Self Managed DMP

Fixmeup

Following my previous post, please see my SOA. Not sure what you should put about the overdraft.

I am thinking to default my debts and then start a DMP with interest frozen as the level of interest is impacting my ability to reduce debt.

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 2

Number of children in household......... 2

Number of cars owned.................... 2[b]

Monthly Income Details[/b]

Monthly income after tax................ 3350

Partners monthly income after tax....... 400

Benefits................................ 145

Other income............................ 0[b]

Total monthly income.................... 3895[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 843.6

Secured/HP loan repayments.............. 0

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 178

Electricity............................. 60

Gas..................................... 55

Oil..................................... 0

Water rates............................. 31.5

Telephone (land line)................... 22

Mobile phone............................ 0

TV Licence.............................. 13.37

Satellite/Cable TV...................... 0

Internet Services....................... 15

Groceries etc. ......................... 250

Clothing................................ 50

Petrol/diesel........................... 100

Road tax................................ 19.25

Car Insurance........................... 20

Car maintenance (including MOT)......... 25

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 60

Medical (prescriptions, dentist etc).... 10

Pet insurance/vet bills................. 80.7

Buildings insurance..................... 10

Contents insurance...................... 15

Life assurance ......................... 0

Other insurance......................... 0

Presents (birthday, christmas etc)...... 50

Haircuts................................ 30

Entertainment........................... 100

Holiday................................. 100

Emergency fund.......................... 100

Gym..................................... 70[b]

Total monthly expenses.................. 2308.42[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 360000

Shares and bonds........................ 0

Car(s).................................. 8000

Other assets............................ 0[b]

Total Assets............................ 368000[/b]

[b]

Secured & HP Debts[/b]

Description....................Debt......Monthly...APR

Mortgage...................... 211000...(843.6)....2.18[b]

Total secured & HP debts...... 211000....-.........-   [/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

Virgin.........................17260.....462.......19.17

Halifax........................12735.....329.......20.49

Barclaycard....................7080......189.......18.68

Overdraft......................4500......0.........0

Hitachi........................8700......288.......26.9

Barclaycard....................16396.....368.......7.83[b]

Total unsecured debts..........66671.....1636......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 3,895

Expenses (including HP & secured debts). 2,308.42

Available for debt repayments........... 1,586.58

Monthly UNsecured debt repayments....... 1,636[b]

Amount short for making debt repayments. -49.42[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 368,000

Total HP & Secured debt................. -211,000

Total Unsecured debt.................... -66,671[b]

Net Assets.............................. 90,329[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

fatbelly

That's probably the right strategy.

On your soa, some items looked a bit tight, some generous, which sort of balances out.

Are you still banking where you have that overdraft? Are you opening a new account unconnected to your debts and waving goodbye to that overdraft?

Fixmeup

fatbelly said:

That's probably the right strategy.

On your soa, some items looked a bit tight, some generous, which sort of balances out.

Are you still banking where you have that overdraft? Are you opening a new account unconnected to your debts and waving goodbye to that overdraft?

I wasnt really sure what happens with the overdraft. Its currently the account that I am paid in to and all the bills come out of. It's with Halifax who I also have a CC with. Should I move my pay to another account?

Fixmeup

Have been looking at StepChange instead and this looks preferable than self managed. Should I cancel DD, let my accounts default and then go through SC? Do I need to contact my card providers or just not pay and then set up with SC?

fatbelly

A lot of people start off with stepchange and move to self-managed later.

They will definitely tell you that you need a new current account with a bank that is not connected to your debts, and the Halifax card and overdraft go into the dmp. All your income and essential direct debits use the new account

You can start now by cancelling the contractual payments to the cards other than the Halifax, then wave goodbye to the Halifax once the new account is up and running.

If you still have reasonable credit history you may get a sweetener for opening a new account.

https://www.moneysavingexpert.com/banking/compare-best-bank-accounts/

Makingabobor2

We started off with Stepchange and now self manage, so much easier and at the moment the creditors are all happy to accept £1  a month, except for 1 that we pay £15 and every now and then they send F&F offers through and we have accepted a few and waiting till we are in a position to accept others. So much less hassle and worry. We changed our current account to Nationwide BTW, brilliant easy account to use and can add as many savings accounts to it as you want. Good luck

Fixmeup

Makingabobor2 said:

We started off with Stepchange and now self manage, so much easier and at the moment the creditors are all happy to accept £1  a month, except for 1 that we pay £15 and every now and then they send F&F offers through and we have accepted a few and waiting till we are in a position to accept others. So much less hassle and worry. We changed our current account to Nationwide BTW, brilliant easy account to use and can add as many savings accounts to it as you want. Good luck

Thanks @Makingabobor2. Did you default first before starting the DMP?

Fixmeup

Stepchange dont seem to be suggesting to default, just to enter the DMP?

fatbelly

Fixmeup said:

Stepchange dont seem to be suggesting to default, just to enter the DMP?

Yes,  that's what they do.

They have to present themselves as being reasonable to the creditors.

On this forum we see the advantage of defaulting first and we're 100% on your side.

Fixmeup

Thanks @fatbelly. The main thing I'm not sure about is if I should be contacting my card providers etc?

sourcrates

Fixmeup said:

Thanks @fatbelly. The main thing I'm not sure about is if I should be contacting my card providers etc?

And say what though?

If you want defaults, then talking to them will just prolong the exercise.

If you wanted to ask for help, then that`s a different matter, but you want your accounts defaulting, the best way to achieve that is to stop paying, obviously keep an eye on the post, but otherwise ignore them.

Your DMP when it is set up, will not be with these current creditors, it will be with the debt purchasing companies they sell your debts too, more than likely.

Think of this as a game, and as with every game, you have to know how to play it.