Payments while setting up dmp

yoyo33 · 19 October 2018 at 9:46AM

Hi all. I've been reading through all the post on here for a while now and there's some brilliant advice. And you're a really helpful bunch.
Just wondered if someone could give me some advice.
To cut a long story short. I've had to leave my job due to childcare and now self employed so I can juggle childcare easily. But my income will be much lower for a while. My husband earns a half decent wage. But we're in alot of debt. Around 60k. Didn't realise it was that much until recently. I've been in contact with stepchange who have referred me to business debtline
And im going to set up a debt management plan but they need me to have 3 months self employed to see how much I'll be earning before anything is set up. We've never missed any payments up till now.
I started calling creditors yesterday and only had time to call 2.
Barclaycard were really good. And put my account on hold. I said I would send a payment by the due date but not sure how much I can afford yet. They were fine.
Then I called nram who we have a unsecured loan with. They were also nice but wants me to ring back in 10 days with budget plan to make a payment.
The thing worried about is. I really want to set up a bit of an emergency fund just before we start just incase.

So my question is. Can I just offer a small amount for now or will they need to see pay slips from my husband etc. He will.get a bit extra in his wages this month but I really want to keep some by. Especially with Xmas round the corner.
Don't get me wrong I want nothing more than to get started to clear our debt. Butwe need some money to put aside. For emergencies and im going to have to spend a couple of hundred on my business. But I'm worried that if nram expect me to pay alot then will the other creditors find out and get funny about not sharing the money equally. I'm really worried this will mess the whole thing up.
Thanks in advance for any advise.

sourcrates · 19 October 2018 at 11:24AM

Hi yoyo33,

What you have to understand is that all unsecured credit debts are defined as "non priority" by debt advice agencies, and also the creditors themselves, that means they are last on the list for payment.

When you prepare your budget, your "essential payments" come first, so that would be your mortgage/rent/council tax/food/utilities etc.

Whats left, if anything, is your disposable income for debt repayments, if there is nothing, they get nothing, if all you can afford is £1 a month to each creditor, then so be it, whatever you choose to do, you back up with a copy of your budget.

Creditors know this, and have been told by the regulator to to take affordability into account when dealing with customers in financial difficulties.

You decide who gets what, when, and how much, not them.

Willing2Learn · 19 October 2018 at 11:39AM

Hi,

Just wanted to add. NRAM would not be calling you in 10 days time to talk about your budget. It is always a good idea to do everything, in writing, via the postal service. It stops any chance of you feeling pressured or panicked during a 'phone call.

I always suggest that people write to their creditors, advising them that the only form of communication that is consented, is written by post, adding that all other forms of communication do not have your consent.

Hope you find this helpful

yoyo33 · 19 October 2018 at 9:39PM

Thankyou both for your advice.
And I think I might send them a letter as they did put me on the spot.
Thankyou x

Payments while setting up dmp

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