Starting a DMP

fatbelly

It looks like a dmp is your best option. I suspect what we are now looking at has taken many years of mismanagement. Turning things around may take a similar time

There are some commendably low figures in your budget, if they are true. No travel costs?

Can you give us some more detail on the mortgage and secured loan? Interest rates, fixed period, time remaining.

Any ideas around increasing income, like a lodger or 2nd job?

Peters5468

Thank you for your comments. The secured loan is the result of previous debt consolidation. The current interest rate is c.1% for a fixed term of 3 years and there is around £15,000 outstanding. 

I am unable to drive for health reasons and have a bus pass, so the main travel costs are from any train travel. I will allocate £20 per month towards this. 

Council tax............................. 119 are you paying over 10 months or 12? This is over 10 months. 

Electricity............................. 25

Gas..................................... 25 
Current direct debit for £50 per month. 

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

Water rates............................. 10 also low

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

Mobile phone............................ 10

TV Licence.............................. 13.25

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

Internet Services....................... 37

Groceries etc. ......................... 120 you could reduce this for one person

Clothing................................ 10 You need to reduce this to a socks and pants budget in the short term

Petrol/diesel........................... 0

Road tax................................ 0

Car Insurance........................... 0

Car maintenance (including MOT)......... 0

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

Other travel............................ 20

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

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 0

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

Contents insurance...................... 0 - This is combined with Buildings Insurance. Recently renewed for £110 per year. 

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

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

Presents (birthday, christmas etc)...... 20

Haircuts................................ 10

Entertainment........................... 40 

Emergency fund.......................... 650 [b] where are the savings accrued in your assets?

Total monthly expenses.................. 1333.25[/b]

[b]

Assets[/b]

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

House value (Gross)..................... 120,000  

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

Car(s).................................. 0

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

Total Assets............................ 0[/b]

fatbelly

Ok. That all looks good and the secured loan debt consolidation is a familiar story here.

I think moving to paying council tax over 12 months would be a good move from April and offset what is likely to be a 5% rise.

sammyjammy

Log onto your energy account and check the readings are up to date and see if there is a debit on your account?