DMP Help

AH_

Hello all, Please can you support me in understanding my options.

Newly separated from partner, he will at this point continue to pay half the mortgage. I have added his share 700 to my wage 2600 to make my total income 3370.

I have completed a SOA as below.

I won't be able to afford all the payments and need to know what the best thing to do next would be?

It is important for me to hold onto the house for my children. Mortgage renewal in September 26 with Bank of Ireland.

The phones are me and my 2 children we are locked into contracts 

The 80 sky tv i will be canceling and switch to a cheap broadband deal from somewhere

Any support greatfully received 

Statement of Affairs and Personal Balance Sheet

Household Information

Number of adults in household........... 1

Number of children in household......... 2

Number of cars owned.................... 1

Monthly Income Details

Monthly income after tax................ 3200

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

Benefits................................ 170

Other income............................ 0

Total monthly income.................... 3370

Monthly Expense Details

Mortgage................................ 1475

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

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

Management charge (leasehold property).. 0

Council tax............................. 170

Electricity............................. 65

Gas..................................... 65

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

Water rates............................. 60

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

Mobile phone............................ 140

TV Licence.............................. 13

Satellite/Cable TV...................... 80

Internet Services....................... 30

Groceries etc. ......................... 500

Clothing................................ 100

Petrol/diesel........................... 100

Road tax................................ 13

Car Insurance........................... 30

Car maintenance (including MOT)......... 50

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

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

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

Other child related expenses............ 80

Medical (prescriptions, dentist etc).... 10

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

Buildings insurance..................... 30

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

Life assurance ......................... 55

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

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

Haircuts................................ 0

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

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

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

Total monthly expenses.................. 3116

Assets

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

House value (Gross)..................... 29000

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

Car(s).................................. 4000

Other assets............................ 0

Total Assets............................ 33000

Secured & HP Debts

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

Mortgage...................... 25400....(1475).....5.25

Total secured & HP debts...... 25400.....-.........-   

Unsecured Debts

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

Natwest loan...................17500.....300.......0

Barclaycard....................4258......100.......0

Nuvona loan....................2333......90........0

Argos..........................1300......50........0

Next...........................2900......150.......0[b]

Total unsecured debts..........28291.....690.......-  [/b]

Monthly Budget Summary

Total monthly income.................... 3,370

Expenses (including HP & secured debts). 3,116

Available for debt repayments........... 254

Monthly UNsecured debt repayments....... 690

Amount short for making debt repayments. -436

Personal Balance Sheet Summary

Total assets (things you own)........... 33,000

Total HP & Secured debt................. -25,400

Total Unsecured debt.................... -28,291

Net Assets.............................. -20,691

fatbelly

Continue to pay the mortgage but default on the other debts.

Take the view that you will enter a dmp in a few months, get your banking sorted so that you are banking where you do not have debts, and save an emergency fund.

It is going to be a long dmp and you will need to review the plan when you renew your mortgage deal with your existing lender.

Make sure you get your single adult discount on the council tax and spread the new bill over 12 months

AH_

Thank you for taking the time to reply 

So cancel all DD etc. Should I do it for all of them? I was thinking argos I could continue to pay the 50 and even have additional money to go towards clearing it if not paying everything else or best to just default and forget about it like the rest? Just would be one less default to worry about.

From reading here I believe the mortgage will be OK in that ill just have to renew with BOI there won't be any credit/affordability checks

I have already accounted for the 25% reduction council tax bringing it to 170 but forgot could spread over 12 months so that will bring it down further.

This all seems really scary ive amalgamated these debts from trying to sustain a family the past 17 years and never had worries like this but I guess in 6 years or so it'll all be over.

fatbelly

I can't see any point in prioritising Argos.

AH_

Ok I've cancelled the direct debts. I will need to open a new bank acc and start paying my salary into this and arrange for my priority payments Mortgage bills etc 

Alot of what im reading says when I open they can switch all my DD over to them.. should I do this as ive cancelled the ones I wouldn't want paying? Or say no and manually change them all. 

RAS

No, @Scarlet_to_Black did that and has spent last few weeks sorting out the mess. 

A new basic bank account, no credit check. Monzo if you're rushed. Contact payroll urgently so your salary goes in, then set essential DDs manually. If necessary pay next month on-line.

AH_

All my bills are going to come out tomorrow/Monday but it's ok at the moment as none of the creditors or my bank know it's an issue?

So ive cancelled the loans and credit cards DD I will want to default 

I won't pay next and argos balances when due 

Open a new basic bank acc

Tell employer new bank acc

Start switching all the payments I need to gas elec water or to the new acc

Eventually the Natwest current acc redundant

That's it right?

RAS

You really needed that new bank account in place before now. As explained Monzo takes minutes to do online.

And you must talk to payroll first thing in the morning. When is the deadline for getting your salary paid into the new account? It could be today. 

And do not talk to anyone about "switching." That has a quite specific meaning in banking that means your creditors can resurrect all your cancelled DDs. 

You have to set up you essential DDs from scratch. So you need the account numbers, references and dates. It's a fadff but less so than managing resurrected DDs.

AH_

I do have the new bank acc set up from yesterday but I already been paid 25th Feb...

My bills are starting to come out I cant do anything about this month 

I will have to let it all happen as normal now and then it'll all be set up for end of March from new acc

I won't use any switch option just work methodically one by one updating each account with new DD details and once confirmed cancel the exiting ones?

RAS

Good so far. Your priority is to speak to HR/payroll today and update them so your salary goes into the new account. 

AH_

Ok i shall do this today i think I can do it myself when logged into the portal off the work wifi

And then the next weeks or so just wait for defaults to come and save as much as I can? 

I hate that this is happening but I just won't have any money to live if I don't do it