Looking for a little guidance to start my journey towards becoming debt-free.

IRunFar

Thank you! 

IRunFar

Just in case it helps anyone else who might be following this thread - I've also drawn this to attention of the FOS. I’m not sure if it has any bearing on the main affordability issue, but I felt it was important to let them know. Oft. My nerves are very shaken by this tbh. 

RAS

There's a likelihood that you rang them from work once upon a time. You may not have realised that they had retained the number.

IRunFar

Hi again - I've had a very polite (and quick) response from them. Should I go back and acknowledge it. Grateful again for any thoughts. Here's their email: 

Good Morning, 

Thanks for your email.

I would like to start by saying how sorry I am that you have had cause for further complaint and can confirm that I have removed all telephone numbers attached to your account with us and that future correspondence will be done in writing only via email or post. I have also cc'd in our complaints team so they are aware of this email and its contents. 

In regards to the contact please be assured that this was not done with any intention to harass or annoy, we are simply trying to reconnect with you in order to try and help you resolve the current arrears on your loan and also to help you resolve all future payments due on the account. 

At present there has been no communication from yourself or any 3rd party acting on your behalf to advise what your intentions and circumstances are. When any customer encounters financial difficulty and are unable to keep up the repayments on their loan account we take pride in our ability to assess their circumstances and help them find a solution to suit their unique situation.

I would like opportunity to do this for yourself, what would your suggestion be to discuss and resolve this? I am available until 5pm today to discuss and Monday from 9.30am -5.30pm.

sourcrates

You can email back and tell them your plans, can`t hurt can it, ask them to default the account sooner rather than later.

It may not quicken the process, but may take you off the contact list.

IRunFar

Thanks - I'll do that now. Might help as you say.

katsu

IRunFar said:

Thank you, ManyWays!

I’ve followed your suggestion. It wasn't the most enjoyable experience, but it's always best to face the numbers head-on I guess. I can see where we can cut back, and I'll start making those changes right away. However, it won't fully address the issue we're facing clearly! 

I've included a £200 Household Emergency Fund that we haven't actually been building up yet, but would like to - and I've added £400 plus a little extra for groceries to cover the upcoming university expenses. Mobile phone costs are currently quite high since we're tied into pricey contracts, but they'll be ending soon! Then we can switch to Pay as You Go options. 

Household Information

Number of adults in household........... 3

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

Number of cars owned.................... 1

Monthly Income Details[/b]

Monthly income after tax................ 4439

Partners monthly income after tax....... 1925

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

Other income............................ 0

Total monthly income.................... 6364

Monthly Expense Details[/b]

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

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

Rent.................................... 1600

Management charge (leasehold property).. 0

Council tax............................. 166

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

Gas..................................... 0

Oil..................................... 100

Water rates............................. 40

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

Mobile phone............................ 205 - get the dates in the diary to get this reduced as soon as the contracts end 

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

Satellite/Cable TV...................... 50 - do you really watch this? Why not cancel and see if you miss it? 

Internet Services....................... 77 - this is a lot when it's only Internet

Groceries etc. ......................... 585

Clothing................................ 100 - could you reduce this? 

Petrol/diesel........................... 255

Road tax................................ 30

Car Insurance........................... 59

Car maintenance (including MOT)......... 40 - are you saving this now? 

Car parking............................. 0

Other travel............................ 200

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

Other child related expenses............ 400

Medical (prescriptions, dentist etc).... 200 - can you get this cheaper? 

Pet insurance/vet bills................. 0

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

Contents insurance...................... 19

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

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

Presents (birthday, christmas etc)...... 100

Haircuts................................ 100 - can you change your style, go a week longer or try a college with students in training? 

Entertainment........................... 140 - I would be looking to reduce the £440 in these 4 categories. 

Holiday................................. 100

Emergency fund.......................... 200 - are you saving this now OK? 

Total monthly expenses.................. 4860

Assets[/b]

Cash.................................... 0

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

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

Car(s).................................. 0

Other assets............................ 0

Total Assets............................ 0

[b]

No Secured nor Hire Purchase Debts

[b]Unsecured Debts[/b]

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

Plata..........................5500......324.......34.9

Oodle..........................10755.....267.......18.7

Monzo Loan.....................6965.22...174.......33.4

Lendable.......................2130......96........23.5

Monzo Flex A...................2000......190.......29

Monzo Flex E...................3517.51...284.5.....29

Capital One A..................2000......100.......30.34

Aqua A.........................6000......360.......29.6

Elvo...........................10000.....453.......52.9

Aqua E.........................2021.77...100.......29.6

Capital One E..................1788.86...97.1......30.34

Zable..........................1497......75........43.15[b]

Total unsecured debts..........54175.36..2520.6....-  [/b]

[b]

Monthly Budget Summary

Total monthly income.................... 6,364

Expenses (including HP & secured debts). 4,860

Available for debt repayments........... 1,504

Monthly UNsecured debt repayments....... 2,520.6

Amount short for making debt repayments. -1,016.6

[b]Personal Balance Sheet Summary

Total assets (things you own)........... 0

Total HP & Secured debt................. -0

Total Unsecured debt.................... -54,175.36

Net Assets.............................. -54,175.36

The good news is that I think you can get quite a few savings here. First question is... how accurate is your SOA? Now you are about 2 months on, does this match what you've been spending? Have you saved all the money listed like £100 for gifts and all the money you aren't paying on your debts? If not, it's a great time to review and update your SOA.

Good luck and I hope these ideas help you. 

IRunFar

Thanks for this @katsu - great advice! You're absolutely right, it's time to review things for a couple of reasons. Firstly, my son is about to head off to university, so I’ll need to factor in a bit of support for him as he starts this exciting new chapter. Also, my employer has introduced a return-to-office mandate, so my commuting costs are likely to rise. Thanks again for the prompt - I’ll get cracking on the SOA review. I haven't made much progress on savings, but have managed to bank a bit.

In other news, it looks like Aqua have passed my husband’s £6,000 debt to Moorcroft, as they’ve started calling regularly. Do we need to write a holding letter to Moorcroft now and explain the situation - that we’re preparing a DMP and will be in touch shortly?

And finally, just to say that the FSO are now supporting me with my Evlo complaint — and for anyone else thinking of going down that route, they’ve been really helpful. Regardless of the final outcome, they’re making the process very smooth and professional, which has made a big difference. Thanks again all!