DMP - help needed

rattlesnake2018

I've come to the realisation I need to sort out my debts as I cannot afford my monthly repayments. To cut a long story short, I have debts of £34,300 over 7 credit cards and 2 bank overdrafts.

I have completed an expenditure sheet, set up a new basic bank account at Santander (cannot believe you can open an account online!) and aim to run my own DMP. I have prepared letters to send to my 9 creditors and have arranged for my wage of £1202 to go to my new Santander account (although this months wage will go into my current account at Natwest where I have an overdraft). I aim to transfer this to Santander as soon as it hits my account on payday (28 Feb).

So questions...

1. I have worked out I can realistically afford to pay my 9 creditors a sum of £225 p/m on a pro-rata basis. This will increase in 6 months as I will get an additional £150 following a bump of income at work. Shall I include this expected bump in the letter to the creditors as an incentive to accept my offer?

2. I have £644 in my account to last me until 28 Feb. I need to pay 4 of my creditors the minimum monthly charge which comes to £420 which is impossible. Shall I still make a nominal payment of £10 to each creditor this month or make no payment at all?

3. I intend to start paying my creditors the pro-rata figure I have worked out on 1 March via direct debit and intend to send out my letters on 28 February. Is this the right way to go about things?

4. As I have two bank overdrafts can the banks ask for their money up front? The overdrafts total £3600. If they do, what are my options?

5. When working out my expenditure sheet I have worked out I have £249 disposable income. I intend to offer £225 p/m - is this right or do I have to offer £249 p/m towards the DMP?

I would appreciate any help as I now begin my long journey to freedom!

rattlesnake2018

By the way, I should include I have included my partner's wage on the expenditure sheet as she pays towards the bills etc and we are left with £249 as disposable income jointly.

We also have a car each (mine is worth £2250 and my partner's is worth £2000). We need these cars for travelling to work, taking our two young kids to school etc. I assume the DMP won't mean I have to sell both cars?

Grumpelstiltskin

Ok So you really need a basic bank account ie. one with no overdraft.

Also it would help if you put your SOA up ( see sticky at the top of the forum )
then people can check if your figures are correct.

A DMP is a voluntary agreement s it isn't like bankruptcy so no one is going to tell you to sell your cars.

It is important you have everything in order before you start your DMP, nothing is going to happen if you wait another month

.It could fail at the first problem you have, if you have agreed to pay more than you can afford.

zenshi

Do you have any savings in case of emergencies?

Don’t cut it so close to the bone. Give yourself some wiggle room

rattlesnake2018

Thanks for the comments thus far.

1. I have this morning set up a Basic Account at Santander and will get wages put into this account and set up 9 direct debits to my creditors.

2. It is good to know about the cars and how I cannot be forced to sell them as I cannot do without both cars.

3. My partner has just over £5000 in a savings account and if the worst did ever happen and I needed extra cash, my parents would undoubtedly help me out.

I just need clarification of whether I pay £10 towards my minimum payment for my 4 credit cards this month or shall I not pay anything?

Many thanks.

Grumpelstiltskin

Don't pay anyone yet, the worse thing you can do is panic,

The link to the SOA calculator

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

Format for MSE

I know you w0ant to do the DMP yourself but have you contacted one of the free charities for their advice?

rattlesnake2018

Here is my expenditure sheet.

Please note that I have included my partner in this expenditure sheet. We pay my parents £1000 which covers rent to live with them and all household bills.

http:// docdro.id/ZVXC7Vg

rattlesnake2018

Oops - take the space out after http:// above to hit the link.

Grumpelstiltskin

If you format your SOA for MSE you should be able to paste it.

rattlesnake2018

Just a quick couple of questions.

1. Shall I pay a nominal fee of £10 this month to four of my creditors who are seeking a minimum payment on my CC or shall I leave it?

2. I've worked out my expenditure again and it appears I have £261 disposable income. Do I need to offer all of this on my DMP as I only intended to offer £225?

Thanks.

sourcrates

rattlesnake2018 wrote: »

Just a quick couple of questions.

1. Shall I pay a nominal fee of £10 this month to four of my creditors who are seeking a minimum payment on my CC or shall I leave it?

2. I've worked out my expenditure again and it appears I have £261 disposable income. Do I need to offer all of this on my DMP as I only intended to offer £225?

Thanks.

Its up to you.

Why not just take time out here.

Nothing happens quickly in debt collection, you have many months, maybe years before court action is likely, just take a few months breathing space here.

A DMP is an unregulated, gentlemens agreement to repay your debt at a rate you can afford, if your doing it yourself, then there are no rules, you decide what happens.

There is no risk to cars or property, you are way overthinking this.

You also need an emergency fund saved up, that;s your first priority.