Can I change my DMP?

Dino123

Hi,
I'm in around £7,000 worth of debt, mostly from payday loans but have an overdraft £1500 and bank loan £1000. I got to the point where 90% of my wage each month was paying off the payday loans, leaving me with barely anything to live on so I'd take out another loan - vicious cycle! In the end I contacted PayPlan who suggested to either put me on a DMP or Bankruptcy (I'm 24 and do not like the idea of being bankrupt at this age) so I opted for the DMP. It was pretty simple to set up and im paying around £550 a month which is just over half of my monthly wage!
When I went through my outgoings and expenditure with payplan I was somewhat hesitant/ashamed to say what I really spent per month on things like going out with friends/food/clothes/toiletries etc because I felt like i should probably cut back anyway and make it look like I was actually making an effort to pay off the debts. But I'm only 2 months into my DMP and I cant live off £500 a month. I am really struggling, I literally have £13 to my name and I only got paid 10 days ago. (i was stupid and took out a payday loan so had to pay back £230 this month).
If i contact payplan would they let me lower my monthly payments already? this soon? I just feel like an absolute failure and I am so embarrassed. I also have a dentist appointment next month which will cost me £200 and I have no idea how i will be able to pay for this! Don't even know how i am going to get by this month

kram

Hi Dino123,

Post your SOA here so people could give some advice?

Here's the link:

http://www.stoozing.com/calculator/soa.php

theoretica

Reducing your payment one month for the dentist should be fine. If it is so expensive because it is private, try to find an NHS place before your next check up.

National_Debtline

Hi Dino123 and welcome to MSE,


Debt can be stressful to deal with, and budget's take time to get right - don't be so hard on yourself. If you are already taking on credit whilst in a DMP then it needs to be reviewed, long term, as well as for the dentist next month. Do not take on any more credit. You could consider asking friends/ family for help, using up the food in your freezer/ cupboards, possibly look to sell some non essentials to raise a bit of cash etc.


You can speak to Payplan but the fact that you took out a payday loan after your DMP started could be a deal breaker. If they cancel the DMP then you could look at going to a different free DMP company, such as Step Change, or even contact your local CAB. However, before you do this, post a SOA on here. You need to make sure that you can live realistically to the next one.


You should budget for everything within reason. Health, clothes, socialising etc. but it shouldn't be to excess. Remember the more you pay to your debts the quicker your debts will be repaid. Good luck,


Laura
@natdebtline