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DMP Mutual Support Thread - Part 7

edited 30 November -1 at 1:00AM in Debt-Free Wannabe
5K replies 376.5K views
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  • I'm not good with spreadsheets.
    I've been keeping a spending diary and making notes of any NSD, for instance, but I'm not sure how to budget at all - any tips?

    My only suggestion is to set yourself a limit per spend category - i.e. Groceries and then as you spend knock it off the balance. That way you will always know what you've got left. It's very good for making you think about spending money before you actually part with the cash if you know what I mean.
    SPC5 #1457 Long hauler #293
    LBM 12/11
    Debtbusting -DMP 01/12 - £48832.04/£48806.91 :eek::eek::eek:
    £[STRIKE]400[/STRIKE] to friends and family :beer: [STRIKE]£250[/STRIKE] Payday loan :T
    [STRIKE]£250 [/STRIKE]O/D :j
    Fatbusting - 126lb/66.5lb :j over half way now! :j
  • AmyV_2AmyV_2 Forumite
    93 posts
    Hi all the newbies! I've not been on here for ages until yesterday when I had a question to ask.

    I just wanted to give you some perspective from someone who has been through all this (still some years to go!) and to assure you it does get better.

    My husband eventually told me about the debt he had racked up towards the end of 2008. It was a huge shock (even huger amount!) but it was a relief to finally be able to get it sorted. I had known something wasn't quite right for ages but couldn't get to the bottom of it. Anyway, after asking about remortgaging on the MSE website sometime told me that was NOT the answer!! Instead they very kindly told me about Debt Management Plans.

    This may or may not be the right thing for you, but my advice (as a bit of an old timer at this ;) is if you are still at the stage of wondering what to do for the best, to contact CCCS or PayPlan (both charities so will not charge a penny) and talk it through.

    I phoned the CCCS myself initially, although the debt was all in my husband's name, not mine, and they were fabulous and let me blub on the phone for ages. (yes unexpected buckets of tears started) and it was then I realised that NOTHING is too difficult to solve.

    I explained to my husband what the process was and he plucked up the courage to phone them. They are not judgmental, they are there to help.

    It took a little while to set up the DMP, in the meantime we got a new bank account, and sent token £1 payments to each creditor and the relief was enormous.

    In the early months it felt pretty scarey with some sending threatening letters and telling us all sorts of rubbish, but we stood our ground got advice from the CCCS at each stage and came through the worst.

    Probably the worst for us was when one creditor jumped straight in and got a CCJ. We thought it was completely unnecessary as he was at that point on the DMP. At first we were terrified, but to be honest, it was not an issue and it meant they could no longer pile on interest, and now when he increases payments each year, they don't get a penny more... so their loss.

    We still get the odd letter, and we get the credit card companies trying to increase interest periodically (currently fighting one at the moment), but we got through it, and with hindsight we shouldn't have been so worried. My hubby still has another 4 or so years to go, but I think we are better off now than we have ever been because he is paying an amount that doesn't leave him broke every month and we can actually live a normal life.

    Sorry this has been so long, just wanted to give some hope, as people did for me 3 years ago.

    I am happy to answer any questions if I can as I know people have loads at the beginning :-)

    A xxxxxx
  • ailz95ailz95 Forumite
    364 posts
    Part of the Furniture 100 Posts Photogenic Debt-free and Proud!
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    Em586 wrote: »
    not sure if anyone here can help but thought I'd try... my son has just been awarded DLA. I haven't had a letter yet, but a lovely surprise lump sum when I checked online banking tonight, so I presume that's the 8wks of back pay from when we applied.

    I asked yesterday when I spoke to CCCS how it works, as the money is meant to be for my son. He said we declare it as income, but then add the amount into our expenditure accordingly. Does anyone have experience of this? I just worry that if our 'sports/clubs/activities' budget goes up by a fair bit as we put down money for swimming lessons, extra soft play, etc. (he has cerebral palsy- so those are things that will help his muscles by being active!) and our clothes/shoes budget goes up another large amount (for special shoes) that our creditors won't be impressed with our level of spending in those areas! We also won't always need the full amount each month, but will need to put some into savings (his) for when we need big spends like new buggy, car seats, extra pairs of shoes........ do we just add this to the 'emergency fund' bit or somewhere where we have no spends, say 'medical/accident insurance'?

    I would add another category and put it in as what it is - extra spending due to your child's disability. It is a non means tested benefit and isn't counted as part of your normal income. I have a dmp with Payplan and they told me that they can get in trouble - as can your creditors if they show DLA as being used for part of the payment of a dmp.
    YOU CANNOT BE ALL THE GOOD THAT THE WORLD NEEDS, BUT THE WORLD NEEDS ALL THE GOOD YOU CAN BE
    Clutter free wannabee 41/52 bags to cs. 1304/2020 'stuff' out of the place
  • fermifermi Forumite
    40.6K posts
    Intrepid Forum Explorer Rampant Recycler Newshound! Car Insurance Carver!
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    Once again, the thread has approached the 5,000 post limit, so a new one has been started.

    Please continue on the....

    DMP Mutual Support Thread - Part 8

    Good luck everyone. Fantastic to see so many posting and supporting each other. :)
    I'm a Board Guide on the Debt-Free Wannabe, Bankruptcy, Credit Cards and Loans boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Board guides are not moderators. If you spot an inappropriate or illegal post then please report it to [email protected]

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