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Newbie needing advice

snowball24
snowball24 Posts: 15 Forumite
10 Posts
in Debt-free wannabe
Hello,  realised finally we will have our debts and struggle till we die if we dont change.  Mortgage company recommended Paypal, debts are high (embarrased) and costing £1200 a month.  Payplan calling tomorrow, would we be better on the DMP route? I am at a loss. 
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Comments

  • snowball24
    snowball24 Posts: 15 Forumite
    10 Posts
    Payplan.....
  • enthusiasticsaver
    enthusiasticsaver Posts: 16,253 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Difficult to say without seeing an soa (statement of account). 

    Basic questions are.
    What is the total amount of the debt? 
    What is your household income? 
    Are the payments up to date and are you paying interest?
    Is the debt rising or going down? 
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
    Save £12k in 2026 Challenge £12000/£2000
    365 day 1p Challenge 2026 £667.95/£110
    Click on this link for a Statement of Accounts that can be posted on the DebtFree Wannabe board: https://lemonfool.co.uk/financecalculators/soa.php
  • snowball24
    snowball24 Posts: 15 Forumite
    10 Posts
    Debt 65k ( terrible )
    Income only me ATM self employed average 2300 a month 
    Currently on covid holidays as husband unable to work, normally up to date and am paying interest.

    Payplan calling tomorrow 
  • Naomim
    Naomim Posts: 3,259 Forumite
    Part of the Furniture 1,000 Posts Photogenic Name Dropper
    If you complete the Statement of Affairs http://www.stoozing.com/soa.php and post it back here, we can go over it with you and see if there are any places to help you make savings.  You will have to complete one for Payplan so may as well have all the figures to hand.  

    Naomim
    Credit Cards NOV 2019 £33,220.42 Feb 2026 £14,681.00 Here's my diary: A Ditherer's Diary Again
  • enthusiasticsaver
    enthusiasticsaver Posts: 16,253 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Servicing that amount of debt just on your income sounds unaffordable especially if you have interest to pay. A DMP is probably what they will suggest but a soa will confirm it. As Naomim says you will need the figures for payplan tomorrow so best do one tonight. 
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
    Save £12k in 2026 Challenge £12000/£2000
    365 day 1p Challenge 2026 £667.95/£110
    Click on this link for a Statement of Accounts that can be posted on the DebtFree Wannabe board: https://lemonfool.co.uk/financecalculators/soa.php
  • Galloglass
    Galloglass Posts: 1,288 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper Photogenic
    edited 6 October 2020 at 7:09PM
    Mortgage company recommended ...
    All of the above plus if you have assets to protect, you'll be offered a DMP or an IVA. IVA's are known to be pushed by some organisations (not seen Payplan do it) but a [managed] DMP or a self-managed DMP are likely to be the way forward. 

    The advantage of Payplan is that they know the ropes and may be able to get charges and interest frozen, though you could try that yourself. Don't make a decision until you've worked out the options for you in the short to medium term.
    • All land is owned. If you are not on yours, you are on someone else's
    • When on someone else's be it a road, a pavement, a right of way or a property there are rules. Don't assume there are none.
    • "Free parking" doesn't mean free of rules. Check the rules and if you don't like them, go elsewhere
    • All land is owned. If you are not on yours, you are on someone else's and their rules apply.
    Just visiting - back in 2025
  • snowball24
    snowball24 Posts: 15 Forumite
    10 Posts
    [tt][b]Statement of Affairs and Personal Balance Sheet[/b][b]

    Household Information[/b]
    Number of adults in household........... 3
    Number of children in household......... 1
    Number of cars owned.................... 3[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 2200
    Partners monthly income after tax....... 0
    Benefits................................ 235
    Other income............................ 0[b]
    Total monthly income.................... 2435[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 825
    Secured/HP loan repayments.............. 56
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 180
    Electricity............................. 88
    Gas..................................... 61
    Oil..................................... 0
    Water rates............................. 65
    Telephone (land line)................... 75
    Mobile phone............................ 95
    TV Licence.............................. 35
    Satellite/Cable TV...................... 43
    Internet Services....................... 0
    Groceries etc. ......................... 500
    Clothing................................ 50
    Petrol/diesel........................... 150
    Road tax................................ 30
    Car Insurance........................... 50
    Car maintenance (including MOT)......... 25
    Car parking............................. 10
    Other travel............................ 10
    Childcare/nursery....................... 0
    Other child related expenses............ 50
    Medical (prescriptions, dentist etc).... 10
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 15
    Contents insurance...................... 0
    Life assurance ......................... 7
    Other insurance......................... 35
    Presents (birthday, christmas etc)...... 20
    Haircuts................................ 20
    Entertainment........................... 150
    Holiday................................. 100
    Emergency fund.......................... 20[b]
    Total monthly expenses.................. 2775[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 285000
    Shares and bonds........................ 0
    Car(s).................................. 8000
    Other assets............................ 0[b]
    Total Assets............................ 293000[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 77000....(825)......0
    Hire Purchase (HP) debt ...... 970......(41).......0<
    AO finance.....................1200.....(15).......0[b]
    Total secured & HP debts...... 79170.....-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Mbna ..........................14355.....320.......0
    Barclaycard ...................17648.....380.......0
    Barclayloan ...................20526.....325.......0
    Next ..........................807.......40........0
    Barclayloan....................12382.....177.......0[b]
    Total unsecured debts..........65718.....1242......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 2,435
    Expenses (including HP & secured debts). 2,775
    Available for debt repayments........... -340
    Monthly UNsecured debt repayments....... 1,242[b]
    Amount short for making debt repayments. -1,582[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 293,000
    Total HP & Secured debt................. -79,170
    Total Unsecured debt.................... -65,718[b]
    Net Assets.............................. 148,112[/b]

    [i][/i][/tt]
  • Karonher
    Karonher Posts: 965 Forumite
    Part of the Furniture 500 Posts Name Dropper
    There does seem to be a bit to cut but I cant see it being enough. Groceries are very high, holiday and entertainment needs to end for now.
    Landline seems high and the mobiles can be cut down. Having 3 cars is a problem as well especially if the other adults are not working.
    Who is the third adult and can they contribute? All but essential clothing purchases could be cut.
    Have you checked that you are on the best deal for gas and electricity?
    Aiming to make £7,500 online in 2022
  • Karonher
    Karonher Posts: 965 Forumite
    Part of the Furniture 500 Posts Name Dropper
    Meant to ask of husband cannot work at all or is it just due to covid?
    Aiming to make £7,500 online in 2022
  • snowball24
    snowball24 Posts: 15 Forumite
    10 Posts
    Hi
    HUsband has had major surgery this year so unable to return to work till early 2021.  3rd adult is teen son at uni. Cars - husband's work van, my car and son's car.
    Holidays we had booked this year but delayed to 2021 due to Covid so these are the spending money amounts for those.
    We have had to try and go out once a week as dh is getting very depressed due to being housebound for months with recovery from surgery.

    Landline also includes  internet , 
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