DMP and Default Advice - £85,000 Debt and homeowner

Tommy147

https://forums.moneysavingexpert.com/discussion/comment/82175220#Comment_82175220

Thanks,

When you say aspirational soa, should I, or am I allowed, to put aside money each month to take my wife and son on holiday. I just don't know if that is allowed but a holiday abroad these days is going to cost c.£3,000 easily I guess. So that would mean saving £250pm. Just an example but all new to me so just want to get it right. Thanks again

Rob5342

DMPs are informal arrangements so you are free to do anything you feel like. If you don't make a concerted effort to tackle your debts though then it's going to take longer to clear them and you might find yourself slipping back into old habits. For the best chance of success you should really be cutting down as much as you can with a few bits of enjoyment to keep you going, I'd say that only a minimal holiday would fit into that really.

Tommy147

https://forums.moneysavingexpert.com/discussion/comment/82175736#Comment_82175736

Thanks, @Rob5342

My intention is absolutely to tackle the debt. I think what's knocked me is the advice to prepare an aspirational SOA. So what is fair, and what is not is the confusing point - as everyone sees it differently it seems. Naturally I would want my family to have a holiday but what is a fair sum for a holiday to put aside each month based on peoples' experience?

Without putting anything aside for holidays I would be able to put c.£1k towards debts based on my first SOA, so would it be a good idea to put that sum aside for say 3 months for emergency funds and to fix my car, while defaults occur, then after that look to start the DMP but would £750 be a fair sum towards debts in a DMP as it allows some funds being placed aside for a holiday or other things that can crop us thereafter (house repairs, decorating etc)

Sorry for the questions, I just want to get this right from the offset

Thanks

ArtyJ931

think of everything you might need to pay out for ever and how much you need to save monthly towards those costs and add those into your SOA. Eg:

• holidays
• Christmas and birthdays
• White goods replacement
• Car costs
• Annual insurance premiums
• House maintenance and repair costs
• Dentist / optician/ prescriptions/ therapies
• Haircuts
• New clothing and shoes
• Pet costs/ vets/ grooming/ replacement collars and leads etc
• Emergency fund to capture anything else

You will need to afford to live without using credit, so have to make sure you have money to cover irregular things that we know will crop up (eg above).

that’s the thing - alongside bills, groceries, monthly costs - you need to be furnishing all of the above pots (and whatever applies to you) before you can work out what you actually have spare for debt repayments each month.

Tommy147

https://forums.moneysavingexpert.com/discussion/comment/82175930#Comment_82175930

Thank you for this, it is appreciated