Student Maintenance loan and DMP

Lettingissues77

Hi.

When preparing an SOA for creditors. (When at the point of setting up payment plans.)

Would you include student maintenance loans? I get £450 a month, but it does not feel like it as it is paid in three instalments a year. I have read previously someone mention they would not include income that does not go through PAYE. I don’t want to be dishonest, but at the same time as it is mainly loan (small part grant) I will be paying the money back, so unsure if I should be including it. 

Thanks for any advice 

fatbelly

Can you produce a soa that looks logical and gives creditors sensible amounts without including it?

If so, I would leave it out and aim to save 5k per year in a separate pot to use for settlement deals or emergencies

ManyWays

That is a lot of money to leave out, could you post a Statement of Affairs here https://www.stoozing.com/soa.php as it may be simpler to adjust some of the amounts in that

Lettingissues77

I will post my SOA, I have been working on it, but for some reason it hasn’t saved. So not all the interests rates may be exact. But it’s approximately them. My husband has been unemployed for 9 months and we also had nursery fees of £200, he has just got a part time job after months of applying. It will be take home approx £850, but as it’s not a joint DMP (based on advice from here as his debts are manageable) I’ve not included this but with half the rent, his debts and other things he pays like petrol, car insurance, tax etc. it adds up to the £850.

We have 4 children, two teenagers, two primary age. Teenagers are sporty so eat very well. 

[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......... 4

Number of cars owned.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 2280

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

Benefits................................ 305

Other income............................ 450[b]

Total monthly income.................... 3035[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 0

Secured/HP loan repayments.............. 280

Rent.................................... 275

Management charge (leasehold property).. 0

Council tax............................. 120

Electricity............................. 148.36

Gas..................................... 0

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

Water rates............................. 54

Telephone (land line)................... 28

Mobile phone............................ 109

TV Licence.............................. 0

Satellite/Cable TV...................... 32

Internet Services....................... 0

Groceries etc. ......................... 750

Clothing................................ 80

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

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

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

Car maintenance (including MOT)......... 25

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

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

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

Other child related expenses............ 135

Medical (prescriptions, dentist etc).... 15

Pet insurance/vet bills................. 14

Buildings insurance..................... 0

Contents insurance...................... 13

Life assurance ......................... 29

Other insurance......................... 5

Presents (birthday, christmas etc)...... 100

Haircuts................................ 40

Entertainment........................... 50

Holiday................................. 50

Emergency fund.......................... 60

HMRC Debt .............................. 42

Professional Fees ...................... 18[b]

Total monthly expenses.................. 2492.36[/b]

[b]

Assets[/b]

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

House value (Gross)..................... 0

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

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

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

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

[b]

Secured & HP Debts[/b]

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

Mortgage...................... 0........(0)........0

Hire Purchase (HP) debt ...... 15000....(280)......10[b]

Total secured & HP debts...... 15000.....-.........-   [/b]

[b]Unsecured Debts[/b]

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

Tesco..........................3500......40........25

Amex ..........................4500......220.......25

RBS............................13000.....495.......10

Paypal.........................1400......25........19

Virgin ........................600.......25........24

Very...........................600.......15........49

MBNA...........................3900......50........24

Barclaycard ...................2200......25........24

Lloyds.........................2000......25........24

RBS............................1600......15........39

RBS ...........................1900......35........19[b]

Total unsecured debts..........35200.....970.......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 3,035

Expenses (including HP & secured debts). 2,492.36

Available for debt repayments........... 542.64

Monthly UNsecured debt repayments....... 970[b]

Amount short for making debt repayments. -427.36[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 0

Total HP & Secured debt................. -15,000

Total Unsecured debt.................... -35,200[b]

Net Assets.............................. -50,200[/b]

[i]Created using the SOA calculator at www.stoozing.com. 

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

Lettingissues77

I do think £500 a month on debt would be affordable. But are creditors likely to push back on such high expenses? 

sourcrates

Lettingissues77 said:

I do think £500 a month on debt would be affordable. But are creditors likely to push back on such high expenses? 

Its non of their business what else you spend money on, only in insolvency can they exert influence on what you pay them, no where else, you are in charge, not them.

Lettingissues77

@sourcrates I have seen you say many times that a change of thinking is needed. 

I think I am struggling with whether my aim should be to agree payments which would mean I pay back what I owe in a reasonable amount of time. Or am I going to be trying to partially settle accounts. 

sourcrates

Lettingissues77 said:

@sourcrates I have seen you say many times that a change of thinking is needed. 

I think I am struggling with whether my aim should be to agree payments which would mean I pay back what I owe in a reasonable amount of time. Or am I going to be trying to partially settle accounts. 

Ideally the best route is a mix of both strategies, make an offer you can easily afford, which allows you to save something on the side, settlement offers will likely become available at some point, and most DMP`s end up with a settlement or offer of some kind.