Struggling with dmp

Sillypotato

Hi,
I’m currently under a DMP with the equivalent of 6.5k unsecured debt, credit cards/catalogues. However the dmp payment is close to £300 a month which has meant I’ve got into another 2k of debt whilst paying that just to fund day to day life (other creditors not included in the dmp originally) which yes I know isn’t and wasn’t my best idea.

I’m a single mum with two under 5’s which constantly need new clothes and eat me out of house and home.

Will the DMP people I have the agreement with have an issue with me lowering the payments substantially or am o best to consider filing for bankruptcy to start a fresh as I can’t currently see a way this will ever end and is starting to effect my mental health. I work part time as well as receiving the usual benefits.

Any advice would be appreciated.
Thanks

sourcrates

Hello there,


We need a tiny bit more detail to be honest, before we can give you any really constructive advice.


Best to fill in this statement of affairs, so we know the figures we are dealing with, try to be as honest as possible, and incude everything you spend money on :


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


Once your done, click "format for MSE" and post it under here.


May i ask who your DMP provider is ?

elsien

Who do you have the DMP with, and what is their suggestion?
Is it one of the fee paying ones, and if so have you contacted one of the debt charities?

Sillypotato

Hi,
It’s with StepChange so a free provider, the initial dmp payment was 211 when I started Oct 2017 but now has jumped to 276.
Il fill in the SOA and post.

Thanks

Sillypotato

I’ve filled this in including the new debt not currently included in the dmp. The figures for repayment are currently from the last statement they sent.
Thanks again.

Statement of Affairs and Personal Balance Sheet

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 776
Partners monthly income after tax....... 0
Benefits................................ 950
Other income............................ 0
Total monthly income.................... 1726

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 350
Management charge (leasehold property).. 0
Council tax............................. 110
Electricity............................. 35
Gas..................................... 35
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 0
Mobile phone............................ 58
TV Licence.............................. 12
Satellite/Cable TV...................... 54
Internet Services....................... 0
Groceries etc. ......................... 380
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 53
Childcare/nursery....................... 262
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)...... 20
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1439


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
Lowell finiancal ltd...........1077......45........0
Lowell finiancal ltd...........1512......63........0
Lowell finiancal ltd...........1243......52........0
Westcot........................576.......23........0
Robinson way...................400.......30........0
247moneybox....................131.......40........0
Eon............................300.......25........0
Safety net credit..............558.......30........0
Capital one ...................133.......5.........0
Capquest.......................166.......5.........0
Aqua...........................556.......11........0
Very...........................292.......12........0
Kaleidoscope ..................412.......17........0
Freemans.......................267.......11........0
Next...........................548.......21........0
Total unsecured debts..........8171......390.......-


Monthly Budget Summary
Total monthly income.................... 1,726
Expenses (including HP & secured debts). 1,439
Available for debt repayments........... 287
Monthly UNsecured debt repayments....... 390
Amount short for making debt repayments. -103

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,171
Net Assets.............................. -8,171

sourcrates

Hi,


Just a very quick once over of your SOA tells me your not budgeting correctly for the real world.

I bet you spend more on groceries than you have written down, you should have money for entertainment (2 kids yea) contents insurance, emergency fund, holiday, other child related expences........this is why your struggling, the £287 you have available for debt repayments, you dont have this, your budget could easily be adjusted to swallow this amount, as its what your really spending isnt it ?


You should be more honest with the budget, get it down to less than £50 diosposable income and look into a debt relief order (DRO).


They are designed for people in your circumstnaces.

Sillypotato

Thank you firstly.
I think I just assume disposable income would include things you listed which indeed swallow that 287 a month, and quite possibly spend that much more on groceries depending on the week.

So with that in mind, I should include all of what you suggested which is what we spend if not more but I just assumed they’d be classed as luxuries.

I’m well aware I sound stupid asking that!

Thanks again.

sourcrates

I have 3 kids, and i know how much they cost me, and we are by no means extravagant, if you put a figure in each relevant box on the SOA for stuff you spend money on, i bet in reality, you have very little left, if anything.


Are you aware of debt releif orders ?
Do you know the criteria for obtaining one ?


I would do some research on them if i were you, it could be just what you need to get out of the hole you find yourself in.

Sillypotato

I was aware of them as I’ve been looking into other options other than a dmp, but I as you say didn’t budget properly as I assumed entertainment etc is a luxury and we shouldn’t include that and just go without. But as you say we don’t have very much left at the end of the month due chasing tails to include it.

I’m going to phone StepChange Monday and see if I can switch to a DRO if that’s a thing I’m not sure how to change/set it in motion.
Thanks

sourcrates

Sillypotato wrote: »

I’m going to phone StepChange Monday and see if I can switch to a DRO if that’s a thing I’m not sure how to change/set it in motion.
Thanks

You MUST submit a new budget to them, one that is workable for you, tell them your circumstance shave worsened, and if a DRO is even to be concidered, it must show that you have £50 or less, left at month end, before any credit payments are accounted for.

John_G_Jones

Sillypotato wrote: »

I’ve filled this in including the new debt not currently included in the dmp. The figures for repayment are currently from the last statement they sent.
Thanks again.

Statement of Affairs and Personal Balance Sheet

Household Information[/b]
Number of adults in household........... 1
Number of children in household......... 2
Number of cars owned.................... 0

Monthly Income Details
Monthly income after tax................ 776
Partners monthly income after tax....... 0
Benefits................................ 950
Other income............................ 0
Total monthly income.................... 1726

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 350
Management charge (leasehold property).. 0
Council tax............................. 110
Electricity............................. 35
Gas..................................... 35
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 0
Mobile phone............................ 58
TV Licence.............................. 12
Satellite/Cable TV...................... 54
Internet Services....................... 0
Groceries etc. ......................... 380
Clothing................................ 20
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 53
Childcare/nursery....................... 262
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)...... 20
Haircuts................................ 0
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 0
Total monthly expenses.................. 1439


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
Lowell finiancal ltd...........1077......45........0
Lowell finiancal ltd...........1512......63........0
Lowell finiancal ltd...........1243......52........0
Westcot........................576.......23........0
Robinson way...................400.......30........0
247moneybox....................131.......40........0
Eon............................300.......25........0
Safety net credit..............558.......30........0
Capital one ...................133.......5.........0
Capquest.......................166.......5.........0
Aqua...........................556.......11........0
Very...........................292.......12........0
Kaleidoscope ..................412.......17........0
Freemans.......................267.......11........0
Next...........................548.......21........0
Total unsecured debts..........8171......390.......-


Monthly Budget Summary
Total monthly income.................... 1,726
Expenses (including HP & secured debts). 1,439
Available for debt repayments........... 287
Monthly UNsecured debt repayments....... 390
Amount short for making debt repayments. -103

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -8,171
Net Assets.............................. -8,171

The mobile phone and sky are not something that you’d expect to see from someone who’s struggling, why are you spending so much and when can you get out of the contracts?

If the phone contract is covering an expensive handset then sell it, out the money towards your debts and spend £5 on a used basic phone from EBay.

Stop spending on catalogues, and it looks like you could make some savings on your food shopping.

There’s nothing down for child maintenance, how much are you receiving there, or are you not the main career?