Payplan/Stepchange budget help

Anxietyoverload

Hi,

I’ve put my SOA on here before but I’ve since updated it as some incomings and outgoings have changed based on life circumstances. I’ve been to CAB today who were lovely and agreed a DRO would be the best option for me. They looked at my SOA (see below) and said there’s nothing out of the ordinary and all looks good. Unfortunately there are no intermediaries in my area so they’ve recommended step change or payplan.

However when I put it on Stepchange/payplan they have slightly different headings and I think I’m putting it in wrong or some parts they won’t let me. Like for groceries they say a family of my size should be £300, but CAB and others on here have advised that £400 is fine? Any help appreciated as getting so confused and frustrated with it all, just want someone to say yes to this DRO so I can move forward with my life.

Statement of Affairs and Personal Balance Sheet

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

Monthly Income Details
Monthly income after tax................ 853
Partners monthly income after tax....... 0
Benefits................................ 928
Other income............................ 0
Total monthly income.................... 1781

Monthly Expense Details
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 529
Management charge (leasehold property).. 0
Council tax............................. 105
Electricity............................. 40
Gas..................................... 45
Oil..................................... 0
Water rates............................. 40
Telephone (land line)................... 11
Mobile phone............................ 56
TV Licence.............................. 13
Satellite/Cable TV...................... 20
Internet Services....................... 20
Groceries etc. ......................... 400
Clothing................................ 50
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 120
Childcare/nursery....................... 103
Other child related expenses............ 50
Medical (prescriptions, dentist etc).... 25
Pet insurance/vet bills................. 0
Buildings insurance..................... 0
Contents insurance...................... 10
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 25
Haircuts................................ 25
Entertainment........................... 40
Holiday................................. 25
Emergency fund.......................... 25
Total monthly expenses.................. 1777


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
TSB overdraft..................1716.63...30........0
TSB credit card................1226.45...40........0
TSB loan.......................3050.53...115.......0
Tax credit 2...................57.32.....0.........0
Tax credit ....................132.07....0.........0
UC overpayment ................448.33....0.........0
Change Benefit.................331.46....0.........0
Benefit transfer...............641.66....0.........0
Paypal.........................1185.99...35........0
Capital one....................1325.35...40........0
Aqua loan......................3268......140.......0
Aqua credit card...............3295.1....200.......0
Total unsecured debts..........16678.89..600.......-


Monthly Budget Summary
Total monthly income.................... 1,781
Expenses (including HP & secured debts). 1,777
Available for debt repayments........... 4
Monthly UNsecured debt repayments....... 600
Amount short for making debt repayments. -596

Personal Balance Sheet Summary
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -16,678.89
Net Assets.............................. -16,678.89

Created using the SOA calculator at https://www.LemonFool.co.uk.
Reproduced on Moneysavingexpert with permission, using other browser.

sourcrates

If that`s the case, just take £100 off groceries, and add a couple of quid onto everything else, as long as the figures tally to what they are supposed to for the SOA acceptance criteria, no one will be looking over your shoulder in Morrison's to see how much you spend at the deli.

Anxietyoverload

No matter what I tell them on the phone (payplan) they are telling me that my expenses are unreasonable and a DRO would not be approved. They say I spend too much on groceries, haircuts, leisure,
 presents and holidays don’t count in a DRO. Why is it that CAB and others on here say that my budget is okay for a DRO but the services I could get a DRO with are saying not? 

crunch99

My DRO is arranged by stepchange they are the middle man and go to the court to get your DRO processed free of charge. As a single person 200 pounds for groceries is accepted. So if you have a child then that would be more. As long as you meet stepchange criteria and have less that 50 pounds credit a month then there shouldn't be any issues. Don't forget groceries Don't include cleaning products or pet products, the stepchange list is slightly different to the payplan list.

crunch99

In the past I was with payplan on payment arrangement which got extended a few times think to 9 years had bad credit rating, now on a DRO which lasts 1 year after which all debts are wiped.again effects credit rating. The thing about credit rating is a default -  missed payment stays on credit file for 6 years and so does a DRO so not much difference there. For me the first time I was in debt I believe should of chosen DRO as would of been shorter plus you have the opportunity to build your rating after 1 year some credit lenders will go on your most recent evidence so if you have good money management after 1 year they can chose to ignore the DRO notice.

Anxietyoverload

The problem I’m finding though is they’re saying many of my figures are too much and I could cut back. So they suggest bankruptcy as they believe I could have more than £50 surplus at the end of the month (I definitely don’t, I’m really struggling with some extra costs at the moment and also UC are taking money from me due to overpayments etc). They also said if I go bankruptcy route I will definitely get an IPA.

i just don’t understand that when I went to CAB and sat and went through everything with me they said my figures were all fine and agree DRO is the way to go yet the people I can actually get a DRO granted from are saying no. I’m going to ring CAB again next week and see where we go from here. I just want to move on with my life and this debt stuff is affecting my mental health greatly at the moment.

mazda333

I'm no expert about dro budgets but I will just give you my experience of stepchange.

Your budget combined for landline, mobile, cable TV and internet is £107, my budget for them was £60 and stepchange said that was a little high. I never had nothing in my budget for entertainment or holidays and they stated I wasn't allowed an emergency fund.  As for groceries they stated about £180 per adult and less for a child.  So maybe payplan and stepchange work on roughly the same budgets.

Have you been in touch with National Debtline they seem a lot more generous with their budgets and you are allowed an emergency fund with them but only 10%  of your surplus which doesnt amount to a lot.  If you do ring them be prepared to have a long wait until you get through but might be worth it in the end.  National Debtline told me it would take about 10 weeks to process everything which I felt was too long so I stuck with stepchange.

Hope that helps.
,

Anxietyoverload

Thank you for your reply. I entered a new contract when I moved in August for my mobile and internet/cable/landline. This was back when I was in blissful denial about my financial state. So I have a two year contract with 
o2 at £56 a month and
BT for cable internet and landline -£51. Will definitely reduce when these contracts are up but thats still a way off.

i didn’t realise national debt line could process DROs I will look into that too.

Anxietyoverload

Also trawling back through old posts I found a particular case about a year ago with a single mum like me, similar income, SOA and circumstances, went bankrupt and was given a hefty IPA and I saw debt doctor supported her and challenged it and eventually she was given no IPA. So I guess I’m just left scratching my head on why some people can have a budget like mine and others are told to cut back further. I’m not opposed to bankruptcy if I have no chance of a DRO but I’d also like to avoid an IPA as I don’t think I can cut back further, struggling as it is.

crunch99

Have you contacted stepchange and do you have their form? As the details you have provided above doesn't look like a stepchange form? The step change form has more detailed options. Have you remembered to list your UC debt ? When you have the form copy it and fill out one for yourself and one for your child to ensure you have every single expense/outgoing. Then combine them for the final stepchange list, I would advise like has already been stated to give figures slightly over what you have as this will protect you against any sudden increase in energy bills etc.My budget for food as single person was 200 so 300 I don't see as an issue. I would advise that you think ahead of any future expenses over the next year especially for your child and make sure they are included in the form stepchange.org/debt-info/income-and-expenditure-financial-statement.aspx

Anxietyoverload

Thank you all who have replied. I filled out all the stuff with national debt line today and they felt my budget is reasonable and will be sending me a DRO pack. Been informed their current wait is about 6 weeks. 

Feeling a bit more at ease for now