Start of debt free journey

Rob5342

MEM62 said:

turbocat2024 said:

I got the triple lock offer with Clear Score for the loan from memory which guarantee rate, amount and approval but may or may not have accurately put down my monthly expenses or financial dependants,

If you lied on the application then I do not see how you can successfully argue a complaint based on affordability.  

You can search FOS ombudsman decisions here (made after lenders have rejected complaints and people have escalated them to the FOS). There are a number of cases where people have put inaccurate figures when applying and the FOS decision has been that the lender should have done more to check the figures were correct. 

You might as well try everything you can. I made a complaint about a credit limit that Nationwide had given me, it took two years overall but I ended up with a £16,000 interest refund. I'd gets complaints in to them all now, and also send CCA requests one they have been with DCAs for a while.

https://www.financial-ombudsman.org.uk/decisions-case-studies/ombudsman-decisions

Rob5342

turbocat2024 said:

Its my fault I am in this mess not theirs...

Don't think like that, regardless of your actions they should have acted responsibly when lending to you and if they didn't they have to put things right. PayPal gave me a credit line even though I'd had multiple payday loans on the go at the same time for the previous year. The FOS found in my favour and said that they should never have lent to me.

Keep at it and push them all as far as you can. All of mine were rejected by the original creditor and I escalated them all to the FOS. I had a few where they found iny favour at invesigoto level, one where they found in my favour after pushing it to ombudsman level, and a few they found against me after pushing to ombudsman level. It can be a long path but just one win can make a big difference, and all it costs is your time.

sourcrates

MEM62 said:

turbocat2024 said:

I got the triple lock offer with Clear Score for the loan from memory which guarantee rate, amount and approval but may or may not have accurately put down my monthly expenses or financial dependants,

If you lied on the application then I do not see how you can successfully argue a complaint based on affordability.  

One of the main reasons for the 2008 financial crash was lenders own staff inflating customers income figures to make them appear a more attractive prospect, in order for the customer to secure the borrowing, and them to secure their bonus.

It`s also a well known fact customers artificially inflate their incomes on loan applications.

However, it should be expected that lenders are held to a higher degree of scrutiny, as a professional body, and at the time no one was doing so.

This kind of thing was rife in the industry, alongside PPI mis-selling, the rules were being broken on a daily basis by all and sundry, and they lied about it !!

This continued well into the next decade, until these sorts of practices were revealed by the likes of this and other websites, and caused the FCA to act.

Don`t imagine for one second these lending institutions were above this kind of thing, they were as deep into it as an Alabama tick on a coyote, which is why they have repaid millions in redress.

turbocat2024

Hey all, I have been working on my SOA which I will send to each creditor after I default, my plan is to pay them 216 a month and save 250 a month in fighting fund which will be topped up with half my bonus each year so that I should have 30-40% F+F fund saved up in 5 years. Does this SOA look ok, it is an accurate picture of the last 4 months, thanks

Groceries we online shop and this covers work lunch, school lunches we cook and eat nice meals maybe get a takeaway once a week which is build into the 700, 161 per week

Travel 440 is commute into London flexi season 8 trips in 4 weeks

Car maintenance, service, brake pads, recently alternator replacement averages about 1k a year

Water rates maybe high but kids 5 and 8, they use a lot of water

Sky TV we dont go out pubbing so entertains the adults and kids

Internet I work from home 3 days a week so need a strong connection

Entertainment/Holiday/EF is what I am playing with to bring the output to 216 for DMP

Thanks will put the SOA in a new comment

turbocat2024

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household...........  2

Number of children in household.........  2

Number of cars owned....................  1[b]

Monthly Income Details[/b]

Monthly income after tax................ 4280

Partners monthly income after tax....... 0

Benefits................................ 0

Other income............................ 0[b]

Total monthly income.................... 4280[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 1226

Secured/HP loan repayments.............. 0

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 147

Electricity............................. 100

Gas..................................... 100

Oil..................................... 0

Water rates............................. 87

Telephone (land line)................... 0

Mobile phone............................ 56

TV Licence.............................. 14

Satellite/Cable TV...................... 52

Internet Services....................... 38

Groceries etc. ......................... 700

Clothing................................ 75

Petrol/diesel........................... 40

Road tax................................ 32

Car Insurance........................... 41

Car maintenance (including MOT)......... 80

Car parking............................. 5

Other travel............................ 440

Childcare/nursery....................... 0

Other child related expenses............ 120

Medical (prescriptions, dentist etc).... 40

Pet insurance/vet bills................. 55

Buildings insurance..................... 41

Contents insurance...................... 0

Life assurance ......................... 55

Other insurance......................... 20

Presents (birthday, christmas etc)...... 50

Haircuts................................ 50

Entertainment........................... 100

Holiday................................. 150

Emergency fund.......................... 150[b]

Total monthly expenses.................. 4064[/b]

[b]

Assets[/b]

Cash.................................... 4000

House value (Gross)..................... 345000

Shares and bonds........................ 0

Car(s).................................. 10000

Other assets............................ 0[b]

Total Assets............................ 359000[/b]

[b]

Secured & HP Debts[/b]

Description....................Debt......Monthly...APR

Mortgage...................... 244000...(1226).....4.5[b]

Total secured & HP debts...... 244000....-.........-   [/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

Barclay Card...................18000.....400.......12

HSBC...........................15000.....397.......18

Virgin.........................5300......53........0

Novuna.........................31000.....408.......10

MBNA 3.........................7500......188.......0

MBNA 2.........................15000.....393.......24

MBNA 1.........................14000.....318.......24[b]

Total unsecured debts..........105800....2157......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 4,280

Expenses (including HP & secured debts). 4,064

Available for debt repayments........... 216

Monthly UNsecured debt repayments....... 2,157[b]

Amount short for making debt repayments. -1,941[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 359,000

Total HP & Secured debt................. -244,000

Total Unsecured debt.................... -105,800[b]

Net Assets.............................. 9,200[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

Martico

turbocat2024 said:

Hey all, I have been working on my SOA which I will send to each creditor after I default, my plan is to pay them 216 a month and save 250 a month in fighting fund which will be topped up with half my bonus each year so that I should have 30-40% F+F fund saved up in 5 years. Does this SOA look ok, it is an accurate picture of the last 4 months, thanks

I'd question the wisdom of showing creditors an SOA showing £4,000 cash-in-hand and space to save further. I wouldn't think there's a need to be quite so open with them. If on a DMP, you should be able to just tell them what you are able to pay them per month and they'll take it.  

turbocat2024

Martico said:

turbocat2024 said:

Hey all, I have been working on my SOA which I will send to each creditor after I default, my plan is to pay them 216 a month and save 250 a month in fighting fund which will be topped up with half my bonus each year so that I should have 30-40% F+F fund saved up in 5 years. Does this SOA look ok, it is an accurate picture of the last 4 months, thanks

I'd question the wisdom of showing creditors an SOA showing £4,000 cash-in-hand and space to save further. I wouldn't think there's a need to be quite so open with them. If on a DMP, you should be able to just tell them what you are able to pay them per month and they'll take it.  

Point noted, think for me this was just a put it all out there for this forum only and then when it comes to setting up the payments I was just going to pay them from the 216 realised my wording, I gather when self DMP I just setup a standing order and pay them without sending the I&E

enthusiasticsaver

I would not send them that soa either as it shows £4000 in cash and some of those categories are over inflated. You will need to self manage as on a monthly repayment figure of £216 and debts of over £105k that would take over 40 years to clear.  

RAS

You really need to be finding near enough £1000 per month towards repayment with that level of debt. It's doable if you understand that you couldn't afford the lifestyle you used to have and you can't afford the sort of lifestyle you'd like until that debt is paid off.

Depending on the age of your children, one of the best things you as a couple could do is arrange for your partner to work part-time as anything up to the tax limit is nearly 100% cash in the bank. That could make a huge impact on your debt busting, even if they can't start for a couple of years.

Otherwise many of your allocations indicate an aspirational life style, not debt busting. And a number of elements suggest you haven't done things like reviewed insurances before renewing, changed to SIM only when your contract ends, downgraded the car. Do you really even need a car?

turbocat2024

I get what your saying but trying to plan this to work to our situation. Partner will look for part time work so we have options to speed up the DMP, I am also going to change my work package benefits, temporarily stop private medical and dental insurance so should free up £200 more a month.

I work out I can clear 90% of the debt in 10 years by paying

£216 per month to DMP = £26k
Save half of my yearly bonus = £30k (£3k x 10 years)
Save rest of disposable income = £44k (£365 per month x 10 years)

I can then speed this up by Partners part-time job,  full and final settlements and any salary increase.

We need the Car, the nearest family member is 3 hour drive, and the grandparents are 6 hours away, for sanity Kids are just easier with a car and the current car is practical/family car that fits in the dog, kids and all their "stuff" and everything else. We have just paid out on a fair bit of repairs/maintenance so should be good to hold on to for a while.

Mobile is x 2 but we will switch to sim only when contracts run out.

I am trying not to have my cake and eat it too but after LBM trying to plan my way out of it.

I will do affordability letters, I just don't see how giving me a total credit limit of £130k on my salary is responsible lending but my goal now is to get off and stay off credit.

Just trying to be open and honest, but guess from posting my SOA should I try to front load more on the DMP payments and cut back on the monthly saving ?

Thanks as always for your advice and time giving it