DMP advice

Marcus3344

Good morning all
I am considering going down the route of a DMP for my wife and myself.
However I could do with some advice if possible to the following questions:-
In recent days my wife has more or less maxed her account cards, Argos, next etc....
She has also bought a setter suite on an interest free three year agreement.

This type of irrational spending is why I am now staring at the scary reality that we are in a really big hole!

How would the scenario work out if I went DMP now?
To a lay person it would looks like this last batch of spending had been done intentionally?
Would the store cards frown on this and reject a DMP?
Would the Furniture shop come and re-collect the suite?
Should I return the settee and say we don’t like it, and return it under a 30 days return policy?
Really want to proved with a DMP, but do not want to do anything if it could any fraud has taken place?

I appreciate any thoughts/comments

Marcus

StopIt

Marcus3344 wrote: »

Good morning all
I am considering going down the route of a DMP for my wife and myself.
However I could do with some advice if possible to the following questions:-
In recent days my wife has more or less maxed her account cards, Argos, next etc....
She has also bought a setter suite on an interest free three year agreement.

This type of irrational spending is why I am now staring at the scary reality that we are in a really big hole!

How would the scenario work out if I went DMP now? Basically? You write to all creditors stating that you've hit a financial crisis and are working with a debt charity (Please, work with a debt charity, not a DMP company that you pay a fee for) like Stepchange to set up a DMP and they'll be in contact to set this up.
To a lay person it would looks like this last batch of spending had been done intentionally? All spending is intentional, is it not? A DMP is an informal arrangement with no set rules on when you spent the money.
Would the store cards frown on this and reject a DMP? Maybe? If they do, they'll sell on the debts, and you pay the DCA instead, happy days.
Would the Furniture shop come and re-collect the suite? Check the T&Cs. Mostly no, but they can do if they say they can.
Should I return the settee and say we don’t like it, and return it under a 30 days return policy? Yes, if you can't afford it and it'll save you money to pack back on a DMP.
Really want to proved with a DMP, but do not want to do anything if it could any fraud has taken place? And if you don't proceed, then what? You still can't pay it back I presume, hence the need for a DMP? Reckless spending isn't fraud, it's just reckless spending. If you can send any items back because this was recent, do so.

I appreciate any thoughts/comments

Marcus

Replies in red.

First, without an idea of your finances in total, I can't advise other than to say to contact a Debt Charity to help.


If you require specific help, please go to this link and post an SOA. http://www.stoozing.com/calculator/soa.php

-taff

Bankruptcy is where they check your spending history, not a DMP.

peteuk

The way I look at a DMP is they want their money, so if they rejected your offer they would have to take you to court and risk being awarded a smaller payment than the DMP.

The DMP will look at what you can spare each month and then divide it pro-rater to the people you own money to.

sourcrates

Marcus3344 wrote: »

Good morning all
I am considering going down the route of a DMP for my wife and myself.
However I could do with some advice if possible to the following questions:-
In recent days my wife has more or less maxed her account cards, Argos, next etc....
She has also bought a setter suite on an interest free three year agreement.

This type of irrational spending is why I am now staring at the scary reality that we are in a really big hole!

How would the scenario work out if I went DMP now?
To a lay person it would looks like this last batch of spending had been done intentionally?
Would the store cards frown on this and reject a DMP?
Would the Furniture shop come and re-collect the suite?
Should I return the settee and say we don’t like it, and return it under a 30 days return policy?
Really want to proved with a DMP, but do not want to do anything if it could any fraud has taken place?

I appreciate any thoughts/comments

Marcus

Your situation sounds like the average pre DMP customer to me.

It’s not looked on like that at all, should a creditor decide not to accept your DMP, all they do is sell on the debt.

Usually what you propose gets accepted, if not, you pay it anyway, the ball is then in the creditors court.

barbiedoll

You say that “you’re” considering a DMP but have you actually spoken to your wife about this? Is this why she has gone on a spending spree, before the brakes are put on her cards etc?

You absolutely need to make sure that you are BOTH on board with this. Living on a DMP budget is a shock, and can be very hard to come to terms with if either of you are not prepared to make the necessary changes and sacrifices. Have you sat down with her and gone through your budget together? I don’t know what your wife’s “irrational” spending entails, but Argos and Next don’t suggest that she’s only buying essentials. (You could argue that a sofa is essential if you don’t have one, but there are cheaper ways to obtain essential furniture)

For a DMP to work, you need her to know that this is the way things are going to be from now on. She will need to change her whole mindset, which can be very hard for someone who has no grasp of budgeting or any experience of accounting for every penny which leaves your purse or bank account. It can, however, be very rewarding, and sorting a solution to your debt problems is such a massive relief, but.....only if you realise that there is a problem in the first place!

EssexHebridean

At this point in time I suspect a DMP is simply not going to work for you as your OH is clearly a long way out of touch with the reality of your finances. What was her reasoning for increasing your debt at a point that you have already come to the conclusion that what you have is no longer manageable for you? (I'm using "you" here to mean both of you, together).

First step for me would be to put together a full SOA (statement of affairs) using the link StopIt posted earlier. Then post that in here and we can take a look - if your OH is spending like that, I'm guessing that there will potentially turn out to be a lot more slack in your budget than you currently think there is. Make the SOA honest and accurate - it needs to reflect the way things really are right now, not what you feel you "should" be doing or think we expect to see...

If you have any scope to return the sofa then for goodness sake just do it - you didn't even need to ask, did you! Personally I'd also be seeing if I could log into any online accounts (Argos, next etc) that your partner is using and changing the passwords, but that's just me...

System

The problem with a DMP is there is nothing forcing you to make payments, there is no court order taking the money out of your wages before you get it so there is nothing stopping your wife spending the money as soon as it hits the bank.

Default on a DMP and bankruptcy court is next down the line. If you own your home and it has equity in it you can expect the possibility of losing it if that happens.

You need to tell your wife that a DMP is the only option that keeps a roof over your head and if you default on the DMP that you'll lose your home, that is how serious it now is.