Self DMP - first steps

jurrasic359

I’m going to do a self DMP. I have been deliberating this for months but think it is finally time after having to continuously borrow to keep up with debts. I am currently not behind with any payments at present. 

I’m currently at about £36,000 in debt across numerous loans (1 x Plata, 4 x Zopa, 1 x Lendable), 3 credit cards (Lloyds, Capital One, Barclaycard, Fluid) and 3 store accounts (Next, Argos and Very). 

Payments are all due at the end of the month totalling around £1700 which I can no longer afford - is the first step just to simply cancel my direct debits on my loans and not pay credit cards like I normally would? 

I have a personal account and joint account with Lloyds where the mortgage, council tax, utility bills etc come out. The only debt tied to Lloyds is a credit card debt (no balance). Am I silly to keep this? I visit my dad in Spain a couple of times a year and always need the credit card to leave a refundable hold on the card as a deposit when I hire a car. My dad keeps this card for me so that I cannot spend on it.

I’ve read through lots of posts on here the last few months but are there any useful hints and tips that might help me? I’ve also been reading on the debt camel website which has been super helpful. I have already put in some irresponsible lending claims in to some providers too - I only did this last week so haven’t heard anything just yet! 

Brie

First thing to do is to ensure you have a bank account linked to any of your debts.  So not with Barclays obviously.  If you do need to open a new account ensure you do it manually, not using the switch service.  If Lloyds fits the bill then this is sorted.  

Can you post a statement of accounts so we get the full picture?  There's a link below in my signature.

Great idea to read the Debt Camel site - it's incredibly helpful.

jurrasic359

When doing a SOA do I include my partner or not? As this will be just my DMP. He does not have any debts apart from a CC he doesn’t use. 

ManyWays

Yoiu have two choices. Either you put down both your incomes and all of the expenses. Or you just put down your income and just your share of the expenses that are split. In which case it would help if you mark those expenses so we can see which they are.

jurrasic359

Wow! Checking the balances like that I was way out! Really had my head in the sand!!

I’d say this is my current state of spending (I’ve tried to cut back massively in November & December) clearly before that I was spending A LOT more on clothes (probably hundreds a months), eating out, treats, days out etc than the below. I currently don’t have any emergency savings so I figured £100 would be an okay amount to put here? Is this now much people normally save on a DMP? 

Do these amounts seem realistic? I can’t walk to work as it’s too far and I have to drop 2 children off at school on the way. We only have the one car and I have that on PCP.

Childcare costs are before and after school club each day (I am a teacher so drop off and pick up are impossible!). 

I’d like some advice on how much to offer each creditor once I have the defaults through? Realistically what percentage of the current monthly payment will they expect me to pay? 

Thank you so much for all the help! 

Household Information

Number of adults in household........... 2

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

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

Monthly Income Details

Monthly income after tax................ 2800

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

Benefits................................ 170 (child benefit)

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

Total monthly income.................... 2970

Monthly Expense Details - including just my share of shared bills (mortgage, council tax, gas, electric etc)

Mortgage................................ 350

Secured/HP loan repayments.............. 300

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

Management charge (leasehold property).. 0

Council tax............................. 75

Electricity............................. 30

Gas..................................... 40

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

Water rates............................. 20

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

Mobile phone............................ 30

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

Satellite/Cable TV...................... 20

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

Groceries etc. ......................... 400

Clothing................................ 50

Petrol/diesel........................... 160

Road tax................................ 15

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

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

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

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

Childcare/nursery....................... 200

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

Medical (prescriptions, dentist etc).... 30

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

Buildings insurance..................... 20

Contents insurance...................... 10

Life assurance ......................... 22

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

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

Haircuts................................ 30

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

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

Emergency fund.......................... 100

Total monthly expenses.................. 2192

Assets

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

House value (Gross)..................... 210000 (what our house is currently worth)

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

Car(s).................................. 10000 (not sure about this one as car is not mine unless I pay balloon payment)

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

Total Assets............................ 220000

Secured & HP Debts

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

Mortgage...................... 120000...(350)......0

Hire Purchase (HP) debt ...... 11000....(300)......0

Total secured & HP debts...... 131000....-.........- 

Unsecured Debts

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

Plata Loan.....................19000.....415.......24.7

Zopa Loan......................6745......338.......16.7

Zopa Loan......................2457......77........24.8

Argos..........................800.......55........0

Very ..........................1900......150.......0

Next...........................1400......75........0

Fluid CC.......................1953......35........0

Capital One CC ................6319......246.......22.4

Barclaycard CC.................4603......123.......23.4

Lendable Loan..................820.......38........24.6

Zopa Loan......................1542......42........35.6

Zopa Loan......................1128......41........29.3

Total unsecured debts..........48667.....1635......

Monthly Budget Summary

Total monthly income.................... 2,970

Expenses (including HP & secured debts). 2,192

Available for debt repayments........... 778

Monthly UNsecured debt repayments....... 1,635

Amount short for making debt repayments. -857

Personal Balance Sheet Summary

Total assets (things you own)........... 220,000

Total HP & Secured debt................. -131,000

Total Unsecured debt.................... -48,667

Net Assets.............................. 40,333

Grumpelstiltskin

Can I sort this out. You are showing only your income? The figures are for your share of total costs?

You both have similar salaries? Do you split things 50% - 50%?

jurrasic359

This is purely my income and child benefit which comes into my account.

I actually earn about £800ish a month more than my partner. Most stuff is 50/50 apart from the odd thing. 

All of the car costs are my own as he doesn’t drive - he does pay for petrol if we go on day trips etc and pays for a lot of our days out etc. 

ManyWays

So which costs have you "halved" roughly?

jurrasic359

Mortgage, gas, electric, council tax, water, satellite/cable (he does pay for the majority of this as he has Sky sports etc). He also saves each month for the kids Christmas and birthdays. 

NeverendingDMP

Just checking if you use tax free childcare or anything to reduce the cost

jurrasic359

Yes we do. We pay the 80%