Horrified. Minimum payments for life or DMP

sourcrates

Keep in mind, mobile contracts can be defaulted on the same as any other debt.

All you have to do in most cases is change the sim card, preferably for a PAYG one.

The debt can be included in any DMP.

Callister0405

Thank you for the advice, I hadn’t even thought of that regarding mobile contracts. 

Callister0405

RobM99 said:

@Callister0405 Your original post was doom and gloom. Now you're getting a grip of things. YAY!

Thank you. I still feel awful about it all and I had really hoped I would manage some miracle way of keeping up with repaying as per contracts but it I don’t think it’s a feasible option without guaranteed overtime and DMP is the way I will need to go sadly. But the damage won’t last forever and I’ve identified how my behaviour changed and what has led to all of this so I know I will never put myself in this position again.

RobM99

Don't be haunted by the past, you can sort it - and you are!

Grumpy_chap

Callister0405 said:

Telephone (land line)................... 0

Mobile phone............................ 85

TV Licence.............................. 14

Satellite/Cable TV...................... 21

Internet Services....................... 48

As others have suggested, this is an area where cost efficiencies could be possible.  The OP seems to have accepted this, although I am not convinced that the OP's proposal is the first saving to find here:

Callister0405 said:

I have been looking at the TV license as actually, we don’t watch live TV and we don’t record it. We just watch the apps I think I could cancel TV license and do without BBC app…

From the link shared by @fatbelly a TV licence is required to use any live TV including Sky / Virgin services, not just BBC and looking at the pdf document "No Licence Needed Policy", the No Licence Needed claim is that there is no "television receiving equipment" being used at the property. Unless you get rid of everything, proving that it is not used will be difficult.


I also wonder whether there is scope to make savings on the car.  I note that the OP requires a "reliable car for work":

Callister0405 said:

 My biggest concern in what option I chose is the worry about my car, I have 18 months until it’s due to be paid off or changed, I usually just change it. As I need a reliable car for work. Will being in a DMP stop this being an option? No car = no work for me as I work in the community visiting people in their homes. If I go for DMP does that mean I would have to include my car finance or can I continue my car payments? 

Any advice would be really appreciated.

Callister0405 said:

Secured/HP loan repayments.............. 218

Hire Purchase (HP) debt ...... 9362.....(218)......12[b]

A reliable car can be had for very little money and certainly does not need to be changed at the end of each PCP / HP term.  Assuming the HP debt £9k and the payments £218 are for the car, can the car be sold to repay the loan then replace with a much cheaper car.  
The criteria of "reliable car for work" can be met at very low capital cost if the car is chosen carefully.

sourcrates

Re : TV Licence, small part of your debt granted, but let me just clarify.

If you don`t watch live TV or record any content, BBC or otherwise, and you don`t use the BBC iplayer, you can sign a "no licence required" form on the TV licencing website, which lasts for 2 years.

It`s virtually impossible to block all live content as lots of channel`s stream over broadband now, but for the purpose of a licence, all you have to do is make that declaration, a TV itself is a receiver, I simply unplug my aerial, and turn off my booster, that way I can`t get a signal, so comply with regulations.

I just watch Netflix and now TV films.

"Licensable activity means using or installing any device to: a) watch or record live any programme that is included in any television programme service (i.e. a TV channel), or; b) watch or download any BBC programme on demand on BBC iPlayer. Watching or recording “live” doesn’t just refer to live action e.g. sport or news, but also refers to any content when it is broadcast or transmitted for everyone to watch at the same time. This applies regardless of the platform or provider (e.g. Freeview, Sky, Virgin Media, BT TV, or a service such as iPlayer or Amazon Prime Video).

Licensable activity does not include: a) watching programmes by means of pre-recorded media such as DVD and Blu-ray; b) downloading or watching S4C TV on demand on BBC iPlayer or listening to radio programmes on BBC iPlayer. c) downloading or watching on demand programmes from other providers, such as: • ITV Hub, All 4 or Demand 5 • Virgin Media or Sky Go • Netflix or Now TV • Apple, Roku or Amazon"

Callister0405

Regarding the car that is true I could get a reliable one which would be more cost effective I’ve just never had to think about it before… I need to look over my agreement as I think it is a lease… I tend to take them for 3/4 years then I have the option to purchase making a large end of agreement payment, hand back and walk away or transfer to new car.

As I have previously never had any money issues I have just always changed it around the 2 year mark (early). It has just suited me with work and usually get a deal to include first 2/3 services & warranty, so any issues I have I just contact them and it is usually dealt with fairly quickly without a big bill. Obviously with defaults this won’t be an option going forward and I wouldnt be able to pay the end of agreement fee to own the car so I will have to look at what cost a reliable car would be and see if I could save enough. Although I don’t know how much I am “allowed” to save when doing to DMP.

thank you all so much for your input and advice it’s really helpful

Grumpy_chap

sourcrates said:

Re : TV Licence, small part of your debt granted, but let me just clarify.

If you don`t watch live TV or record any content, BBC or otherwise, and you don`t use the BBC iplayer, you can sign a "no licence required" form on the TV licencing website, which lasts for 2 years.

It`s virtually impossible to block all live content as lots of channel`s stream over broadband now, but for the purpose of a licence, all you have to do is make that declaration, a TV itself is a receiver, I simply unplug my aerial, and turn off my booster, that way I can`t get a signal, so comply with regulations.

I just watch Netflix and now TV films.

"Licensable activity means using or installing any device to: a) watch or record live any programme that is included in any television programme service (i.e. a TV channel), or; b) watch or download any BBC programme on demand on BBC iPlayer. Watching or recording “live” doesn’t just refer to live action e.g. sport or news, but also refers to any content when it is broadcast or transmitted for everyone to watch at the same time. This applies regardless of the platform or provider (e.g. Freeview, Sky, Virgin Media, BT TV, or a service such as iPlayer or Amazon Prime Video).

Licensable activity does not include: a) watching programmes by means of pre-recorded media such as DVD and Blu-ray; b) downloading or watching S4C TV on demand on BBC iPlayer or listening to radio programmes on BBC iPlayer. c) downloading or watching on demand programmes from other providers, such as: • ITV Hub, All 4 or Demand 5 • Virgin Media or Sky Go • Netflix or Now TV • Apple, Roku or Amazon"

Thank you for clarifying - I simply put as I understood from the TV Licencing website and you clarified that the "no equipment" is achieved by "no aerial".

For the OP, the bigger saving would be in cancelling Sky as well as the TV Licence.

Callister0405

Yes we very rarely watch TV. We do use Netflix which is actually my brothers I just sign in. Youngest is a fan of Disney but again we just use another family members Disney plus sign in. But we aren’t really TV type prefer to sit and play uno or a board game. 

x_raphael_xx

Callister0405 said:

Internet Services....................... 48 - Are you in contract? I pay £28.50 for phone & internet with Sky (We don't watch TV)

Clothing................................ 35 - Do you spend this monthly? Could you cut back?

Medical (prescriptions, dentist etc).... 50 - Do you spend this monthly?

Presents (birthday, christmas etc)...... 50 - Cut back on this, could you make gifts?

Haircuts................................ 10 - Could you cut at home?

Emergency fund.......................... 25 - Personally...I would pay this towards the CC, so you're bringing down the balance. Then use the CC if and when an emergency arose.

Don't panic, take a deep breath & deal with things one step at a time