Getting partner on board... DMP

dadoflots

Hi all. I am just starting my journey.. I have picked up the phone and made the call to step change..

Initially I completed a budged for myself and I have £134 per month to pay my creditors.. About £18k of debt.
My partner pays out little in terms of bills, food, fuels etc just mobile bills and a child's club fee.. Everything else is paying cards and creditors. She's left with left than £100 per month disposable income. She brings in about 500 a month..

Including her in the budget leaves us with a £500 surplus for paying creditors... Debt free in 4 and a half years on £28k of debt...

I cannot convince her this is a good idea. She's resistant to giving up her credit... Even though there's nothing much left after the minimum payments... Banging my head against a wall..

Any advice?

midlander81

I feel for you with this. being debt free is 4.5 years is great, but it will take al ot longer if she carries on racking up the debt. - I am not judging, I have done it too, in fact my debts were higher than yours at their worst.

Has she said why she is so resistant?

Willing2Learn

Hi dadoflots and welcome to the forum

Maybe try something like the following:

Do a SOA (Statement of Affairs), print it out and then show it to her, in all it's glory. (There is a 'Format for Print' button at the bottom of the form). Maybe just seeing the bare facts like that will be her lightbulb moment (LBM). Do the SOA over a few weeks, tracking your money with a Spending Diary so your SOA is accurate.

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

dadoflots

Thanks. I think I will pick my moment and show her the raw fact.. And how we will be able to live differently and more comfortable with a budget.. And a DMP!

Suseka97

I do hope you manage to convince her -it's in both your interests to do this by way of a joint DMP. I guess part of the problem will be worry about not being able to access credit should an emergency arise. That's always a concern at the outset for many of us -but easily handled with a good emergency fund in the bank before you start making DMP payments.

Unfortunately it does sound as if she's still living in that 'credit bubble' -again, not judging - it's an easy trap many of us fall in to and in some ways knowing we have access to credit if its needed is a bit of a comfort blanket. I just wish my LBM had happened many years before it did.

Good luck

dadoflots

By way of an update... I seized the moment at the weekend. We sat down when the kids were occupied and went through everything.. Outcome.. We have DMP agreement. And a long term plan to buy our own house together in 8 years.. Its a way off but something to plan for.

Just a question... What's the impact on my credit score.. I should be debt free in 6 years. How long will it take to restore my credit rating to be 'mortagable'?

Willing2Learn

Well done on getting your partner on board.

dadoflots wrote: »

Just a question... What's the impact on my credit score.. I should be debt free in 6 years. How long will it take to restore my credit rating to be 'mortagable'?

Firstly, a mortgage provider or any other lender does not use the credit score. They take the data in your credit file, add it to the data you supply in your application for credit/mortgage, and score you against their independent criteria and policies.

Second. How long is your DMP expected to run for? Ideally, you want all creditors to default you now, so that your credit file is clean six years from the date(s) of default. If they don't default you, it may take far, far longer...

Edit: Okay, just read in another thread that your DMP is going to be running for two years. In that case you may be better off with an AP (Arrangement to Pay) marker instead of defaults. When you go for the mortgage, use a broker, as they should be able to get the best deal, taking in to account your damaged credit history

dadoflots

Just seen your reply.. Sorry, I haven't been on here... My DMP is for 6 years and 2 months. Debt free on 1st December 2024!

So essentially I may have to pay more for the first few years.. But I should be OK? I should have a pretty good ltv..

Willing2Learn

If you are going to be debt free in 2024, then if I were you, I would request that all credit accounts be marked as in default, backdated to when I was 3-6 months in arrears.