DMP Help

Redfoo1900

Hi I am thinking of starting a DMP and am in the process of doing my SOA but have a question first. My unsecured debts are currently around 9K and I have a car on PCP finance in my name, however my wife pays the monthly payments. Would having a DMP affect the PCP agreement as the payments are up to date and my wife is willing to keep making the payments as we need it.

fatbelly

All the finance provider cares about is receiving payment. Doesn't matter from where or who.

Let's see that SOA

Redfoo1900

Hi, here is my SOA. Bit of background, I had/have a gambling problem and have got myself into a mess using credit card/loans to get myself out of trouble in the past when I have lost on gambling. For example, I lost £700 a couple of months back that I had saved for something I needed to pay and ended up having to take out a loan with lendable which made things even worse. I am getting help now and just want to get out of this mess.

[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.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 2100

Partners monthly income after tax....... 1100

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

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

Total monthly income.................... 3370[/b][b]

Monthly Expense Details[/b]

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

Secured/HP loan repayments.............. 166

Rent.................................... 750

Management charge (leasehold property).. 0

Council tax............................. 140

Electricity............................. 130

Gas..................................... 120

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

Water rates............................. 65

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

Mobile phone............................ 80

TV Licence.............................. 15

Satellite/Cable TV...................... 10

Internet Services....................... 25

Groceries etc. ......................... 600

Clothing................................ 120

Petrol/diesel........................... 40

Road tax................................ 18

Car Insurance........................... 50

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

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

Other travel............................ 380

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

Other child related expenses............ 150

Medical (prescriptions, dentist etc).... 35

Pet insurance/vet bills................. 50

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

Contents insurance...................... 20

Life assurance ......................... 50

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

Presents (birthday, christmas etc)...... 30

Haircuts................................ 20

Entertainment........................... 30

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

Emergency fund.......................... 50

Professional Fees....................... 30

Pension................................. 50[b]

Total monthly expenses.................. 3274[/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 ...... 12000....(166)......0[b]

Total secured & HP debts...... 12000.....-.........-   [/b]

[b]Unsecured Debts[/b]

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

Monzo Loan.....................1640......40........0

Lendable.......................1087......35........0

John Lewis.....................515.......25........0

Paypal.........................185.......15........0

Capital One....................2091......60........0

Tesco Bank.....................1562......25........0

Vanquis........................1858......50........0[b]

Total unsecured debts..........8938......250.......-  [/b]

[b]

Monthly Budget Summary[/b]

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

Expenses (including HP & secured debts). 3,274

Available for debt repayments........... 96

Monthly UNsecured debt repayments....... 250[b]

Amount short for making debt repayments. -154[/b]

[b]Personal Balance Sheet Summary[/b]

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

Total HP & Secured debt................. -12,000

Total Unsecured debt.................... -8,938[b]

Net Assets.............................. -20,938[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

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

fatbelly

I 'm not going to pick holes in your soa. There is some money available but not much, so a dmp is probably the way forward

There is a thread about starting one, that I will link to in a minute

https://forums.moneysavingexpert.com/discussion/6496941/in-debt-and-wannabe-debt-free-first-steps-to-take -are-here-please-read-then-ask-questions

Redfoo1900

I have been on stepchange and they are suggesting £100 per month for the next 7 years which is fine with me, however I want to do this myself and was wondering how the best way to start/follow steps to get going really. Best way to deal with creditors, how do i split the £100 between them all etc. Sorry for all the questions and thanks for your help fatbelly

Grumpelstiltskin

OK so you want to do it yourself.

First thing is to stop payments to all unsecured debts. you need to let them default, use the money you would have paid to the debts to save an emergency fund.

When it comes to paying you workout what % of the total debt that particular debt is, so if it is 10%, so you pay it 10% of the total amount you have for debt repayment.

That is way down the line at the moment, defaults will take some time. Whatever you  do don't be tempted to speak to any of them on the phone, block their numbers but always look at any letters you get through snail mail.

Debt collection can be very slow at times, just don't rush into anything until you are sure you know it is the  right thing to do.

Mean time set up a basic bank account with a banking group you don't owe money to and manually transfer all vital direct debits don't use the banking switch service.

Make sure you don't use any more credit from today.

Redfoo1900

Can I ask, do the debt companies ask for proof of earnings, do I need to send them bank statements etc. Sorry for all the questions but just very nervous about the whole process

Grumpelstiltskin

Redfoo1900 said:

Can I ask, do the debt companies ask for proof of earnings, do I need to send them bank statements etc. Sorry for all the questions but just very nervous about the whole process

Yes they can ask but you can refuse to supply them.

Remember two things, a DMP is an informal arrangement and you are in control, you decide what and when you can afford to pay not the DMP provider

RAS

It is useful if you stop paying until the debt defaults. That limits the length of time your credit record is damaged. You will get notice of the arrangements to pay from the creditor. Most just provide your unique code and details of the account into which you pay.

Do you have any joint accounts with your partner? If so, get them closed.

And if possible put at least some the money you save for your emergency fund into an account where you have to give notice before you can spend it. 

Is your partner on board?

ManyWays

So it's up to you whether to go self-managed or with StepChange.

Your SoA looks fairly sensible, as a recovering gambler you do not want to try to live on too tight a budget. But it's also important to live with as little financial stress as possible, and you may find it difficult first to live through the communications and uncertainties in the first 6-12 months of a DMP and later be able to save up a small war chest to make settlement offers from. If there is any remote chance you will just gamble the accumulating money, then you should seriously consider going with StepChange now and taking the easy way through this. 

Rob5342

ManyWays said:

If there is any remote chance you will just gamble the accumulating money, then you should seriously consider going with StepChange now and taking the easy way through this. 

That's a good point. I normally advocate managing DMPs yourself as it's more flexible, but on the other hand if you get something set up with Stepchange that might help you stick to things. Whichever route you take make sure the debts default first.