A bit stressed over my DMP with Payplan

craftbeer90

Basically I've ended up getting very stressed over a process that is supposed to minimise your stress. I understand that debt is a stressful scenario but basically, I feel like this DMP with Payplan has made me more stressed about my future.

I haven't had it very long. Creditors still ring me, and my case officer has worked out that I have a surplus of £320 after all my outgoings, and paying my council tax arrears of £300 pcm. We've actually requested that the council accept an offer of £200 as £300 recommended by Payplan was steep.

I get paid every two-weekly so its hard to put money away, especially with things that crop up, and account for my council tax repayments, and other responsibilities.

PayPlan calculated in rental arrears, because they got the wrong end of the stick. I had to tell them it was cleared, and all of a sudden our direct debit gets put up to £300, then £320. So its kind of very frustrating.

£320 is a lot to consider paying back when your paid every 14 days, and I never know from one week to next how to survive.

I sent an email about my concerns (I know they aren't therapists or out) and I got very short reply back to say that if I thought £320 was unsustainable, I should take a closer look at my income and expenditure, and that was it.

I feel like im drowning even on a DMP.

They have our joint income down as just over 2k (and then I get DLA at £320 a month). But I have a big chunk of this that is meant to go to my bank. Credit card repayments, then I have steep household outgoings too.

My partner has debts also, which limits her income. So while she earns about £1k a month, she also has her own stuff to repay. My DMP doesnt take this into consideration, as it is for me only, but since we live together it lists her income.

What can I do? I'm incredibly stressed out.

Willing2Learn

One option would be to self-manage your DMP. You could then set the payment plan to something you feel is more affordable and sustainable. It allows you to take back control. If you use NEDCAB as the tool to self-manage, then it calculates everything for you and auto-generates letters to your creditors. Have a read up on NEDCAB and see what you think.
https://nedcab.cabmoney.org.uk/

Maybe post your SOA up here so that we can see your exact situation.
http://www.stoozing.com/calculator/soa.php

Suseka97

Sound advice from W2L.

I'd add that I think part of the issue is that you both have debts and that just complicates things if you are not in a joint DMP. Which is obviously your choice to make.

I do find that the debt charities such as Payplan and StepChange set the bar high when it comes to debt repayments, their methodology is to clear your debts in the shortest time possible and they don't allow for much (if any) flexibility when it comes to living expenses.

Whatever you choose - to stick with Payplan or go self-managed, your I&E needs to be manageable and sustainable for the long haul. If that adds time to the DMP, then so be it. As long as you are being fair in terms of not over-egging your expenses, then creditors really have no option other than to accept whatever payment plan you can realistically afford.

As you said at the outset - a DMP is meant to take all that day-to-day stress away, not add to it. Once you can get things on an even footing you'll feel a whole lot better and contact from your creditors will dwindle over time.

[Deleted User]

Don't they warn anymore that entering into a repayment plan takes a couple of months to get set up, remembering the old days when I would get approached by the private dmp's they always used to warn it takes a couple of months as your often defaulted first before the thing is up and running.

Perhaps see it as a good thing that everything is being gone over with a fine tooth comb - today after querying a rocketing council tax bill which not only was it due to their error, but this 'priority' I've never missed a month's payment for, actually in the last 3 years never applied the 25% single person allowance :eek::( if it hadn't been for trying to understand why council tax was rising for no clear reason, I'd never have known. £139 per month when I've worked it out with even the revised figure quoted and 25% off it should have been more like a monthly figure of £93.50 that's what you call whipped silly always trusted priority bills from council, feel pretty sick to the point of wishing it's a joke, that the reduction wasn't applied since 2016 and if I really hadn't been looking more closely at a time when everything is questionable, it would likely never have been picked up on.

Mrs_Ryan

When I looked into doing a DMP I flat refused to give them my partner’s income as it’s nothing to do with my debt. Also I hope that they are not using your DLA as income because that’s to service the costs of your disability not to pay debts!

craftbeer90

Hello, I am still very much stressed with my situation.

I'm finding it difficult to calculate all of my outgoings to the tee, and also PayPlan seem to be factoring in my partners income, when she has debts as well, so she is limited in how she can help me.

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household.........
Number of cars owned....................

Monthly Income Details
Monthly income after tax................ 1039.18
Partners monthly income after tax....... 1000
Benefits................................ 365.73
Other income............................ 0
Total monthly income.................... 2404.91

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 480
Management charge (leasehold property).. 0
Council tax............................. 300
Electricity............................. 22.5
Gas..................................... 22.5
Oil..................................... 0
Water rates............................. 35
Telephone (land line)................... 0
Mobile phone............................ 29
TV Licence.............................. 12.54
Satellite/Cable TV...................... 85
Internet Services....................... 0
Groceries etc. ......................... 350
Clothing................................ 30
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 72
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 30
Pet insurance/vet bills................. 50
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 40
Haircuts................................ 3.33
Entertainment........................... 0
Holiday................................. 0
Emergency fund.......................... 50
Total monthly expenses.................. 1611.87


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
Vanquis Bank Credit/C..........1047......18.3......39.9
Lloyds Bank OverDraft..........350.......0.........0
LLoyds Personal Loan...........8136......219.......0
Council Tax Repayment..........2000......300.......0
Amigo..........................750.......75........0
Arvato Finance.................60........1.05......0
Sunny Payday loan..............216.......0.........0
Some of the APR rates, and min repayment details I've left because I can't work these out.

Also it suggests I have nearly £700 odd left to repay my debts - when I most certainly do not.

Can someone please suggest any further advice please.

craftbeer90

Yes, I believe they are counting it as part of 'our' overall income.

They've calculated my income as 1,039.18 pcm and partners income of 1,000pcm. Then they've calculated I get £365 DLA per month. Its actually £320.

Which makes our combined income about 2.5k per month.

Kind of frustrating really, because its making our financial situation look less dire, but when, you factor in our living expenses, the fact we have 3 cats, owe council tax on two properties, have rent to pay, electricity, water rates, and then my own debts, its not a lot at all.

Carrot007

If you partners debts are not to be part of the plan they they should not be on it.


Of course when removing your partner you will have to lower the costs to your share.


DLA is not income and should not be on it.


Then you should get a proper view.


It's hard at first and if you do not know the process it it easy to be led to filling out a SOA right.

craftbeer90

The Council tax arrears are joint, so we are both liable.

As for her debts, they aren't on there, but her income is listed, as we live together. The issue is, PayPlan see this as income that I have access too, and that I can use this income as part of our joint income, when she has just as many debts as me. So in reality, disposable household income is much much less.

YEs, I don't understand why they have included DLA. They asked me in the application for DMP because they wanted to know, but I'm sure it shouldn't be included.

How do you mean my share/costs will go down?

480 rent is the total cost of our rent, so my total I pay is 240. Which I am hesitant to tell PayPlan because then they will be like 'you have more disposable income to give to your creditors etc.

I don't quite know if my DMP is right or not, and whether I'm entirely comfortable with the surplus payments they want me to make.

elsien

If you should have £700 to repay debts on paper, and you don't, then it's not accurate.
You mention heavy household expenses - what are they and are they in your budget? If not, why not?
Your share of the costs would go down because if the DMP is just for you, it assumes your partner is paying half of the shared bills, food etc. so you only need to put 50% down for yourself. Is that not the case?
If your share of the rent is £240 but it's on your budget as the full amount, then you should have that extra left over. If not, where's it going because it sounds like the planned budget is just not right otherwise.