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jones_guitar
Posts: 172 Forumite


Hi, I posted here recently. This past year was the worst year I had in a good while.
I was in and out of employment and ended up living at home with my parents.
I won't go into it, but I ended up 15k in debt.
I got a new job. However, am fearful of the future. I feel I am better off saving an emergency fund and defaulting everything. I do have two mortgages. The second has an 11.4 interest rate. In all honesty was my priority.
So far nothing as defaulted. Any advice would be appreciated.
Aqua CC, Vanquis, Lendeble Loans, Zable CC, Virgin Money CC, Zopa CC, Samsung Finance.
This isn't a decision I am proud of. But, I'm screwed if something happens work wise.
I was in and out of employment and ended up living at home with my parents.
I won't go into it, but I ended up 15k in debt.
I got a new job. However, am fearful of the future. I feel I am better off saving an emergency fund and defaulting everything. I do have two mortgages. The second has an 11.4 interest rate. In all honesty was my priority.
So far nothing as defaulted. Any advice would be appreciated.
Aqua CC, Vanquis, Lendeble Loans, Zable CC, Virgin Money CC, Zopa CC, Samsung Finance.
This isn't a decision I am proud of. But, I'm screwed if something happens work wise.
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Comments
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The debts you list are nonpriority.
However, the 11.4% mortgage sounds horrendous. Before the defaults hit, can you move that to a better rate?0 -
Na, I missed payments already. I was in the middle of remortgaging when I quit a job.
It is only a.small second charge at £35,000. But, yes getting rid of this is.more important to me.
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you say you're screwed if you lose your job. yes the first 2 years in a new job is the worst, you get very little employment law protection if they decide to get rid of you.
imo I'd save min 3 months worth of payments to cover life's outgoings ( excluding consumer debts repayment amounts)and keep paying that high interest mortgage at same time.
but keep it below £6000 if you need to claim any DWP benefits if you ever lose your job through no fault if your own.
consumer credit debts can take a backseat in the meantime.just monitor what letters they send you
emails and phone calls can be ignoredChristians Against Poverty solved my debt problem, when all other debt charities failed. Give them a call !! ( You don't have to be a Christian ! )
https://capuk.org/contact-us0 -
I read some comments about some creditors not defaulting? Is there any guidance about when default should appear?0
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3 to 6 months is the normChristians Against Poverty solved my debt problem, when all other debt charities failed. Give them a call !! ( You don't have to be a Christian ! )
https://capuk.org/contact-us0 -
The guidance says 2-4 missed payments but it mostly seems to be ignored
https://www.scoronline.co.uk/key-documents/
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Hi Stu, what did they do for you?1
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they gave me a debt relief order, dro , when others would not., is that what you mean
I did the long dmp, didnt want to do it after a period of time, I wrote cca letters, they all came back valid, I tried full and final settlements, could only afford one of them, which was decent,
so, I dropped hours at work via a new job, asked for write offs, only one accepted.
then went for dro, as a nuclear option to get out of debt and keep my car, CAB or moneywellness hit me with barriers.
but Christians against poverty were not awkward and got dro yesterday via themChristians Against Poverty solved my debt problem, when all other debt charities failed. Give them a call !! ( You don't have to be a Christian ! )
https://capuk.org/contact-us0 -
If you have a mortgage presumably you own a property in which case unfortunately you won't be able to get a DRO that stu suggests.
That said I do suggest you talk to some debt advice agency to help you get things sorted. StepChange, NationalDebtline, CAP (that stu suggests) or CMA (Community Money Advice) will all help you contact your creditors and come to some arrangement with them. There are other organisations that do debt advice as a business but are best avoided as you end up paying them rather than your creditors. CMA will help organise a DIY debt management plan and all correspondence can be through them if that makes things easier for you.
Meanwhile I suggest not to ring, text or email anyone but to do everything by post so that none of them get too many contact details for you and have ways to harass you. Or set up a dedicated email address that is just for your debts so you can separate them from your personal life.
Short version of advice is to stop paying all the cards/loans and keep plugging away at the mortgage. Tell the card/loans that you won't be paying until further notice. They will come back and ask for a budget to verify you can't afford to pay. The debt advice agencies are ace at doing these which is why it's great to engage with one of them.
Best of luck sorting it - it will take a while but loads of people succeed.I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe, Old Style Money Saving and Pensions boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
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Brie said:Tell the card/loans that you won't be paying until further notice. They will come back and ask for a budget to verify you can't afford to pay. The debt advice agencies are ace at doing these which is why it's great to engage with one of them.0
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