Can I do a DMP?

beebean

Hi all,

 

I’ve been reading through the forums and was hoping for help as I’m getting so much worse with stress.

Between my mental health and Covid my spending spiralled out of control resulting in this stupid and insane amount of debt. I’ve copied across a SOA which is solely my income and bills/debt. I live with my partner but the mortgage and any loans or credit cards are all in my name. I have an IOU to my mum of £460 per month which was a loan to help me out, has roughly 6.5 years left and my partner covers this payment. He has a car which he covers all payments for but allows me use of it and he generally covers more of the groceries/household bills due to my debt. He’s rightly not wanting to enable me any longer with covering cc payments etc. as he now no longer has savings. We have a joint Monzo bank account we use to hold grocery money etc.

My Argos & Natwest CC’s are 0% interest until May and I’m unsure of the MBNA as I think some of it is 12 months and some is roughly 23 months. I’m going to go through and find cheaper deals for the mobile contracts(I cover my mums sim only), the TV & internet. I’m not sure if I should be attempting a DMP or trying to release equity from my mortgage. If I attempt to do a DMP on my own I don’t have to notify any companies beforehand do I? I’m terrified that cancelling all my direct debits due out next week is going to go so wrong. Also, with the values being lower for the Creation & Monzo/Klarna credit, should I attempt to clear these off before they default? Grateful for any advice, thank you!

[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......... 

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

Monthly Income Details[/b]

Monthly income after tax................ 2546

Partners monthly income after tax....... 0

Benefits................................ 0

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

Total monthly income.................... 2546[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 858.9

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

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

Management charge (leasehold property).. 0

Council tax............................. 182

Electricity............................. 75

Gas..................................... 75

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

Water rates............................. 0

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

Mobile phone............................ 56.9

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

Satellite/Cable TV...................... 36.5

Internet Services....................... 44.42

Groceries etc. ......................... 150

Clothing................................ 0

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

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

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

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

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

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

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

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

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

Pet insurance/vet bills................. 63.02

Buildings insurance..................... 60.87

Contents insurance...................... 0

Life assurance ......................... 55.32

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

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

Haircuts................................ 26

Entertainment........................... 0

Holiday................................. 0

Emergency fund.......................... 0

Ring doorbell........................... 9

Bank fee................................ 12

Microsoft storage....................... 10

Union................................... 25.01

Dog groom............................... 31

Pet food................................ 46[b]

Total monthly expenses.................. 1880.19[/b]

[b]

Assets[/b]

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

House value (Gross)..................... 195000

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

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

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

Total Assets............................ 195000[/b]

[b]

Secured & HP Debts[/b]

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

Mortgage...................... 138959...(858.9)....0[b]

Total secured & HP debts...... 138959....-.........-   [/b]

[b]Unsecured Debts[/b]

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

Novuna Carpet Loan.............1023......93.04.....0

Paypal.........................4000......119.2.....15.4

Argos CC.......................1003......50........0

Tesco Loan.....................26785.....608.7.....14

Klarna.........................780.31....120.......0

Monzo..........................564.34....61.58.....0

Creation - JL Loan.............469.99....16.45.....0

Natwest CC.....................2144......42.9......0

MBNA CC........................8200......204.5.....0[b]

RAS

For your partner's sake, you need to close that joint Monzo account before you stop paying other creditors. Otherwise you damage his credit rating. Is that the account with £560ish owning or another?

Your consumer credit isn't too bad, although plainly you've consolidated before and presumably the debt to your mother is similarly acquired?  If you use any formal debt remedy, your debt to your mother will be treated the same as the debt to your mother.

Any informal remedy is going to be a long ride.

beebean

No the account with 560 owing is linked to my own personal monzo account only. The joint account is just solely for debit and I can close that before I were to default on anything.

Yeah I'd attempted to consolidate previously and hadn't learned to budget properly and over extended myself completely. Would you advise using a formal debt remedy instead like Stepchange?

RAS

Step change is an organisation who offer formal and informal debt remedies.  Formal remedies like IVAs and bankruptcy mean the equity in your house would be used to pay off your creditors. Informal remedies include Debt Management Plans (DMPs).

beebean

Ah thank you I wasn't aware of the differences before. Is it an option to release equity without the sale of the home? I'm not sure if being base in Scotland makes a difference but I'm absolutely terrified of losing my home. Would you recommend a formal debt remedy given the level of debt I have? 

EssexHebridean

Regardless of anything else, you need to cancel those DDs for the debt payments I think - you don't have enough money to cover them, do you? 

beebean

Sorry I should have said, the month is the last I'd be able to cover all minimum payments due to my partner giving me extra but I'd be unable to pay the dds due at the beginning of March.

Grumpelstiltskin

OK So you are in Scotland, things are different to England and Wales.

Start here. Debt Arrangement Scheme Advice in Scotland. StepChange.

A quick look at your SOA Buildings insurance £60 monthly? Are you living in a castle?