.
You can go with stepchange, or any of the other free debt charities, but you can also do a self managed DMP as well.

Basically instead of the DMP provider contacting and paying your creditors, you do it yourself, so you retain all control over it, very easy, and simple to do.

Just another option for you to concider.