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Debt help
Trainspotter90
Posts: 12 Forumite
Hello
wondered if you could help please?
wondered if you could help please?
I’ve got myself into a tough situation which I know I’m responsible for and have made mistakes over the years I don’t think mentally I was in right place and have got £132,000 worth of debt that I’m now trying to pay off.
I’ve gone through Stepchange to step up a DMP with them and making payments to companies I owe money too. Unfortunately some of these accounts are going to default and I’m worried about what’s going to happen next? Myself and and wife both work full time and bring home £6,200 month after tax in income! We are making payments to Stepchange of £2,754 month to pay off our debts for us! We have a mortgage which we are paying £554 month and no arrears from them!
Below are my debts and current balances
- ZOPA BANK LOANS£18,130.29
- ZOPA BANK LOANS£17,663.13
- NOVUNA CONSUMER£13,816.64
- ZOPA BANK LOANS£13,120.72
- ZOPA BANK LOANS£12,618.47
- NOVUNA CONSUMER £12,151.63
- VIRGIN MONEY £10,457.95
- ZOPA BANK LOANS£9,281.49
- VIRGIN MONEY CRE£8,307.97
- MBNA Limited£5,290.15
- ZOPA BANK LOANS£4,727.08
- TSB BANK overdraft£2,246.41
- LINK FINANCIAL O...£1,779.92
- LINK FINANCIAL O...£1,674.54
- VIRGIN MONEY CRE...£1,552.39
With me making payments to Stepchange I should be debt free by June 2028!
Any advice on what I could possibly do next to help would be much appreciated, mentally I’m not in a great place been having panic attacks and struggling to sleep too!
Thank you in advance and appreciate your help.
0
Comments
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First, can you post a full SOA?
https://www.lemonfool.co.uk/financecalculators/soa.php2 -
What you should have done is wait for the debts to default before you even thought about repaying them. Why? If the debts haven't defaulted they will be marked with Arrangement to Pay, they don't go from your credit report until 6 years after your final payment, so if it takes you 4 years to repay it is on your credit report for 10 years. Defaults disappear after 6 years even if they haven't been paid off.
Stepchange don't tell you this and they encourage you to start a DMP too soon.If you go down to the woods today you better not go alone.1 -
If you are in a DMP you should have already let the accounts default, if not then you should stop paying until they do.Trainspotter90 said:Hello
wondered if you could help please?I’ve got myself into a tough situation which I know I’m responsible for and have made mistakes over the years I don’t think mentally I was in right place and have got £132,000 worth of debt that I’m now trying to pay off.I’ve gone through Stepchange to step up a DMP with them and making payments to companies I owe money too. Unfortunately some of these accounts are going to default and I’m worried about what’s going to happen next?
We will need a bit more information to be able to help, based on those figures you do not really have an issue with the repayments as you still have £2,892 left for everything else every month, which I am surprised your creditors are allowing you to cut your payments that low on that basis.Trainspotter90 said:Myself and and wife both work full time and bring home £6,200 month after tax in income! We are making payments to Stepchange of £2,754 month to pay off our debts for us! We have a mortgage which we are paying £554 month and no arrears from them!
That totals £132k of debt, give or take. Do you know what you have spent the money on? Have you cut your spending to a bare minimum now? Is there some backstory to all the debt as unless there as a huge drop in income you might be able to argue affordability complaints against some (but not all) of the debt, though that might also depend on the contractual payments before you default and stop paying interest as at the moment you do have the headroom to pay all your debts.Trainspotter90 said:Below are my debts and current balances- ZOPA BANK LOANS£18,130.29
- ZOPA BANK LOANS£17,663.13
- NOVUNA CONSUMER£13,816.64
- ZOPA BANK LOANS£13,120.72
- ZOPA BANK LOANS£12,618.47
- NOVUNA CONSUMER £12,151.63
- VIRGIN MONEY £10,457.95
- ZOPA BANK LOANS£9,281.49
- VIRGIN MONEY CRE£8,307.97
- MBNA Limited£5,290.15
- ZOPA BANK LOANS£4,727.08
- TSB BANK overdraft£2,246.41
- LINK FINANCIAL O...£1,779.92
- LINK FINANCIAL O...£1,674.54
- VIRGIN MONEY CRE...£1,552.39
You need to post a full SOA and we can help, but you also have to accept that with that level of debt and the fact that you own a property you are going to have to pay most of the debt back, the alternative is to sell your home and buy somewhere smaller, or rent.Trainspotter90 said:With me making payments to Stepchange I should be debt free by June 2028!Any advice on what I could possibly do next to help would be much appreciated, mentally I’m not in a great place been having panic attacks and struggling to sleep too!Thank you in advance and appreciate your help.
1 -
I thought you could default and your property would not be affected?MattMattMattUK said:
If you are in a DMP you should have already let the accounts default, if not then you should stop paying until they do.Trainspotter90 said:Hello
wondered if you could help please?I’ve got myself into a tough situation which I know I’m responsible for and have made mistakes over the years I don’t think mentally I was in right place and have got £132,000 worth of debt that I’m now trying to pay off.I’ve gone through Stepchange to step up a DMP with them and making payments to companies I owe money too. Unfortunately some of these accounts are going to default and I’m worried about what’s going to happen next?
We will need a bit more information to be able to help, based on those figures you do not really have an issue with the repayments as you still have £2,892 left for everything else every month, which I am surprised your creditors are allowing you to cut your payments that low on that basis.Trainspotter90 said:Myself and and wife both work full time and bring home £6,200 month after tax in income! We are making payments to Stepchange of £2,754 month to pay off our debts for us! We have a mortgage which we are paying £554 month and no arrears from them!
That totals £132k of debt, give or take. Do you know what you have spent the money on? Have you cut your spending to a bare minimum now?Trainspotter90 said:Below are my debts and current balances- ZOPA BANK LOANS£18,130.29
- ZOPA BANK LOANS£17,663.13
- NOVUNA CONSUMER£13,816.64
- ZOPA BANK LOANS£13,120.72
- ZOPA BANK LOANS£12,618.47
- NOVUNA CONSUMER £12,151.63
- VIRGIN MONEY £10,457.95
- ZOPA BANK LOANS£9,281.49
- VIRGIN MONEY CRE£8,307.97
- MBNA Limited£5,290.15
- ZOPA BANK LOANS£4,727.08
- TSB BANK overdraft£2,246.41
- LINK FINANCIAL O...£1,779.92
- LINK FINANCIAL O...£1,674.54
- VIRGIN MONEY CRE...£1,552.39
You need to post a full SOA and we can help, but you also have to accept that with that level of debt and the fact that you own a property you are going to have to pay most of the debt back, the alternative is to sell your home and buy somewhere smaller, or rent.Trainspotter90 said:With me making payments to Stepchange I should be debt free by June 2028!Any advice on what I could possibly do next to help would be much appreciated, mentally I’m not in a great place been having panic attacks and struggling to sleep too!Thank you in advance and appreciate your help.0 bonus saver
35 NS&I
233 credit union
0 Computer
Credit card 2250
Overdraft 00 -
Not directly, but I think you are misunderstanding. So if someone has no property and the debtor goes into a DMP the creditor will recognise that they have very little prospect of recovery if they push harder, the debtor could just go bankrupt. If the debtor has property then they are somewhat less free to just walk away from their debts, as such they not going to accept tiny DMP repayments, as evidenced by the OP's monthly figure representing around £100k of repayments over the period they mention.itsthelittlethings said:
I thought you could default and your property would not be affected?MattMattMattUK said:
If you are in a DMP you should have already let the accounts default, if not then you should stop paying until they do.Trainspotter90 said:Hello
wondered if you could help please?I’ve got myself into a tough situation which I know I’m responsible for and have made mistakes over the years I don’t think mentally I was in right place and have got £132,000 worth of debt that I’m now trying to pay off.I’ve gone through Stepchange to step up a DMP with them and making payments to companies I owe money too. Unfortunately some of these accounts are going to default and I’m worried about what’s going to happen next?
We will need a bit more information to be able to help, based on those figures you do not really have an issue with the repayments as you still have £2,892 left for everything else every month, which I am surprised your creditors are allowing you to cut your payments that low on that basis.Trainspotter90 said:Myself and and wife both work full time and bring home £6,200 month after tax in income! We are making payments to Stepchange of £2,754 month to pay off our debts for us! We have a mortgage which we are paying £554 month and no arrears from them!
That totals £132k of debt, give or take. Do you know what you have spent the money on? Have you cut your spending to a bare minimum now?Trainspotter90 said:Below are my debts and current balances- ZOPA BANK LOANS£18,130.29
- ZOPA BANK LOANS£17,663.13
- NOVUNA CONSUMER£13,816.64
- ZOPA BANK LOANS£13,120.72
- ZOPA BANK LOANS£12,618.47
- NOVUNA CONSUMER £12,151.63
- VIRGIN MONEY £10,457.95
- ZOPA BANK LOANS£9,281.49
- VIRGIN MONEY CRE£8,307.97
- MBNA Limited£5,290.15
- ZOPA BANK LOANS£4,727.08
- TSB BANK overdraft£2,246.41
- LINK FINANCIAL O...£1,779.92
- LINK FINANCIAL O...£1,674.54
- VIRGIN MONEY CRE...£1,552.39
You need to post a full SOA and we can help, but you also have to accept that with that level of debt and the fact that you own a property you are going to have to pay most of the debt back, the alternative is to sell your home and buy somewhere smaller, or rent.Trainspotter90 said:With me making payments to Stepchange I should be debt free by June 2028!Any advice on what I could possibly do next to help would be much appreciated, mentally I’m not in a great place been having panic attacks and struggling to sleep too!Thank you in advance and appreciate your help.
There is the theoretical option of a CCJ and a charging order, which secures the debt against the property, they are rare but I would not totally rule it out, especially as £75k of the debt is to one lender, Zopa.1 -
June 2028 is 36 months away. A repayment of £2754 per month amounts to £99144, someway short of the total amount owed!0
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I agree, if there is a lot of equity, creditors are less inclined to agree reduced settlements.
On the other hand the fact that the bulk of the debt is with Zopa suggests affordability claims on the most recent accounts might work. Not immediately but after appeal?If you've have not made a mistake, you've made nothing1 -
Sorry June 2029 my aplogises[Deleted User] said:June 2028 is 36 months away. A repayment of £2754 per month amounts to £99144, someway short of the total amount owed!0 -
CCJ what would happen with this would I lose my home?MattMattMattUK said:
Not directly, but I think you are misunderstanding. So if someone has no property and the debtor goes into a DMP the creditor will recognise that they have very little prospect of recovery if they push harder, the debtor could just go bankrupt. If the debtor has property then they are somewhat less free to just walk away from their debts, as such they not going to accept tiny DMP repayments, as evidenced by the OP's monthly figure representing around £100k of repayments over the period they mention.itsthelittlethings said:
I thought you could default and your property would not be affected?MattMattMattUK said:
If you are in a DMP you should have already let the accounts default, if not then you should stop paying until they do.Trainspotter90 said:Hello
wondered if you could help please?I’ve got myself into a tough situation which I know I’m responsible for and have made mistakes over the years I don’t think mentally I was in right place and have got £132,000 worth of debt that I’m now trying to pay off.I’ve gone through Stepchange to step up a DMP with them and making payments to companies I owe money too. Unfortunately some of these accounts are going to default and I’m worried about what’s going to happen next?
We will need a bit more information to be able to help, based on those figures you do not really have an issue with the repayments as you still have £2,892 left for everything else every month, which I am surprised your creditors are allowing you to cut your payments that low on that basis.Trainspotter90 said:Myself and and wife both work full time and bring home £6,200 month after tax in income! We are making payments to Stepchange of £2,754 month to pay off our debts for us! We have a mortgage which we are paying £554 month and no arrears from them!
That totals £132k of debt, give or take. Do you know what you have spent the money on? Have you cut your spending to a bare minimum now?Trainspotter90 said:Below are my debts and current balances- ZOPA BANK LOANS£18,130.29
- ZOPA BANK LOANS£17,663.13
- NOVUNA CONSUMER£13,816.64
- ZOPA BANK LOANS£13,120.72
- ZOPA BANK LOANS£12,618.47
- NOVUNA CONSUMER £12,151.63
- VIRGIN MONEY £10,457.95
- ZOPA BANK LOANS£9,281.49
- VIRGIN MONEY CRE£8,307.97
- MBNA Limited£5,290.15
- ZOPA BANK LOANS£4,727.08
- TSB BANK overdraft£2,246.41
- LINK FINANCIAL O...£1,779.92
- LINK FINANCIAL O...£1,674.54
- VIRGIN MONEY CRE...£1,552.39
You need to post a full SOA and we can help, but you also have to accept that with that level of debt and the fact that you own a property you are going to have to pay most of the debt back, the alternative is to sell your home and buy somewhere smaller, or rent.Trainspotter90 said:With me making payments to Stepchange I should be debt free by June 2028!Any advice on what I could possibly do next to help would be much appreciated, mentally I’m not in a great place been having panic attacks and struggling to sleep too!Thank you in advance and appreciate your help.
There is the theoretical option of a CCJ and a charging order, which secures the debt against the property, they are rare but I would not totally rule it out, especially as £75k of the debt is to one lender, Zopa.0 -
I thought I was doing the right thing by paying into a DMP? So you’re saying I should let them all default now? I have agreed with the companies to make payments via this plan which they have all accepted?MattMattMattUK said:
If you are in a DMP you should have already let the accounts default, if not then you should stop paying until they do.Trainspotter90 said:Hello
wondered if you could help please?I’ve got myself into a tough situation which I know I’m responsible for and have made mistakes over the years I don’t think mentally I was in right place and have got £132,000 worth of debt that I’m now trying to pay off.I’ve gone through Stepchange to step up a DMP with them and making payments to companies I owe money too. Unfortunately some of these accounts are going to default and I’m worried about what’s going to happen next?
We will need a bit more information to be able to help, based on those figures you do not really have an issue with the repayments as you still have £2,892 left for everything else every month, which I am surprised your creditors are allowing you to cut your payments that low on that basis.Trainspotter90 said:Myself and and wife both work full time and bring home £6,200 month after tax in income! We are making payments to Stepchange of £2,754 month to pay off our debts for us! We have a mortgage which we are paying £554 month and no arrears from them!
That totals £132k of debt, give or take. Do you know what you have spent the money on? Have you cut your spending to a bare minimum now? Is there some backstory to all the debt as unless there as a huge drop in income you might be able to argue affordability complaints against some (but not all) of the debt, though that might also depend on the contractual payments before you default and stop paying interest as at the moment you do have the headroom to pay all your debts.Trainspotter90 said:Below are my debts and current balances- ZOPA BANK LOANS£18,130.29
- ZOPA BANK LOANS£17,663.13
- NOVUNA CONSUMER£13,816.64
- ZOPA BANK LOANS£13,120.72
- ZOPA BANK LOANS£12,618.47
- NOVUNA CONSUMER £12,151.63
- VIRGIN MONEY £10,457.95
- ZOPA BANK LOANS£9,281.49
- VIRGIN MONEY CRE£8,307.97
- MBNA Limited£5,290.15
- ZOPA BANK LOANS£4,727.08
- TSB BANK overdraft£2,246.41
- LINK FINANCIAL O...£1,779.92
- LINK FINANCIAL O...£1,674.54
- VIRGIN MONEY CRE...£1,552.39
You need to post a full SOA and we can help, but you also have to accept that with that level of debt and the fact that you own a property you are going to have to pay most of the debt back, the alternative is to sell your home and buy somewhere smaller, or rent.Trainspotter90 said:With me making payments to Stepchange I should be debt free by June 2028!Any advice on what I could possibly do next to help would be much appreciated, mentally I’m not in a great place been having panic attacks and struggling to sleep too!Thank you in advance and appreciate your help.
in terms of why? I was the only one working at the time so buying house and unexpected bills didn’t help and needing a new car, but most of it was poor spending and then I’d take out a loan to pay the other one off or a credit card but then something would come up which I needed it for and just hit a rut and didn’t know how to get out0
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