DMP mutual support thread part 13 !!

sourcrates

Mick1000 wrote: »

Evening all so after talking to SC and PP I think a DMP is right for me (they both agree), prefer the idea of a self managed option though myself after reading a chunk of this forum so will probably do that.

I have one question that I'm after some second opinions on before I start.

Long story short currently my partner and I have about £1500 we can pay towards my non-priority creditors (which we have been struggling to do for best part of a year and the debt keeps rising). In a couple months time, we're having our first child (yay - can't wait!!) and then once statutory maternity kicks in by December time we'll have about £350 we can pay towards non-priority creditors.

So, do I start now as is and then change the DMP in a few months? Or go straight in with this is where we'll be by the end of the year and this is what we can afford then. SC advised me to start now and then change again once the situation has changed again. Do others agree?

Thanks
Mick

No, save that money for the little one, you will need it, I have 3 kids, and I’d be a rich man without them lol !!

Start the DMP when the maternity pay kicks in, just inform your creditors of the situation, send them all a letter, that makes more sense to me.

Mick1000

sourcrates wrote: »

No, save that money for the little one, you will need it, I have 3 kids, and I’d be a rich man without them lol !!

Start the DMP when the maternity pay kicks in, just inform your creditors of the situation, send them all a letter, that makes more sense to me.

Sorry thanks for getting back to me but I don't quite understand your answer -I think that's my fault with a poorly worded post.

I don't have any money to save... when I say we have £1500 to go to creditors, what I mean by that is when I go through the DMP calculators etc, approx £1500 is what it comes up with to offer them all in total after priority bills/debts etc. Currently I pay them closer to £2000 each month (but not sure how - mainly by moving money from one card to the other, missing a payment here and there etc!)

So if we didn't have a little one on the way, I would be doing a DMP regardless, as our situation is far from ideal and I want to fix it before I lose all my hair.

So I guess options are:
1. do nothing now and start a DMP when mat pay kicks in
2. start DMP now with current income and then attempt a change in a few months time once circumstances have changed (and shall I tell the creditors about the upcoming change in circumstances if I was to start now)

sorry hope that helps clarify

Marble030509

Hi guys

First post in a while. A couple of things have changed in terms of circumstances over the past month or so.

As you may remember we are in £60,000ish of pure credit card debt. We wrote to all of our creditors twice telling them that we would be starting a DMP with StepChange in September (allowing us to save an EF). Many of our accounts have now defaulted apart from the usual culprits like Very etc who are still piling on that interest.

This is where it gets slightly interesting and confusing. Our EF was up to £1200 but it is now down to £300ish due to boiler repairs and failed MOT car repairs. It couldn't of come at a worse time! Obviously we are going to need a few extra months to save but this would take the time without paying to 9 months. Is this doable? Because I know the advice given on here states 6 months. If so should we write to our creditors again?

To complicate the situation even more I am now self employed not employed. This makes a mess of things with StepChange as I know they do not touch self employed people. They have directed me to a Business debt advice company instead. However my partner is still employed so how could we go about solving this. Would we have to do two single DMP's because some of the debt is in her name and some in mine? She could still do Stepchange and me go with the business one for self employed people? Obviously Stepchange has offered us a joint one which would of been so much easier.

Another problem I have is that even though I am self employed some of the questions on the website that Stepchange have directed me to are not relevant whatsoever to me. They are aimed more at people running their own business. I am basically providing freelance admin services from home for a reputable online company and I have no overheads or costs.

A little stuck on what to do. This post probably seems all over the place but I hope some sense can be taken from it. Any advice given is hugely appreciated as always.

Many thanks guys!

Suseka97

Mick1000 wrote: »

Sorry thanks for getting back to me but I don't quite understand your answer -I think that's my fault with a poorly worded post......
So I guess options are:
1. do nothing now and start a DMP when mat pay kicks in
2. start DMP now with current income and then attempt a change in a few months time once circumstances have changed (and shall I tell the creditors about the upcoming change in circumstances if I was to start now)
sorry hope that helps clarify

To clarify - what sourcrates was recommending with the 'save the money' comment was to advise you to follow your step 1. But don't do nothing - write to your creditors and let them know the situation, that is to say you are no longer able to service your debts at the current level and that you are seeking advice from StepChange or Payplan (it doesn't really matter who you refer to, seeing as you intend to go SM). Tell them that you expect to be in a position to make offers of payment in x months and leave it at that. You should head over and look at the NEDCAB website that has a wealth of information and useful templates for peeps starting out on a DMP.

Suseka97

windsor123 wrote: »

Hi there I am new to this forum. I started a DMP with Stepchange last November and I am coming up to my annual review....... Does anyone out there know if the review will be different and if they require bills/ bank statements etc?
I have kept up with my monthly payments and can pay a bit more from next year due to a pay rise so Im hoping nothing will go wrong as it has been a relief to have this. My debt is £9k so not huge but I am wanting to get it out of the way asap.

Things may have changed since my last review (some years ago) but during the 5 years I was in a DMP, each review was completed online within minutes. I didn't have to provide any further documents to substantiate any of the changes to my I & E, which were minor changes anyway. I just upped the utilities costs, as and when, and upped my take home pay - but only marginally even though my income increases were higher than I stated. I just did so to keep the DMP around the 5 year mark and so I could put aside extra income for my emergency fund. I know you want to clear your debt asap - but its better to let it run at a good pace and keep money aside for those 'unknowns' or maybe even F&Fs further down the line.

vicki84 wrote: »

Now I am getting account closure letters to I need to worry about court procedures

In short, no - you should expect your accounts to close and you will get various notifications about the impact of not making your contractual payments. Such as default notices (which you want). If you have started a DMP then that's normal and you just need to sit back and let the DMP run its course. Take time to read back on this thread and you'll find a lot of useful information.

NeverendingDMP

Hello all. Im reviewing my dmp which is self managed and wanted opinions in the following costs. Mortgage etc are all included in my dmp income and expenditure but the costs below are my variable ones. We are 2 adults 3 children in primary school and 2 cars. Do any stand out as likely to cause a problem to creditors? It would still leave me a surplus to split but its half of what it used to be. Mainly due to increased childcare costs once they are all in school. All costs are per month

Car breakdown 14 pcm petrol 150 dh 110 me car insurance 85 pcm
tv/phone/int 39 pcm Clothes inc uniforms and shoes 110
Food inc dinners toiletries 600 Entertainment 70 pcm
School snack/milk contribution 15
School trips/swim lesson contribution 18
Dentist/optician 28 i wear glasses
Energency/house repairs 25. Ive bever put this in before? Is it allowed
Xmas/b days 55 Haircuts 35 Mobiles x2 45.

Thanks for your opinions everyone.

Willing2Learn

Hi NeverendingDMP,

I think your groceries @ £600 is way high...

I always had an EF allowance in my monthly budget, so I can't see your £25 being a problem.

NeverendingDMP

Thanks. I think food worked out about 125/130 per week last time i submitted it which would be 550/560. Ill adjust that one.

January2015

Hello everyone :wave:

I've not posted in a while, and to be honest our DMP is just ticking along nicely so I have nothing much to report Just popped in to catch up and say hi to my friends on this thread.

Hope you are all keeping well and bashing those creditors I'll have a read and catch up with everything

sourcrates

January2015 wrote: »

Hello everyone :wave:

I've not posted in a while, and to be honest our DMP is just ticking along nicely so I have nothing much to report Just popped in to catch up and say hi to my friends on this thread.

Hope you are all keeping well and bashing those creditors I'll have a read and catch up with everything

Greetings January, glad all is well with you !!