Chance to get off Debt Management Plan - can I get a loan?

January2015

LeicsRed wrote: »

I didn't include the DMP in there as I thought it was meant to be without that (i.e. to see how much we can pay towards another (free) DMP or outside of it. We're actually only paying £150 at the moment, but I'm looking to pay more now as mentioned in a previous post above.

For a true SOA, you need to include all of your debts and what you pay them each month.


Mobile phones - we have SIM only deals. I have 5Gb data and unlimited texts and calls for £9 p/m. My hubby has 3Gb data and unlimited texts and calls for £7 p/m. So total of £16 p/m

Totally understand your comment about the ridiculous price of school uniform :mad:

It's definitely worth shopping around for the car insurance though - that seems astronomical to me.

Food budgeting is a skill you need to learn. I literally had to learn to plan the week's meals and go shop for exactly what I needed. I now have it down to a fine art. I allow £5 per day for meals and an average of £2 per day for shopping that isn't meal related, e.g. laundry cleaners, soaps, etc. etc. Basically I have £200 p/m for shopping. That covers 3 adults - but in reality it covers 4 adults because we always have one or other of my family drop in for a meal - literally 5 out of 7 days if not more!

I know you have been on a DMP but to a certain extent your outgoings are still those of someone not on a DMP.

If I were you I would re-do your SOA to include all the debts. Let us know when the HMRC debt finishes, put the lowest estimate for your wife's income. For the first few months you can either not pay your DMP creditors, or if you feel unable to do that, then pay then £1 as a token to show your commitment to clear the debts. Then work out what you could offer monthly towards accepting the massive 80% reduction on the DMP debt. Every other DMP debt gets £1 a month if that debt accepts being paid the reduced offer over a few months or more.

Welcome to the forum by the way - we are all in the same boat (well some have worked hard and have the badge of honour to say they've cleared their debts.... but they've been through this as well). :beer:

LeicsRed

Through any Debt Management Company really, free or charged. I actually started with one debt management company, but they didn't seem to be doing anything, we were getting letters through still from creditors saying they weren't being paid (because they were paying others but not them), and were basically still being hounded despite being told that the debt management company would handle all this and we wouldn't have to worry about it.

I then started trying to manage it myself, but was told by a few creditors that they'd only accept if we were going through a debt management company. I tried negotiating but with no success, got stressed with all the letters flying through the door, threats of bailiffs etc., so found another company to help and all the creditors accepted again.

However, I feel I'm better at negotiating now (well, complaining really, I'm becoming quite an expert ), so I'll probably give it another go. I can't see why, if they're being offered more than they're getting now, and being given the chance to clear it within a year (or 1.5 years in Student Loans case) they wouldn't accept.

I think the car insurance is probably due renewal soon (or cancellation if the car fails badly enough) so I'll see what else I can do then. I also included the breakdown cover in there though (as it mentioned it in brackets), so insurance is a bit lower - breakdown is also very high though so I need to threaten to cancel I think and get it reduced back down).

We used to do monthly food shopping to try and stop us spending out on things we didn't need so often (always the way that you pick up little bits that you don't really need, which soon add up), but then we just found ourselves going and doing smaller shops for stuff that doesn't last long (milk and bread) and we'd end up spending on silly little things again anyway.

I'll have a look at re-doing the SOA tomorrow with some changes you suggest and will re-post. I must go to bed now or I'll be sacked in the morning and then I really will have problems

Thanks again for all the advice in here, it really is appreciated, I'll respond to any other replies tomorrow.

January2015

LeicsRed wrote: »

We used to do monthly food shopping to try and stop us spending out on things we didn't need so often (always the way that you pick up little bits that you don't really need, which soon add up), but then we just found ourselves going and doing smaller shops for stuff that doesn't last long (milk and bread) and we'd end up spending on silly little things again anyway.

I must admit I buy too much when I do monthly food shops. I plan the meals, buy the stuff, and then buy more mid month, weekends, whenever :mad:

I sorted this problem by buying daily - it works for me. I literally walk into the shop with £5 and buy the meals for that day. With Aldi prices I can get decent lunches and evening meals out of that. Once or twice a month I go in and buy the 'extras' - tea / coffee / cereals / soap powder / etc. etc.

As I said, this system works for me, and because I can pop into Aldi on my way home from work it's easy. Also there is so little wastage - I buy it, we eat it the next day

I do appreciate this won't work for everyone though - but monthly shopping was costing me more money and I was buying food and not always using it.

enthusiasticsaver

I would imagine that the HMRC money will have been clawed back by the end of the next tax year so you will then have £300 spare. It is interest free so it makes no sense to make another arrangement to pay that. I think taking on control of your debts yourself and restructuring them sounds the best way to go. It is a shame you did not post before going on to a DMP as the advice is never to go with anyone who charges a fee.