£10500 dmp

edited 17 November 2018 at 7:11PM in Debt Free Diaries
6 replies 663 views
Velvet99Velvet99 Forumite
5 Posts
edited 17 November 2018 at 7:11PM in Debt Free Diaries
I’m 19 and I’ve managed to get myself into quite a lot of debt. I recently contacted PayPlan and have set up a DMP.

I work part time as I’m a student. I do 25 hours a week and have to go into university 3 days a week. My income is roughly £850 a month so I’ll be paying £125 a month to the DMP.

There are 7 creditors, some with both credit cards and loans: Capital One, Tesco, NatWest, Pounds2Pocket, 118 Money, Aqua and Barclaycard.

So far, I’ve sent out the 30 day breathing space letter to all of the creditors, CapitalOne and Pounds2Pocket have replied and said they’re happy to freeze the account and will then deal with PayPlan. Nothing from the rest of the creditors yet unfortunately.

I’ve definitely been sleeping a lot better since I spoke to PayPlan, I’ve written out a budget and downloaded Money Dashboard app so hopefully I’ll be able to save a little bit.

I know that I’ve got myself into a mess but I am trying my best to sort this out.

Thanks :o

Replies

  • OnebrokeladyOnebrokelady Forumite
    5.7K Posts
    1,000 Posts Third Anniversary Name Dropper Photogenic
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    Happy new diary and well done on sorting out your debt while you are still young and studying too,does your uni have a student hardship fund,my daughter used this a couple of times when she was at uni,it didn't pay loads but every bit might help,do you not get a maintainance grant for living expenses
    Do you have any family who could help you out
    I can't think of anything else off the top of my head,hopefully someone will be along with some more ideas for you
    Original Debt Owed Jan 18 = £17,630 Paid To Date = £4,316 Now Owed = £13,301.77
    Emergency Fund = £1000 Xmas savings = £800
    House Fund = £700
  • OnebrokeladyOnebrokelady Forumite
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    Just to add you might want to post a SOA then people can look at your income and outgoings and advise you from there
    Original Debt Owed Jan 18 = £17,630 Paid To Date = £4,316 Now Owed = £13,301.77
    Emergency Fund = £1000 Xmas savings = £800
    House Fund = £700
  • enthusiasticsaverenthusiasticsaver Forumite, Board Guide
    12.7K Posts
    Eighth Anniversary 10,000 Posts Name Dropper I've been Money Tipped!
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    You should be putting money aside monthly to pay for accommodation but I cannot see how you will be able to afford that £3500 in January without a student loan payment or extra holiday pay. Approaching the University in the hope you qualify for support may be worth considering. Why don't you qualify for a student loan and have you appealed? Can your family help? £3500 is extortionate for uni accommodation assuming it is for a term and not the full academic year, is it a London Uni? Can the Uni accept monthly payments instead?
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected]
  • enthusiasticsaverenthusiasticsaver Forumite, Board Guide
    12.7K Posts
    Eighth Anniversary 10,000 Posts Name Dropper I've been Money Tipped!
    ✭✭✭✭✭
    You should have been advised that once you have decided to do a DMP you stop making payments and keep the money aside as you won't have access to borrowing but even saving the £700 a month for accommodation would have taken 5 months so it would be tight. I think approaching your university finance department is your best bet and maybe Xmas work if you can get some. I also think in the long run you will need to move to cheaper accommodation so if your accommodation provider is sympathetic speaking to them might be a good idea. The best way to work it out is do a soa including everything, accommodation and bills, food and travel and uni expenses. It is tough to do Uni though with no family support so you may need to rethink this. You are young though so are getting a tough lesson in finance now will help you in the future although that is not probably particularly helpful now. I hope you sort something out but your uni should be helping you. How are the fees being paid if you get no support?

    Flapjacks can be made quite cheaply so perhaps bake a batch of those weekly for snacks along with fruit, rice cakes etc.
    Early retired in December 2017

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages and Endowments, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to [email protected]
  • edited 17 November 2018 at 7:33PM
    Velvet99Velvet99 Forumite
    5 Posts
    edited 17 November 2018 at 7:33PM
    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 1
    Number of children in household......... 0
    Number of cars owned.................... 0

    Monthly Income Details

    Monthly income after tax................ 850
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 850


    Monthly Expense Details

    Mortgage................................ 0
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 0
    Electricity............................. 0
    Gas..................................... 0
    Oil..................................... 0
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 84.5
    TV Licence.............................. 25
    Satellite/Cable TV...................... 0
    Internet Services....................... 0
    Groceries etc. ......................... 150
    Clothing................................ 0
    Petrol/diesel........................... 0
    Road tax................................ 0
    Car Insurance........................... 0
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 200
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 0
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 0
    Holiday................................. 0
    Emergency fund.......................... 50
    Total monthly expenses.................. 509.5



    Assets

    Cash.................................... 0
    House value (Gross)..................... 0
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 0


    No Secured nor Hire Purchase Debts


    Unsecured Debts
    Description....................Debt......Monthly...APR
    PayPlan........................10500.....125.......0
    Total unsecured debts..........10500.....125.......-



    Monthly Budget Summary

    Total monthly income.................... 850
    Expenses (including HP & secured debts). 509.5
    Available for debt repayments........... 340.5
    Monthly UNsecured debt repayments....... 125
    Amount left after debt repayments....... 215.5


    Personal Balance Sheet Summary
    Total assets (things you own)........... 0
    Total HP & Secured debt................. -0
    Total Unsecured debt.................... -10,500
    Net Assets.............................. -10,500



    NatWest have contacted me, they have stated that it is 'not possible' to freeze the interest and and any charges. 118 Money have also emailed me, they're happy to freeze the account for 30 days and deal with PayPlan after :)

    I'm going to speak to my university's finance department again to see if there's anything they can do to help me, I've also put in a request to increase my working hours so hopefully that will be agreed and I'll have more money to pay off my student accommodation. My friends have been great and have made me some meals in bulk so that's a save! Yay! I'm also keeping a book and writing down everything I spend.

    I've still got to hear back from a few creditors and have contacted PayPlan about the NatWest issue, hoping NatWest defaults the account sooner rather than later. Their customer service is abysmal, fingers crossed they stop applying interest and charges. :(
  • Big Update:

    I’m now working 33 hours a week so that’s a great improvement for my wages. I’ve also been selling some things on various sites and that’s made me a little bit of extra money. Surveys are also bringing in about £10 a month which isn’t really a lot but it does help.

    No luck with the University finance department so I’m going to have to try other things. I’ve started applying for courses next year, hopefully I’ll get on one closer to work so I don’t have to pay so much to commute.

    I’ve managed to pay off £2000 of my accommodation, however I have been a bit naughty by doing that, as I’ve had to borrow. Roughly £260 in arrears now as the rent was due in January but I should be able to get this paid off in March. Also missed the DMP payment this month due to an unexpected expense.

    I’ve been getting better at budgeting recently by making sure that all necessary payments come out on payday as well as constantly checking and updating my budget spreadsheets. I’ve decided to try and save as much as possible rather than paying extra off of my DMP. I really need some new clothes and boots as well as needing to secure accommodation for the next student year. I also haven’t had New glasses for a number of years and being partially sighted means that this is having an impact on my day-to-day life, so I’m going to also try to save for a new pair of glasses.

    Basically the goal for the next few months is to just be as frugal as possible so that I can save as much money as possible. The goal is to have as much money as possible saved by May, so that I can do the wardrobe refresh and secure new accommodation then. I’ll also have a lot more free time in the summer so plan to get a second full-time job then.
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