should i be paying more to creditors

carlos700

I am about to start a DMP with CCCS soon i have just worked out after everything has been paid but this is not including food or petrol i will have between £400 - £600 per month to spare ,i am only used to having £100 and thats to buy food so i am used to nothing spare .

I am pleased i am actually going to have spare money at the end of the month but i feel guilty for having it ,when i owe all those creditors all that money .Do you think i should be paying extra to my creditors .I have no idea how much everyone else lives off after they have paid all there bills as i say in the past mines always been zero.

Debt_Free_Chick

No - save your excess in a "rainy day" or "emergency" fund ... you never know what !!!!!! will come your way.

TakeittotheLimit.

It`s up to you!

If you want to pay more and lower your debt free date with you DMP then pay more,I`m in the same boat having money to spare for a bit but I am saving mine up for any emergencies like car trouble etc,and if I don`t use it then it will be used to offer Full and Final payments to my creditors.

compulsivespender79

CCCS will have worked out your budget, and if that's what they say you have "spare" then that's what you have!! After all my payments have been made, I will have about £500 a month "spare" (if, as you, I don't include shopping and petrol). Don't forget that when they do your budget CCCS spread all possible costs over 12 months, so in reality, some months you will have more cash than others (if your car tax comes up, etc you will have less). The idea is to budget quite strictly with yourself, so put aside £10 per month for tax, £20 a month for servicing, £20 a month for clothes. If you do that you'll see that you don't end up with much disposable income. Easier said than done, I know!! I haven't got a clue how I'll manage it!!!
Hope that helps.

ps. Just read back through that post and realised I sound like a scolding parent. Sorry, I didn't mean to come across as patronising

WhoopieDoodle

Yes, doing a budget is extremely important. Take into account everything (as stated above, car servicing, mots, etc and an emergency fund which is crucial as you will no longer be able to finance any repairs etc with credit cards)

Once you have done this, you will find that your "spare" has reduced somewhat but the comfort is knowing that money is going away into different pots so to speak and you are covered for any unforeseen emergencies.

Our money has been taken down to the bone, covering Christmas, birthdays, and even a very small leisure fund, so we can hire a dvd occasionally.

Good luck.

msmicawber

I had a similar experience when I went to the CAB for help years ago. I was so used to living on a shoestring, struggling to pay everything and keep up with enormous debt repayments and the CAB raised my budget for food, clothes, etc. because they thought it was too small although I'd been living on it for months. I would second Debt Free Chick's advice. If you find after a few months that you've built up savings, then I'm sure there's nothing to stop you paying off part of your debt. If not, then you know that CCCS were correct.

carlos700

Thanks very much everyone again thinking about it by the time as you said i have put away money for road tax, MOT or any other emergiencies i will not have has much as i thought but at least i will know the credit card does not have to be used any more .

CCCS_Alan

Hi Carlos700

Once your DMP starts you will have yearly reviews to check your situation and make sure the DMP is still your best option. The review will look at your income and expenditure so if a greater surplus is available at that time your payments could be increased to clear your debts quicker.
You can also ask for a review at any time if you identify areas in your budget that could be amended.
Just make sure your extra surplus is not in areas that you need to be putting aside for as they may not be monthly expenditure but still an essential living cost.

Good luck

CCCS_Alan

rayday2

I would put any extra you have into an ISA, I am on a DMP too and when my tumble dryer broke it was nice to know there was a lump sum put away and I could sort myself out. Also last year my MIL ended up in Intensive care after a routine operation nothing I would ever have dreampt of but we ended up spending over £300 on travel, hotels and food this had to come out the childrens savings and has been slowly paid back and what spurred me on to open an ISA for the emergencies you don't budget for!

Reformed_Shopaholic_2

CCCS_Alan wrote: »

Hi Carlos700

Once your DMP starts you will have yearly reviews to check your situation and make sure the DMP is still your best option. The review will look at your income and expenditure so if a greater surplus is available at that time your payments could be increased to clear your debts quicker.
You can also ask for a review at any time if you identify areas in your budget that could be amended.
Just make sure your extra surplus is not in areas that you need to be putting aside for as they may not be monthly expenditure but still an essential living cost.

Good luck

CCCS_Alan

Hi Alan

aplogies in advance if this has been asked and answered before - i'm waiting for my DMP paperwork to come in the post and have been reading all the threads from those already on a DMP who are managing to put money aside in an ISA or saving account for "emergencies" or to save up for the unexpected with the intention to try and build up savings to throw at their debt.

I'm a little confused and wondering if I'll be expected to get a receipt for all food/travel from now on? Sorry if that's a stupid question - it's just that if I take out money from my bank account to buy a food shop and then find I only need to spend half the amount do I have to show what happened to the other half to CCCS?? I have to say at this point a big big thankyou to CCCS and this site for giving me the information and link in the first place and to all the people who have been so helpful since my first (woeful) attempt at posting an SOA earlier this week.

It's just that I'm now hoping to budget and put money away to try and clear my debt mountain in the future but very confused on the proving of expenditure side.

Hope you can give me some advice Alan or perhaps Rayday, Debt free chick?

loopylu36

Hi Carlos

I think it just takes a bit of getting used to - having money that is! I'm in the same boat and literally had about £30 a month after all bills had been paid (not including food, petrol, or ANYTHING else!)

I have relied solely on the CCCS budget and have just used the figures that they have given me. This does seem quite "generous" for a normal month at first glance, but as others have said, the figure does include all those things you might only pay for once a year (car tax, MOT, servcing, house insurance, pet ins etc) but if you deduct these things as a montly expense,, the "left over" does start to come down!

I also echo what the others say about saving waht you don't need/don't spend. It can then be used for emergencies or to offer full and final settlements.

Don;'t beat yourself up - you have to live!


Reformed Shopoholic - you won't be asked to provide receipts to CCCS, so if your food budget is £35 and you only spend £25 (that's for one person - my CCCS budget for two adults one 15 year old who eats like a horse, two cats and one dog is £315 per month) it's up to you what you do with the other £10 - as above really.