This article provides a guide to the living expenses amounts that you are allowed in a debt management plan.

Included in this article:

• Living expenses amounts for a DMP
• Do you have to stick to the recommended amounts?
• What if your creditors disagree with your budget?

Want more advice about starting a debt management plan? Call us (0800 077 6180) or complete the form below. It’s free and confidential

Living expenses amounts for a DMP

Some of the figures you need to include in your debt management plan (DMP) living expenses budget are fixed. For example the amounts you pay for your rent or mortgage, utilities and council tax.

Other expenses amounts vary from person to person or family to family.

The list below identifies the main variable expenses you should include in your budget with guidelines to the amounts that creditors usually find acceptable.

Food Shopping  (Inc cleaning) – Maximum

Single Person: £220
Couple: £350
Each additional Child: £90
Pet food: Variable depending on animal(s)

Meals at Work – Maximum

Single Person: £40
Couple: £80 (reduce accordingly if part time)

Sports, Hobbies & Entertainment – Maximum

Single Person: £35
Couple: £45
Each additional Child: £15

Clothing – Maximum

Single Person: £30
Couple: £50
Each additional Child: £20
Additional school uniform per child: £17

Dental & Opticians Checks – Maximum

Single Person: £20
Couple: £30
Each additional Child: £0 (Free on NHS)

Note: Additional medicines and prescriptions can be added on top of these amounts

Hairdressing – Maximum

Single Person: £15
Couple: £25
Each additional Child: £5

Child Specific Expenses – Maximum

School Trips: £10/child
Pocket Money: £10/child
School Lunches: £40/child

TV & Internet – Maximum

TV License Fee: £14
Household: £80

Mobile Phone – Maximum

Single Person: £35
Couple: £70
Each additional Child: £10

Vehicle fuel and maintenance – Maximum

Car fuel (per vehicle): £195
Car maintenance & MOT (per vehicle): £35

Emergencies – Maximum

Single Person: £20
Couple: £40
Each additional Child: £10

Other Expenditures – Maximum

Dry Cleaning: £10/person
Newspapers: £10/person

Struggling to get your head round all of this? We can help. Call us (0800 077 6180) or complete the form below. The advice is free and confidential.

Do you have to stick to the recommended expenses amounts?

After reviewing the debt management plan expenses amounts listed above, you may feel you need to use higher figures. Where this is the case you should do so. However, be prepared to justify the increases.

Perhaps you have particular dietary requirements which cost more. Alternatively, you may have further than average to travel. Maybe you are looking after a relative or work a long way from home and so spend more than avergae on fuel.

Your creditors should be sympathetic to these expenditure needs.

Remember, your creditors need to be convinced that you doing your best to pay as much as you can towards your debts each month. Where they believe this is the case, they are likely to agree your proposed repayment plan.

The minimum payment for a DMP is normally £100/mth. You need to try to ensure that at least this amount is left available after all your living expenses are listed.

What if your creditors disagree with your budget?

It would be unusual for your debt management plan proposal to be rejected unless your living expenses amounts are particularly unreasonable.

Ultimately, your creditors aren’t agreeing to write off any debt for you as part of the plan. So whether you show you can pay £100 or £200/mth should not make a huge amount of difference to them.

That said, they don’t have to agree. If the figures you have used are questioned and can’t be reasonably justified, you could be asked to increase your payment offer.

You don’t have to do this. But if you refuse, it is less likely that they will freeze their interest charges and may still take enforcement action against you.

Need more advice about DMP living expenses amounts? Call us (0800 077 6180) or complete the form below. It’s free and confidential.