min and max expenses prices on a DMP

stu12345_2

hi.little update and questions on my current situation.
I will continue my dmp .not going for a dro as will continue to work full time .myself and wife.
going back to stepchange. I explained that I am 2 weeks in rent arrears and one month in electricity arrears.to them.
I also need more fast  bulk savings for a replacement second hand car and regular visits to my sick mother who is 87 and lives 600 miles away.
stepchange call handler spoke to her boss.they admit £50 is normal max emergency fund for ,2 people a month.
they said pay them £100 a month for 3 months.them go back to a norma higher dmp
they will tell creditors I have some unpaid priority debts.
so this will help us do a bulk fast save.
but don't think it's still enough saved up.fast.
so when we go back to normal DMP payments.i wish to know does anyone have a list for min max allowances for each expenses that is fair for 2 folk.
I feel our food.rent.gas etc is fine.but we are underspending  on haircuts clothes xmas.but that won't cut the mustard.
so need to raise some expenses.then maybe not spend as much sometimes to keep emergency total fund high as we can.and add to it.
ps
also found out 8 of our 10 debts are defaulted.2 debts are marked as running fine! checked on clearscore site.
looked online for a fair use expenses table for 2 .folk .only came across a couple of websites for IVAs with what they suggest. and outdated.
the problem was no DMP  website advice is showing an allowance for car replacement.they show car repairs MOT servicing budget.BUT no replacement budget.the £50 a month emergency is for white goods, boiler etc.but I need to replace car every say 2 yrs with another old car.£1600 to £2000 with a 3 month warranty.
stepchange CAB I spoke to said it's true .there is no allowance for that despite dmps lasting 5 yrs plus.lomger than folk expect their old car to last.
and there is no DMP allowance for regular visits to my elderly sick mother.eg plane and hotel expenses needed.3 missed DMP.payments over last 12 months due to the expense.
it isn't a holiday when I visit her!
so they suggested upping some expenses  but at same time try not to spend that figure every month.
I simply want some figures posted that is min and max so I know what is fair use.

Floss

Re: the 2 debts not listed on Clearscore - check the other 2 reports, and closed accounts too.

Re: Stepchange & the emergency fund... I think it has been suggested in your other thread that you stop your DMP with them, to go self-managed, saving your payments into an emergency fund until your creditors have all defaulted & been in contact with you. Then set up smaller payments to enable you to build up a car replacement fund & to pay for family visits.

stu12345_2

not going self managed.just looking for a table with figures for min and max allowances.thr 2 debts not defaulted are credit cards still showing as making min payment on.

Rob5342

It doesn't seem very productive to me to try and come up with a budget just to satisfy your creditors and Stepchange, and then try and spend less than that to cover what you actually need.

You'd be much better off coming up with a budget of your own that covers everything and that you can reaslitically stick to, and then use what's left towards your debts. If you manage it yourself you just tell your creditors what you'll be paying, you don't need to give them any other details.Stepchange can be helpful but they have a very rigid approach which can often make things far more difficult than they need to be.

stu12345_2

I know there are guidelines even if you are doing it by yourself that creditors have and  if they think it's too low or too high they can reject it. I did find online what the guidelines are in an IVA. I assume they will be the same in a dmp. well if it means our emergency fund is going to be £150 a month and clothing fund £100 a month.. and car repair fund £80 a month.so be it 

enthusiasticsaver

As far as I know there is no minimum or maximum on categories for a DMP.  Your best bet is to come up with a budget which works for you. Not everyone has a sick and elderly mother or an old car so what works for others may not work for you. Why not just delay setting up the DMP until you have saved enough? 

The creditors may reject it but there is little they can do. 

sourcrates

When you are in a self managed DMP, only you are in charge of it.

Forget what stepchange have told you, there are no allowances for this, that and the other, you have a workable budget set to your circumstances, no one else dictates your budget spending but you, it`s no one else's business what you do with your own money, your creditors have no right or need to know what you spend on anything, including credit repayments.

That is your starting point, your "line in the sand" you have a workable budget that suits your needs, and you don`t go looking for anyone`s approval for it, you tell your creditors what they will be paid and when, with no discussion about it, if they don`t like that approach, then let them sell the debt to someone else, its not your problem.

That is how you self manage a DMP, you are the boss, you need to act like one.

backinbusiness

Stu you are panicking again - please, please listen to what sourcrates (above) said.  You are in charge - and you tell them!

Rob5342

backinbusiness said:

Stu you are panicking again - please, please listen to what sourcrates (above) said.  You are in charge - and you tell them!

Agreed, you need to change your mndset and take control of everything now. It can be difficult when you have been in debt for so long, and the DCAs take advantage of this, but what you say goes now. I reduced my payments to Link recently, I just emailed them to tell them what the new payment would be and left it at that.

stu12345_2

yes, even if i go it alone or  via stepchange i will set my own budget, i am asking this cos is we ever go down the IVA, DRO or bankruptcy route , I did look at the guidelines set by the OR, compared to what i actually use.
 It seems via a IVA, DRO or bankruptcy are strict eg food, £300, clothes £50, entertainment, £40 a couple, car mot/servicing £40 , £50 emergency fund.monthly max, via the official routes.
I had worked out it will take around 5 yrs on a  dmp based on what we really spend a month, but if we did bankruptcy whilst we remain in fulltime jobs we would probably pay an IPA for 3 yrs at more monthly than what we would give to our creditors monthly on a dmp,( even tho it would last for 3 yrs max)  the OR would force us to really live more stricter ( eg but  our  car repairs, servicing, savings,  emergency fund, vet bills, entertainment, would be higher than OR allowable figures)( thus a dmp would allow us to live to a more realistic standard)
thus if we did a bankruptcy etc, we would struggle with  the restrictive set living expenses rules.( even tho its 3 yrs versus (5 yrs debt free dmp calculations)  
as realistically we could give say £400 a month on a dmp.but I think via bankruptcy based on the rules we would get hit with a IPA of £600.

Floss

@stu12345_2 there are consequences to doing an IVA or going bankrupt, please take proper advice before you decide on either of those. Also a DRO has certain requirements to be eligible.

You are in control on a DMP - you pay what you can. If you get a pay rise you can pay extra to any of the debts, or save it for when those settlement offers come in.