Lightbulb moment - but now queries.....

lightbulbmoment2024

Hi Everyone! 
I had my lightbulb moment about a month ago. Already stopped DD's and any payments. With the exception of 1. I have a loan through Salary Finance which comes out of my pay before i receive it. Any idea what to do about this? I work in Financial Services so I don't think it will look good from a work perspective. Due to it coming out my pay there is no DD either. It is £280 a month, and where i have 450-500 to throw at debt, this is taking a large chunk!

My other question is about defaults. I am apprehensive about them, as I rent. As a single parent, it is all on me. So will the defaults impact the ability to rent easily. I know CCJ's do; but unsure about defaults. 

Thank you!

enthusiasticsaver

Yes defaults will show up if landlords check your credit record. I suggest you put a soa up so we can advise better. 

Sncjw

I don't think you will be able to get out the salary sacrifice loan. 

born_again

You should think long & hard about loan through Salary Finance which comes out of my pay before you receive it. As stopping paying can lead to loss of role in Financial Services sector.

Have a word with HR about the situation, as they will find out sooner or later that you have stopped paying debts. As they often can run credit checks as part of their processes.
Better to be up front, then them finding out later.

Brie

What is your intent going forward?  If it's bankruptcy or DRO I "think" there may be issues in the financial industry if you have those.  Maybe IVA too, perhaps not with DMP.  Definitely talk to HR or your union rep.

The loan going through payroll would likely have been guaranteed by your employer in some way so I'd be very careful about that.  

Agree that an SOA would be useful.

lightbulbmoment2024

My SOA:

Household Information[/b]

Number of adults in household........... 1

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

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

Monthly Income Details[/b]

Monthly income after tax................ 3826

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

Benefits................................ 230

Other income............................ 150[b]

Total monthly income.................... 4206[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 0

Secured/HP loan repayments.............. 220

Rent.................................... 1575

Management charge (leasehold property).. 0

Council tax............................. 167

Electricity............................. 80

Gas..................................... 80

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

Water rates............................. 45

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

Mobile phone............................ 25

TV Licence.............................. 13

Satellite/Cable TV...................... 40

Internet Services....................... 30

Groceries etc. ......................... 480

Clothing................................ 60

Petrol/diesel........................... 100

Road tax................................ 17

Car Insurance........................... 27

Car maintenance (including MOT)......... 60

Car parking............................. 20

Other travel............................ 0

Childcare/nursery....................... 200

Other child related expenses............ 70

Medical (prescriptions, dentist etc).... 45

Pet insurance/vet bills................. 40

Buildings insurance..................... 0

Contents insurance...................... 18

Life assurance ......................... 0

Other insurance......................... 0

Presents (birthday, christmas etc)...... 0

Haircuts................................ 20

Entertainment........................... 80

Holiday................................. 80

Emergency fund.......................... 25[b]

Total monthly expenses.................. 3617[/b]

[b]

Assets[/b]

Cash.................................... 200

House value (Gross)..................... 0

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

Car(s).................................. 7000

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

Total Assets............................ 7200[/b]

[b]

Secured & HP Debts[/b]

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

Mortgage...................... 0........(0)........0

Hire Purchase (HP) debt ...... 3500.....(120)......11.8<

HP - Sofa......................1100.....(100)......0[b]

Total secured & HP debts...... 4600......-.........-   [/b]

[b]Unsecured Debts[/b]

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

Pulse..........................8150......280.......38.58

Marbles........................6800......270.......42.19

Vanquis........................1700......100.......37.68

Abound Loan....................8300......255.......19.4

Salary Finance Loan............9800......257.......19.9

Asda...........................2400......95........23.09

Virgin.........................1450......45........26.49

Zable..........................1450......70........38.5[b]

Total unsecured debts..........40050.....1372......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 4,206

Expenses (including HP & secured debts). 3,617

Available for debt repayments........... 589

Monthly UNsecured debt repayments....... 1,372[b]

Amount short for making debt repayments. -783[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 7,200

Total HP & Secured debt................. -4,600

Total Unsecured debt.................... -40,050[b]

Net Assets.............................. -37,450[/b]


All DD's cancelled with the exception of the Salary Finance. This was done pretty quickly, so if there are any glaring errors, please let me know.

lightbulbmoment2024

As you can probably tell, I have done the 'i'll consolidate to one payment' and then well spending to keep afloat. 
The interest rates are extortionate, they were not that high when they were taken out, or such high balances. Would you believe the Pulse was near maxxed out, and they wrote at the start of March to increase my credit by £150?? 

Andyjflet

You are obviously proof that the consolidation loan route rarely works, people still try to run their lives and brining up two children and their needs means dipping into the credit cards.

Are you south based as your rent is massive? is this something you could change?

lightbulbmoment2024

Yes in the South. That is for a 2 bed that isn't in a great condition. We wanted a 3 bed but although my salary means i could afford it (on paper!), but cost wise this was the better option. It is very expensive round here but we are tied to this area, due to job, school and ex husband. 

stu12345_2

how does an ex husband tie you to live where you are, im 650 miles from ex wife and the further the better , and we are in the UK 
 the only thing that legally prevents you moving is if you are moving abroad with his children and he has to agree to that.
I originally moved 100 miles from her and had access to my daughter, but it was up to me to do the journey to collect her fortnightly, then I decided I'm moving far south coast , new job, new home, new partner and that was that.

ex wife could not stop me, just meant I saw my daughter less. 

as kids grow up , they start to become "annoyed" with mummy or daddys access rights, soon they will rather spend every weekend with their school friends hanging out and about.

then comes the point where they decide when they want to see you, when they're not too "busy" 

TheAble

Worth a check of your contract of employment to find out exactly how debt management might have an impact on your job. You've identified it might be an issue but it would be a good thing to establish the facts for sure.