Can I Include the Cost of Children Who Have Left Education But Are Still Living With Me?
During the debt management plan application process you will need to give details about your monthly household living expenditure budget. We consider what allowances you can add for children who are no longer in education but continue to live with you.
If you are planning to start a debt management plan (DMP), you will need to complete an income and expenditure statement.
This document includes all the details about the money you have coming in and the cost of your reasonable monthly living expenses.
It is important that you get the figures in these areas correct. They will form the basis of the monthly payment that will be required to make each month towards your debts.
If you underestimate your expenditure, your monthly payment will be set at too high a level and you will struggle to pay it and be forced to miss payments or worse still borrow more to supplement your income.
Budget for dependent children
In terms of your housekeeping expenditure, you need to include the cost of maintaining any dependent children you have.
Generally it is acceptable to include a housekeeping budget of up to c£200 for a single parent c£320 for a couple. Then you should include up to an additional c£80 per dependent child.
This budget should be acceptable for all children up until school leaving age or who are in further education and still dependent on you.
If your children have already left education but they are still living with you, then more thought needs to be put into any living expenditure allowance you include for them.
Children no longer in education
If are you truly paying for any living expenses e.g. food of children who are no longer in education but still living with you, then it may well be reasonable to include a budget for this.
However you also need to consider whether they are contributing to the cost of their upkeep, such as paying you rent.
If they are, then your creditors should not have a problem with you including a budget towards their housekeeping as the amount that they are paying you should help to offset this additional expenditure.
However, if they are not contributing anything, you must expect that any expenditure you include will be more closely scrutinised.
Of course, there may be a perfectly legitimate reason for grown up children to remain dependent on you without making a contribution to the household income. You should make these reasons clear on your expenditure documents.
Non dependents
If you are still paying for non dependent children, the effect of this is that it reduces the disposable income that would otherwise be available to pay towards your debt.
For this reason, if your creditors believe that your children should be contributing something even if this is from benefits but they are not, there may be more reluctance to allow you to include a living expenditure allowance for them.
Ultimately, if you have children of any age living with you who are in any way dependent on you, you need to make sure that you include an element in your living expenses to cover the associated cost of this.
However, if the child is no longer in education, you must be prepared to justify this expenditure.
If you are struggling with debt, visit www.beatmydebt.com
Questions and Answers
Article Tags:
debt management
,personal debt solutions
,business debt solutions
,debt management plans
,iva debt help uk
If you have debts in the UK but have now moved to a different country either for work or because you have returned home, we consider whether you can still resolve your debt problem using an individual voluntary arrangement.
Debt management plans are one of the most popular solutions for managing personal debts. We investigate how much you will need to pay each month if you want to start a DMP.
If you are trying to resolve a debt problem, choosing whether to use a debt management plan or individual voluntary arrangement can be difficult. We consider which solution is the most suitable for you.
If you find yourself knee-deep in debt, you would naturally be looking at alternative solutions to ease out of the financial situation that you're in. Fortunately, there are personal and government debt management solutions that you can consider using. You just need to lay out all your options on the table and decide which one will work best, considering the circumstances.
Long tem debt problems are problems that have been building up for a long time and finally come to a head. They need to be dealt with, and here I give a review of the various options available to you.
If you are in debt and it has become unmanageable, it can be a nightmare. This article sets out what your options are to break out of the vicious debt cycle.
Debt settlement firms and agencies in New York have made it easier for New York debt negotiation to be easier for those who are in debts.
Debt firms that handle settlement of debt lawsuits are one of the most beautiful settlements of debt lawsuits that can be seem in the debt settlement mortgage market.
In the beginning Debt settlement IIc firms that take care of loans started with products that were fascinating until the impressive Debt settlement firms that take care of loans debt settlement firms came to limelight.
Most people in UK nowadays live with credit cards and loans. Majority of the population would use these plastic cards to pay for items they purchase in big shopping malls and supermarkets.
Debt comes natural nowadays due to economic downturn and budget crunch. People who experienced unexpected circumstances would certainly apply for unsecured loans without even thinking about interest and additional charges.
The Business minister Edward Davey MP has announced proposals – called Reform of the Process to Apply for Bankruptcy - which aim to save time and money when it comes to "simpler" bankruptcy cases.
There are many different debt management companies. We suggest the things you should consider when choosing which one to help you solve your debt problems.
With the possibility of wages being reduced and jobs being lost as a result of the government cuts, many thousands of people are at risk of no longer being able to afford their debt management plan payments. We consider what action can be taken.
The Government has released its latest official debt figures which show a surprising fall in the number of people who are struggling with debt problems.
Going bankrupt, also known as declaring yourself bankrupt is not something that you should decide to do unless you really understand the consequences and have considered the alternatives.
Discuss this Article
