DMP advice

Evie0207 · 8 April 2018 at 4:44PM

I'm wondering if anyone can give me some advice.

I started a dmp in January this year for 2 credit cards, Natwest loan, Natwest overdraft and 2 store cards all totalling 15k.

I pay £132 for the next 9 years (soul destroying) but even paying so little a month, I'm still struggling tremendously. After all bills have come out, we have £150 to live off a month!

I'm so stressed and depressed over it. Just want my debts gone !!!128532;

Is there anything I can do in these circumstances? Or deal with being broke for life, not being able to treat my 2 year old daughter ever or be able to afford another child.

sourcrates · 8 April 2018 at 4:54PM

Hi Evie,

What is your home situation like, do you rent or have you got a mortgage ?

Evie0207 · 8 April 2018 at 4:56PM

We private rent !!!128522;

sourcrates · 8 April 2018 at 5:22PM

That`s good then, you do have other options.

You say you have £150 left after you pay all your bills, you obviously are unable to live off that figure, so that suggests to me your budget was incorrect from the start.

Have you considered a debt relief order ?

You would need to shave another £100 off your budget, but i dont see that been a problem if your struggling, do you have any assets worth over £1000 ?

A car worth over £1000 ?

If the answer is no, you may well qualify.

Evie0207 · 8 April 2018 at 5:28PM

Oh that's interesting. I was very worried about my credit rating being affected but I suppose it's too late now, so whatever I do it will be affected the same?

I have my car on HP for the next 5 years, where does that put me do you know?

Thank you for your reply

sourcrates · 8 April 2018 at 5:33PM

So it will be worth more than £1000 then, which unfortunately would mean you would not qualify for a DRO.

sourcrates · 8 April 2018 at 5:44PM

Realistically, forget your credit file when your in debt, these are your possible options :

(1) As your debts are what we term "non priority" you could reduce payments to £1 per month each, or even stop paying altogether, for a while, try and save up an emergency fund to cover life's little dramas, or days out.

Can you increase your income at all ?

(2) Would Bankruptcy be an option ?

Extreme maybe given the small amount of debt you have, but if a fresh start is what you want.........the car would most likely have to go using this scenario though.

(3) You do not have enough disposable income for an IVA, and you don't qualify for a DRO.

Personally i would go with option (1).

Fireflyaway · 8 April 2018 at 5:59PM

If it's a debt management plan rather than a legally binding iva, you can alter your budget whether you are following this through a management agency of organising it yourself. I'm with pay plan and have changed my budget several times. If you feel trapped and demotivated you are more likely to give up and you need some extra money to live and for unexpected things, so don't work on accounting for every penny.
Write down a revised budget and make a new offer. What I did was exaggerate. Not ideal but I wanted some quality of life. If your food budget is really £200 then tell them its £300. If your electric is £80 say it's £120 etc.
Most of all remember this will come to an end at some point. Once the debt balance is down considerably you could always offer a partial settlement to get rid sooner.

DMP advice

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