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    • rattlesnake2018
    • By rattlesnake2018 10th Feb 18, 12:10 PM
    • 10Posts
    • 0Thanks
    DMP - help needed
    • #1
    • 10th Feb 18, 12:10 PM
    DMP - help needed 10th Feb 18 at 12:10 PM
    I've come to the realisation I need to sort out my debts as I cannot afford my monthly repayments. To cut a long story short, I have debts of 34,300 over 7 credit cards and 2 bank overdrafts.

    I have completed an expenditure sheet, set up a new basic bank account at Santander (cannot believe you can open an account online!) and aim to run my own DMP. I have prepared letters to send to my 9 creditors and have arranged for my wage of 1202 to go to my new Santander account (although this months wage will go into my current account at Natwest where I have an overdraft). I aim to transfer this to Santander as soon as it hits my account on payday (28 Feb).

    So questions...

    1. I have worked out I can realistically afford to pay my 9 creditors a sum of 225 p/m on a pro-rata basis. This will increase in 6 months as I will get an additional 150 following a bump of income at work. Shall I include this expected bump in the letter to the creditors as an incentive to accept my offer?

    2. I have 644 in my account to last me until 28 Feb. I need to pay 4 of my creditors the minimum monthly charge which comes to 420 which is impossible. Shall I still make a nominal payment of 10 to each creditor this month or make no payment at all?

    3. I intend to start paying my creditors the pro-rata figure I have worked out on 1 March via direct debit and intend to send out my letters on 28 February. Is this the right way to go about things?

    4. As I have two bank overdrafts can the banks ask for their money up front? The overdrafts total 3600. If they do, what are my options?

    5. When working out my expenditure sheet I have worked out I have 249 disposable income. I intend to offer 225 p/m - is this right or do I have to offer 249 p/m towards the DMP?

    I would appreciate any help as I now begin my long journey to freedom!
Page 2
    • January2015
    • By January2015 12th Feb 18, 10:13 PM
    • 2,054 Posts
    • 5,127 Thanks
    That's very helpful indeed.

    I like the 'pet' idea which could in effect help knock down my Sky/phone deal somewhat - and it wouldn't be a lie as we do have pet fish but I didn't think about putting that down on my expenditure sheet. The work meals could also be cut down to 0 I guess and I can knock the food down to a more realistic 350 as that was a pure guesstimate on my behalf.

    I'm still unsure about clothes though. How do you work out the cost over a month for clothes?
    Originally posted by rattlesnake2018
    I can't help with clothes budget. Our children are all grown, so it's just me and my other half. We budget 40 p/m for clothing. We tend to wait for sales and buy clothes and shoes then, but I appreciate it's going to be far more expensive with growing children.

    You haven't included any budget for life insurance. Do you have any - if not you should think about getting some.

    I might have missed it, but did you budget for Christmas and birthdays? With kids you have to have a budget category for this.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was 95k I'm driving it down
    1k emergency fund (member #84) 1k/1k
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