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DMP - HONEST OPINIONS?

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  • RAS
    RAS Posts: 35,589 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    You need a new basic bank account, for which no credit check is made, or an account with people like Starling or Monzo. Transfer the income, mortgage and Council Tax insurance and essential utilities. Then prioritise food and work travel.

    You need to talk to your wife, as this may affect her ability to get credit. She also needs to be handing down clothes, using charity shops, avoiding coffee and soft play dates etc.
    If you've have not made a mistake, you've made nothing
  • Msouza1
    Msouza1 Posts: 7 Forumite
    First Post First Anniversary
    [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.................... 0[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 2500
    Partners monthly income after tax....... 900
    Benefits................................ 80
    Other income............................ 380[b]
    Total monthly income.................... 3860[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 1187
    Secured/HP loan repayments.............. 380
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 165
    Electricity............................. 59
    Gas..................................... 59
    Oil..................................... 0
    Water rates............................. 45
    Telephone (land line)................... 0
    Mobile phone............................ 18
    TV Licence.............................. 25
    Satellite/Cable TV...................... 30
    Internet Services....................... 30
    Groceries etc. ......................... 300
    Clothing................................ 100
    Petrol/diesel........................... 200
    Road tax................................ 0
    Car Insurance........................... 50
    Car maintenance (including MOT)......... 300
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 50
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 36
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 100
    Haircuts................................ 100
    Entertainment........................... 150
    Holiday................................. 0
    Emergency fund.......................... 0[b]
    Total monthly expenses.................. 3384[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 300000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0[b]
    Total Assets............................ 300000[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 224086...(1187).....0
    Hire Purchase (HP) debt ...... 12743....(380)......0[b]
    Total secured & HP debts...... 236829....-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    CAPITAL ONE ...................1796......260.......0
    HSBC LOAN......................7281......225.......0
    LLOYDS CREDIT..................3973......115.......0
    IKANO..........................338.......50........0
    SANTANDER......................5144......140.......0[b]
    Total unsecured debts..........18532.....790.......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 3,860
    Expenses (including HP & secured debts). 3,384
    Available for debt repayments........... 476
    Monthly UNsecured debt repayments....... 790[b]
    Amount short for making debt repayments. -314[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 300,000
    Total HP & Secured debt................. -236,829
    Total Unsecured debt.................... -18,532[b]
    Net Assets.............................. 44,639[/b]

    [i]Created using the SOA calculator at www.LemonFool.co.uk.
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
  • Msouza1
    Msouza1 Posts: 7 Forumite
    First Post First Anniversary
    I have opened another debit card account and will shortly start transferring my direct debits manually. 

    Everyone has advised to allow for the debts to default before doing anything further, how is it possible to time these exactly? How do I enter into a DMP without instructing a third party? 
  • Floss
    Floss Posts: 9,014 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Msouza1 said:
    [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.................... 0[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 2500
    Partners monthly income after tax....... 900
    Benefits................................ 80
    Other income............................ 380[b]
    Total monthly income.................... 3860[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 1187
    Secured/HP loan repayments.............. 380
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 165
    Electricity............................. 59
    Gas..................................... 59
    Oil..................................... 0
    Water rates............................. 45
    Telephone (land line)................... 0
    Mobile phone............................ 18
    TV Licence.............................. 25
    Satellite/Cable TV...................... 30
    Internet Services....................... 30
    Groceries etc. ......................... 300
    Clothing................................ 100
    Petrol/diesel........................... 200
    Road tax................................ 0
    Car Insurance........................... 50
    Car maintenance (including MOT)......... 300
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 50
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 36
    Contents insurance...................... 0
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 100
    Haircuts................................ 100
    Entertainment........................... 150
    Holiday................................. 0
    Emergency fund.......................... 0[b]
    Total monthly expenses.................. 3384[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 300000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0[b]
    Total Assets............................ 300000[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 224086...(1187).....0
    Hire Purchase (HP) debt ...... 12743....(380)......0[b]
    Total secured & HP debts...... 236829....-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    CAPITAL ONE ...................1796......260.......0
    HSBC LOAN......................7281......225.......0
    LLOYDS CREDIT..................3973......115.......0
    IKANO..........................338.......50........0
    SANTANDER......................5144......140.......0[b]
    Total unsecured debts..........18532.....790.......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 3,860
    Expenses (including HP & secured debts). 3,384
    Available for debt repayments........... 476
    Monthly UNsecured debt repayments....... 790[b]
    Amount short for making debt repayments. -314[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 300,000
    Total HP & Secured debt................. -236,829
    Total Unsecured debt.................... -18,532[b]
    Net Assets.............................. 44,639[/b]

    [i]Created using the SOA calculator at www.LemonFool.co.uk.
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
    OK, I'm a little confused. You have listed car insurance, maintenance & diesel, but you have no car listed.

    Also, you need to get contents insurance.
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  • theoretica
    theoretica Posts: 12,691 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Is car maintenance really £3600 a year?  Or is this a typo or something other than maintenance?
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
  • RAS
    RAS Posts: 35,589 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 10 September 2024 at 10:13PM
    Msouza1 said:
    [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.................... 0[b] no car, so why the car costs?

    Monthly Income Details[/b]
    Monthly income after tax................ 2500
    Partners monthly income after tax....... 900
    Benefits................................ 80
    Other income............................ 380[b] what is this?
    Total monthly income.................... 3860[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 1187
    Secured/HP loan repayments.............. 380 - what is this for?
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 165
    Electricity............................. 59
    Gas..................................... 59
    Oil..................................... 0
    Water rates............................. 45
    Telephone (land line)................... 0
    Mobile phone............................ 18
    TV Licence.............................. 25 - it's £14plus a few pence
    Satellite/Cable TV...................... 30 - can you reduce this?
    Internet Services....................... 30
    Groceries etc. ......................... 300 - good
    Clothing................................ 100 - the adults need to go knickers and footwear only and second hand for the kids
    Petrol/diesel........................... 200
    Road tax................................ 0 - how come?
    Car Insurance........................... 50
    Car maintenance (including MOT)......... 300. massive, why not get rid?
    Car parking............................. 0. - never?
    Other travel............................ 0
    Childcare/nursery....................... 50
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 36 - does this include contents? 
    Contents insurance...................... 0 - as you need contents
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 100 - you need to cut this back
    Haircuts................................ 100 - and this 
    Entertainment........................... 150 and this 
    Holiday................................. 0 mad as it seems, do you never visit friend and relatives? 
    Emergency fund.......................... 0[b] you own a home. This covers white good breakdown, roof repairs, plumbing disasters, gutter cleaning etc. You need it
    Total monthly expenses.................. 3384[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 300000
    Shares and bonds........................ 0
    Car(s).................................. 0 -.no value? 
    Other assets............................ 0[b]
    Total Assets............................ 300000[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 224086...(1187).....0
    Hire Purchase (HP) debt ...... 12743....(380)......0[b] - what is this for?
    Total secured & HP debts...... 236829....-.........-   [/b]

    [b]Unsecured Debts[/b] 
    Description....................Debt......Monthly...APR
    CAPITAL ONE ...................1796......260.......0
    HSBC LOAN......................7281......225.......0
    LLOYDS CREDIT..................3973......115.......0
    IKANO..........................338.......50........0
    SANTANDER......................5144......140.......0[b]
    Total unsecured debts..........18532.....790.......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 3,860
    Expenses (including HP & secured debts). 3,384
    Available for debt repayments........... 476
    Monthly UNsecured debt repayments....... 790[b]
    Amount short for making debt repayments. -314[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 300,000
    Total HP & Secured debt................. -236,829
    Total Unsecured debt.................... -18,532[b]
    Net Assets.............................. 44,639[/b]

    [i]Created using the SOA calculator at www.LemonFool.co.uk.
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
    We really need the APRs on the debts. Are you struggling? Are you unable to make the contracted payments, any payments? Any chance of a 0% credit transfer for a portion of the debt?
    If you've have not made a mistake, you've made nothing
  • Msouza1
    Msouza1 Posts: 7 Forumite
    First Post First Anniversary
    RAS said:
    Msouza1 said:
    [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.................... 0[b] no car, so why the car costs?

    Monthly Income Details[/b]
    Monthly income after tax................ 2500
    Partners monthly income after tax....... 900
    Benefits................................ 80
    Other income............................ 380[b] what is this?
    Total monthly income.................... 3860[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 1187
    Secured/HP loan repayments.............. 380 - what is this for?
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 165
    Electricity............................. 59
    Gas..................................... 59
    Oil..................................... 0
    Water rates............................. 45
    Telephone (land line)................... 0
    Mobile phone............................ 18
    TV Licence.............................. 25 - it's £14plus a few pence
    Satellite/Cable TV...................... 30 - can you reduce this?
    Internet Services....................... 30
    Groceries etc. ......................... 300 - good
    Clothing................................ 100 - the adults need to go knickers and footwear only and second hand for the kids
    Petrol/diesel........................... 200
    Road tax................................ 0 - how come?
    Car Insurance........................... 50
    Car maintenance (including MOT)......... 300. massive, why not get rid?
    Car parking............................. 0. - never?
    Other travel............................ 0
    Childcare/nursery....................... 50
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 0
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 36 - does this include contents? 
    Contents insurance...................... 0 - as you need contents
    Life assurance ......................... 0
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 100 - you need to cut this back
    Haircuts................................ 100 - and this 
    Entertainment........................... 150 and this 
    Holiday................................. 0 mad as it seems, do you never visit friend and relatives? 
    Emergency fund.......................... 0[b] you own a home. This covers white good breakdown, roof repairs, plumbing disasters, gutter cleaning etc. You need it
    Total monthly expenses.................. 3384[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 300000
    Shares and bonds........................ 0
    Car(s).................................. 0 -.no value? 
    Other assets............................ 0[b]
    Total Assets............................ 300000[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 224086...(1187).....0
    Hire Purchase (HP) debt ...... 12743....(380)......0[b] - what is this for?
    Total secured & HP debts...... 236829....-.........-   [/b]

    [b]Unsecured Debts[/b] 
    Description....................Debt......Monthly...APR
    CAPITAL ONE ...................1796......260.......0
    HSBC LOAN......................7281......225.......0
    LLOYDS CREDIT..................3973......115.......0
    IKANO..........................338.......50........0
    SANTANDER......................5144......140.......0[b]
    Total unsecured debts..........18532.....790.......-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 3,860
    Expenses (including HP & secured debts). 3,384
    Available for debt repayments........... 476
    Monthly UNsecured debt repayments....... 790[b]
    Amount short for making debt repayments. -314[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 300,000
    Total HP & Secured debt................. -236,829
    Total Unsecured debt.................... -18,532[b]
    Net Assets.............................. 44,639[/b]

    [i]Created using the SOA calculator at www.LemonFool.co.uk.
    Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]
    We really need the APRs on the debts. Are you struggling? Are you unable to make the contracted payments, any payments? Any chance of a 0% credit transfer for a portion of the debt?
    Some background - I hadn't missed any credit/loan related repayments until earlier this year when I left my former employer they only paid me about £800 for my last month. This is when it started spiralling as after missing minimum payments they started building up and this is where I am now. 

    I don't own my car, it's a hire purchase and I get a car allowance (£380pcm) to cover this on top of my guaranteed wage of £2500. The car is brand new so does not require tax and also £300 is the annual cost of maintenance. 

    Things like haircuts, entertainment (family days out) are going to be included as I'm not going to stop enjoying life because of this situation. 
  • theoretica
    theoretica Posts: 12,691 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    With £300 as annual car maintenance, not monthly, that gives you another £275 on your SOA towards debt.  That would only leave you £40 short for debt repayments, which should be possible with a tiny cut down from other categories.  That you are in a spiral with missed payments etc makes it clear that the SOA you have written is a bit hopeful and you have been spending more in the past.  In order to stop the slide you need to know where that spending was and either work it into your budget, or stop it.  Do you know where you have been spending more?  Looking through the past several months of card statements and putting everything into one of the SOA categories can help you work out where your money has been going.  At the least, you need to know how fast your debt has been growing, as that lets you know how much you have been spending more than the SOA.
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
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