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  • Knotintherope
    Knotintherope Posts: 19 Forumite
    10 Posts First Anniversary Name Dropper
    I have a Chase account but never really used it so its already open just need to get my employer to pay my wages into it.
    When waiting for the debt to 'default' there is obviously 7 different companies involved which I'm sure wont all default as a collective group... what is the scenario if 3 default ... what do you do about the other 4? Do you wait until all default? Or can you start paying as a percentage of what you have allocated to debt payment as in Company A is 15% of the overall debt and I have £500 allocated to debt so I offer them payments of £75.
    I know I've 3-6 months to find this out but just want to get it straight in my head
    Thank you again
  • Stateofart
    Stateofart Posts: 341 Forumite
    Fifth Anniversary 100 Posts
    Oil and Life insurance seem to be the kickers for me.  Also, heck of a mortgage for your income as well.
  • Knotintherope
    Knotintherope Posts: 19 Forumite
    10 Posts First Anniversary Name Dropper
    Stateofart said:
    Oil and Life insurance seem to be the kickers for me.  Also, heck of a mortgage for your income as well.
    Not Oil ... wood pellets over doubled in price the past couple of years, Life insurance needs reviewed (point taken) Again mortgage has doubled but not in a deal and with the debt I've got no option but to run with current lender until the rate hopefully drops 
  • kimwp
    kimwp Posts: 2,986 Forumite
    Fifth Anniversary 1,000 Posts Photogenic Name Dropper
    Knotintherope said:
    Thank you all for your comments … At present I have a Santander joint account which I and my wife pay £810 pounds into each… this covers all expenses (mortgage, insurance, rates, electricity etc). I am left with just under £1200  to service the debt, food and living expenses. Obviously and because I’ve depended on the CC’s the minimum payments have crept up to a stage where even paying the minimum puts me in a minus.
    I can look at the expenses over the coming weeks to try and reduce them but I also want to tackle my debt head on. 
    From reading several other threads would the next steps be 
    1. Cancel DD’s for personal loans
    2. Don’t make any payments to Credit cards
    3. Switch my bank account (Is Chase a good option)
    4. Await the loans & credit cards to default while facing a barrage of phone calls, emails & letters.
    5. Then contact whoever then controls the debt to offer a payment plan based on my SOA at that time
    Again thank you for your advice I will take it all on board but I can ensure you I’m determined to get on top of this
    Ok, so something isn't adding up at the moment with your SOA. You say you and your wife each put in £810 to cover mortgage, insurance etc, but those add up to more than £810 on your SOA, so are the values on your SOA the total payments or just your half?

    The SOA either needs to show your income and expenses or your household income expenses, currently it seems to be your income and the household expenses.
    Statement of Affairs (SOA) link: https://www.lemonfool.co.uk/financecalculators/soa.php

    For free, non-judgemental debt advice, try: Stepchange or National Debtline. Beware fee charging companies with similar names.
  • Knotintherope
    Knotintherope Posts: 19 Forumite
    10 Posts First Anniversary Name Dropper
    Statement of Affairs and Personal Balance Sheet

    Household Information[/b]
    Number of adults in household........... 2
    Number of children in household......... 0
    Number of cars owned.................... 1

    Monthly Income Details[/b]
    Monthly income after tax................ 2036
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 2036

    Monthly Expense Details[/b]
    Mortgage................................ 430
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 42
    Electricity............................. 45
    Gas..................................... 5
    Oil..................................... 90
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 0
    TV Licence.............................. 7
    Satellite/Cable TV...................... 65
    Internet Services....................... 0
    Groceries etc. ......................... 0
    Clothing................................ 0
    Petrol/diesel........................... 0
    Road tax................................ 7
    Car Insurance........................... 20
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 29
    Pet insurance/vet bills................. 35
    Buildings insurance..................... 21
    Contents insurance...................... 0
    Life assurance ......................... 19
    Other insurance......................... 12
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 9
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 836

    Assets
    Cash.................................... 0
    House value (Gross)..................... 180000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 180000


    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 87026....(430)......0
    Total secured & HP debts...... 87026.....-.........-   

    Unsecured Debts
    Description....................Debt......Monthly...APR
    Tesco CC.......................6962......171.......0
    PayPal Credit..................4192......150.......0
    Amex...........................2515......114.......0
    Novuna.........................2704......242.......0
    Novuna PL......................1511......91........0
    Novuna PL......................3126......100.......0
    Virgin CC......................3890......110.......0
    MBNA...........................4647......187.......0
    Vanquis........................861.......40........0[b]
    Total unsecured debts..........30408.....1205......-  [/b]


    Monthly Budget Summary
    Total monthly income.................... 2,036
    Expenses (including HP & secured debts). 836
    Available for debt repayments........... 1,200
    Monthly UNsecured debt repayments....... 1,205
    Amount short for making debt repayments. -5

    [b]Personal Balance Sheet Summary
    Total assets (things you own)........... 180,000
    Total HP & Secured debt................. -87,026
    Total Unsecured debt.................... -30,408
    Net Assets.............................. 62,566

    [Created using the SOA calculator at www.LemonFool.co.uk.
    Reproduced on Moneysavingexpert with permission, using other browser.

    A slightly more accurate version to give a better split on what expenses I split with my wife through our joint account.
    Although it doesn't make any better reading!!
    I haven't included presents or groceries as we try to get away with as little as possible!
    Now I realise and so can anyone reading this why my credit card debt has increased at such a rapid rate

    Again thank you for your comments all our welcome

    I have switched bank accounts and cancelled DD and I do think I feel slightly better I've started but only just and a long road ahead!   
  • NeverendingDMP
    NeverendingDMP Posts: 2,211 Forumite
    Seventh Anniversary 1,000 Posts Name Dropper
    Unsure if it's different for you but in ngland we can get a new fixed rate with our current provider when our mortgage rate runs out. If we stay with our current provider it can usually be done online and without credit/affordability checks. I got the impression your fix has ended and your mortgage had gone up to standard variable. Apologies if I've misread/completely made that up 😂
    Jan 18 Joint debts 35,213

    Mortgage Jan 18- 77224 May 25- just under 65k

    June 25 Debts in my name only £5170. DH can't keep track...
  • MFWannabe
    MFWannabe Posts: 2,458 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Knotintherope said:
    Statement of Affairs and Personal Balance Sheet

    Household Information[/b]
    Number of adults in household........... 2
    Number of children in household......... 0
    Number of cars owned.................... 1

    Monthly Income Details[/b]
    Monthly income after tax................ 2036
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 2036

    Monthly Expense Details[/b]
    Mortgage................................ 430
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 42
    Electricity............................. 45
    Gas..................................... 5
    Oil..................................... 90
    Water rates............................. 0
    Telephone (land line)................... 0
    Mobile phone............................ 0
    TV Licence.............................. 7
    Satellite/Cable TV...................... 65
    Internet Services....................... 0
    Groceries etc. ......................... 0
    Clothing................................ 0
    Petrol/diesel........................... 0
    Road tax................................ 7
    Car Insurance........................... 20
    Car maintenance (including MOT)......... 0
    Car parking............................. 0
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 29
    Pet insurance/vet bills................. 35
    Buildings insurance..................... 21
    Contents insurance...................... 0
    Life assurance ......................... 19
    Other insurance......................... 12
    Presents (birthday, christmas etc)...... 0
    Haircuts................................ 0
    Entertainment........................... 9
    Holiday................................. 0
    Emergency fund.......................... 0
    Total monthly expenses.................. 836

    Assets
    Cash.................................... 0
    House value (Gross)..................... 180000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 180000


    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 87026....(430)......0
    Total secured & HP debts...... 87026.....-.........-   

    Unsecured Debts
    Description....................Debt......Monthly...APR
    Tesco CC.......................6962......171.......0
    PayPal Credit..................4192......150.......0
    Amex...........................2515......114.......0
    Novuna.........................2704......242.......0
    Novuna PL......................1511......91........0
    Novuna PL......................3126......100.......0
    Virgin CC......................3890......110.......0
    MBNA...........................4647......187.......0
    Vanquis........................861.......40........0[b]
    Total unsecured debts..........30408.....1205......-  [/b]


    Monthly Budget Summary
    Total monthly income.................... 2,036
    Expenses (including HP & secured debts). 836
    Available for debt repayments........... 1,200
    Monthly UNsecured debt repayments....... 1,205
    Amount short for making debt repayments. -5

    [b]Personal Balance Sheet Summary
    Total assets (things you own)........... 180,000
    Total HP & Secured debt................. -87,026
    Total Unsecured debt.................... -30,408
    Net Assets.............................. 62,566

    [Created using the SOA calculator at www.LemonFool.co.uk.
    Reproduced on Moneysavingexpert with permission, using other browser.

    A slightly more accurate version to give a better split on what expenses I split with my wife through our joint account.
    Although it doesn't make any better reading!!
    I haven't included presents or groceries as we try to get away with as little as possible!
    Now I realise and so can anyone reading this why my credit card debt has increased at such a rapid rate

    Again thank you for your comments all our welcome

    I have switched bank accounts and cancelled DD and I do think I feel slightly better I've started but only just and a long road ahead!   
    You’re spending a ridiculous amount of money on satellite tv and broadband; are you out of contract? If you are you need to cancel; just have internet only. 
    Ref mortgage are you on the lenders svr? What are the interest rates on fixed deals and other current lender 
    Your soa is really hard to work out, you really should do one as a household; would be much easier: Also need to enter APR’s 
    MFW 2025 #50: £1139.75/£6000

    12/06/25: Mortgage: £65,000.00
    07/03/25: Mortgage: £67,000.00
    18/01/25: Mortgage: £68,500.14
    27/12/24: Mortgage: £69,278.38 

    27/12/24: Debt: £0 🥳😁
    27/12/24: Savings: £12,000

    07/03/25: Savings: £16,500

  • enthusiasticsaver
    enthusiasticsaver Posts: 16,062 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    I assume you are paying interest on those debts? As you say there is no allowance for groceries or other things like fuel or haircuts, presents etc. it isn’t sustainable to pay £1200 to debt when all the rest of your money is going on bills leaving you nothing to live off. So stop paying the cards, wait for the defaults and save for emergencies. 


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  • Knotintherope
    Knotintherope Posts: 19 Forumite
    10 Posts First Anniversary Name Dropper
    NeverendingDMP said:
    Unsure if it's different for you but in ngland we can get a new fixed rate with our current provider when our mortgage rate runs out. If we stay with our current provider it can usually be done online and without credit/affordability checks. I got the impression your fix has ended and your mortgage had gone up to standard variable. Apologies if I've misread/completely made that up 😂
    Can’t remember when our deal ran out but you couldn’t get lower than what we were on … 26k of our mortgage is interest only and the rest is base rate + so combined it’s went through the roof and almost doubled over the last couple of years …. Roll on a cut in interest rates 
  • EssexHebridean
    EssexHebridean Posts: 24,424 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 3 February 2024 at 3:34PM
    OP - I think some of the issue here is that you reduced your income (well done for making the right decision for your own well-being on that - not easy!) but your lifestyle didn’t change as it needed to. Combined with the other factors this has left you using credit for day to day expenses, would that be fair? 

    On the original SOA you stated £200 for groceries, was that based on 50% of the spend? Unless you and your partner shop,  cook and eat separately you need to bring that spending into your joint figures as well ideally - although you may well currently budget that you pay for food, and your partner pays for something else “joint” from your budget - is that the case? 
    Regardless, you need to set out your household budget for this, then shop in a way that helps you stick to that figure. I suspect at the moment you don’t really know what is seton, and I also suspect that your “little as possible” isn’t as low as you think it is! Do you meal plan? Shop from a list? Only buy the things that are on that list? Minimise food waste by starting your meal plan each week by incorporating anything in the fridge that needs using? You could start your next week’s meal plan by making use of foods from your freezer and cupboards as far as possible - only buying fresh if what you need to then make those meals, this can be a great way of keeping grocery spending down for a while. 

    I’d also say that you need to have a think about those debts - did they accrue through personal spending, or from topping up the household budget? If the latter, then your partner needs to be involved in clearing them too as they are in essence “joint” debts - the responsibility for them lies with you both as presumably you both knew the income had changed. Even if they are personal, you still need to be honest with your partner about them - otherwise they won’t realise the extent of your situation and it will be tougher for you to then deal with things. 
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00 Balance as at 31/12/23 = £112,000.00
    Balance as at 31/08/24 = £105,400.00 Balance as at 31/12/24 = £102,500.00
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