Feels like im going under!

NiteEyez1980

Hi guys 

How much emergency fund are you allowed to have (if there is a figure) as wouldn't it be frowned upon to have in effect sayings whilst on a dmp?

Also does anyone have any experience knowledge of how long it takes the following to start acting on non payment? 

Hsbc
Shawbrook
Mbna
Sainsburys 
Natwest
Virgin
Tesco

Also, as a footnote this has been such a monumental eye opener. Having reviewed everything its staggering how much was a) getting wasted but also how we relied on credit for virtually every sizeable purchase

Singlespeeder

It's the ability to pay for most foreseeable eventualities without relying on credit. 
Ideally £5000 would cover pretty much ANYTHING but I think £1000 would be wise. It'll cover most appliances in the house but not a roof / boiler.

"
Also, as a footnote this has been such a monumental eye opener. Having reviewed everything its staggering how much was a) getting wasted but also how we relied on credit for virtually every sizeable purchase"

This ! when that LBM hits, it's awesome. I was haemorrhaging money and didn't even realise it.
Getting rid of overdrafts ... straight away that saves you £40 a month per OD iirc,  that's money you REALLY need more than the bank does.  
Seriously going through 4 months worth of bank statements line by line and logging where all the money went is very enlightening. I was sure I was spending £200 on food ... turns out it was nearer £350,

You're doing great. 

NiteEyez1980

Singlespeeder said:

It's the ability to pay for most foreseeable eventualities without relying on credit. 
Ideally £5000 would cover pretty much ANYTHING but I think £1000 would be wise. It'll cover most appliances in the house but not a roof / boiler.

"
Also, as a footnote this has been such a monumental eye opener. Having reviewed everything its staggering how much was a) getting wasted but also how we relied on credit for virtually every sizeable purchase"

This ! when that LBM hits, it's awesome. I was haemorrhaging money and didn't even realise it.
Getting rid of overdrafts ... straight away that saves you £40 a month per OD iirc,  that's money you REALLY need more than the bank does.  
Seriously going through 4 months worth of bank statements line by line and logging where all the money went is very enlightening. I was sure I was spending £200 on food ... turns out it was nearer £350,

You're doing great. 

This is it 100%

I have been living in I'm overdraft for 10 years. 

I've actually gone one better and looked at years worth of statements. 

We have actually saved and paid for......nothing!!! 

Every single:

Mot, Xmas, holiday, TV, big purchase etc etc etc has been on credit!! 

It's f****G rediculous! 

It's just escalated over years to the point whereby it started a few days before end of month you'd use it to top shopping up or that unnecessary takeaway on the weekend because payday is monday and youve had a **** week....and then became the funding tool from almost week 2 onwards! 

Singlespeeder

My wages would come in and clear the OD, just. I'd pay the mortgage and BOOM straight back into the overdraft!
I just lived in the overdraft.
In the end I borrowed £2000 off my stepdad and cleared it outright. I'm proud to say I've never used it again. 
I have since repaid the loan in full.
I reduced the OD down to £500 which I will occasionally just dribble into, then I get the text saying I'm in the OD so I immediately shuffle money to bring me back out. This occurs because I run a (close to ) zero balance. All my money is budgeted and accounted for. My phone bill (£8 sim only unlimited/unlimited /12Gb) is occasionally slightly more and this tips me over. It's not a problem I make it work for me not the bank.

I haven't used a credit card in 4 years. I've kept it because I thought I might need it. I could/should maybe buy the occasional thing on it for the insurance aspect of it but I don't want to. Turns out I just don't buy much anymore, laughably as I could now afford it! Maybe that's why I can afford it

I don't know anything about DMP's so can't help there. I just sold everything I could caravan, guitar, etc and cleared the most expensive debts. I don't miss any of the items I sold.

It is a real eye opener when you realise just how much money you've wasted over the years.

EssexHebridean

I'm guessing that now you're beginning to see why your initial attempt at the SOA was so far adrift of reality, and also why you weren't making ends meet each month? 

I'm guessing you're not far off the point of being able to go through it all again with some more accurate figures? 

Do you "use your car for work" or just "travel to and from work" using it? If the former, then surely there should be some form of mileage allowance you should be able to claim from the company - as that is a lot of mileage to be doing. If the latter, have you investigated whether even part of the journey is doable cheaper by using public transport? It may even prove quicker. 

NiteEyez1980

Hi essex

I work at a hospital and my base is in Surrey so I isn't get mileage.

Unfortunately I am not entitled to mileage. 

As for public transport that's a no go. Train is £24 a day and I'd literally never be home as I'd still have to get further public transport form the station which would be another £7.50 a day which would impact my wifes evening shift work. 

No one lives near me either so can't carpool 

enthusiasticsaver

NiteEyez1980 said:

Hi guys 

How much emergency fund are you allowed to have (if there is a figure) as wouldn't it be frowned upon to have in effect sayings whilst on a dmp?

Also does anyone have any experience knowledge of how long it takes the following to start acting on non payment? 

Hsbc
Shawbrook
Mbna
Sainsburys 
Natwest
Virgin
Tesco

Also, as a footnote this has been such a monumental eye opener. Having reviewed everything its staggering how much was a) getting wasted but also how we relied on credit for virtually every sizeable purchase

It is good that you are now realising why you are in a  financial hole and lots of people make the mistake of kicking financial mistakes down the road.  At least you are dealing with it now. 

The majority of people when they start a DMP have very little savings and yes I think that credit cards and loan companies would frown on you having thousands in savings whilst defaulting on debt.  A few hundred  is ok particularly if you have a car which goes through tyres quickly. However until the DMP monthly payment starts the idea is that any money you would have sent to cards can go to emergency savings and for that reason many people delay on the DMP to give them time to save up for emergencies as you will not have access to credit once the DMP starts. That has the added benefit of making sure all creditors have defaulted the debts too. What action they take and how long they take is anyones guess. Some sell the debt on pretty quickly to debt collection agencies but you don't need to worry about them. If anything it is better as they are sometimes more liable to agree to Full and Finals further down the line meaning the debt is gone that much quicker. 

kimwp

RAS said:

Given that the official IVA, DRO and bankruptcy allowances are not public, but I've seen more generous suggestions in potential SOAs here, I'd be keen to know when the suggested limits were published, and whether the debt advice company flogs IVAs? DMPs are more generous.

It'll be worth waiting for comments from @fatbelly.

Hiya! They were this year (sent to me by one of their advisors), the debt company does sell IVAs, I posted the numbers (hopefully this was clear) as it maybe having categories or allowances that were greater than the OP had in his proposal so he could increase his allowances.

Who has access to the official allowances?

EssexHebridean

NiteEyez1980 said:

Hi essex

I work at a hospital and my base is in Surrey so I isn't get mileage.

Unfortunately I am not entitled to mileage. 

As for public transport that's a no go. Train is £24 a day and I'd literally never be home as I'd still have to get further public transport form the station which would be another £7.50 a day which would impact my wifes evening shift work. 

No one lives near me either so can't carpool 

Are you keep your eyes open for vacancies for similar roles nearer to your home? I assume that the NHS has a central website for advertising recruitment internally ? (I may be granting the NHS too much credit for joined up thinking here though!)

Is your role one which would transfer over to the private sector? If so it could be worth putting together a list of private hospitals in your area and keeping an eye on their sits vac as well? 

NiteEyez1980

Hi essex

I am but mine is a specialised role and I get 2k market force factors for surrey working.

With 23 years service if I left for private sector I'd lose my continuous service (for Redundancy), sickness and annual leave privileges etc which is one of the last safety nets left.

I am constantly on the lookout closer to home though. 

As a sitrep:

Everything has now been setup for December for direct debit etc so everything will be officially starting from December.