Urgent Debt Advice

ManyWays

Callum1510 said:

Is there any benefit of me ringing each creditor before I default to make a payment arrangement direct? At a lesser amount? 

There is no benefit to ringing creditors and offering a lesser amount; its a hassle and some of yours may be quite unpleasant to deal with. You also want a default as soon as possible, and any payment arrangement may delay it.

For Drafty and possibly Ondal and Loans2Go you will need to cancel a CPA from your bank, not just a direct debit.

I suggest affordability complaints now against all your expensive lenders (fluro, loans 2 go, marbles and aqua (2 Newday brands so one complaint for both), mbna, drafty, my community finance), if you carry on paying the CU they cannot go for a CCJ. 

When the 8 payments to your partners loan are finished, you will also have a better idea of how many affordability complaints have been won/lost and will then be better placed to make a long term decision about whether you need the write off you could get from an IVA or not. 

Callum1510

RAS said:

We don't know how long ago the partner bought the property, nor what there income was at that time?

The partner has a baby so that income could be maternity pay, or part-time work.

It's not uncommon for couples to get into a complete mess with their first child because they haven't put together savings to cover the year or so before the second parent can go back to work without huge child care costs. It costly enough for over 12 month olds.

Add that the partner has been shielding the OP from the consequences of their poor credit record. Hopefully once that loan is paid off in 8 months, they can start to recover, if they prioritise and massively reduce the fun stuff they can't afford until the debt's cleared.

RAS said:

We don't know how long ago the partner bought the property, nor what there income was at that time?

The partner has a baby so that income could be maternity pay, or part-time work.

It's not uncommon for couples to get into a complete mess with their first child because they haven't put together savings to cover the year or so before the second parent can go back to work without huge child care costs. It costly enough for over 12 month olds.

Add that the partner has been shielding the OP from the consequences of their poor credit record. Hopefully once that loan is paid off in 8 months, they can start to recover, if they prioritise and massively reduce the fun stuff they can't afford until the debt's cleared.

Thanks for this. Yes exactly this. She is on maternity pay and due to go back to work in 2 months where she will then be on 2400 after tax herself. 

I still don’t no my best action to take right at this moment do I just default the loans and agree a repayment direct with each lender. Or do I get a IVA or DMP. 

Thanks 

RAS

Callum1510 said:

do I just default the loans and agree a repayment direct with each lender.

This is a DMP, whether you do it yourself or ask Stepchange or Payplan  or pay a company to do it.

Given your complex mixed finances, you need to do it yourself at least in the beginning as providers won't pay the loans in your partner's name.

Given the imminent return to work, you need to run another SOA based on your partner's higher income and add in the childcare costs.

And don't think about an IVA unless your partner has taken independent advice from someone who really knows about beneficial interest, as it is equity in her house that is at risk. And accept the car will be sold.

ManyWays

RAS said:

And don't think about an IVA unless your partner has taken independent advice from someone who really knows about beneficial interest, as it is equity in her house that is at risk. And accept the car will be sold.

I rarely suggest IVAs, there are usually better alternatives. But beneficial interest (if there is any) does NOT put his partners house at risk in an IVA, nor would the car have to be sold. Perhaps you are thinking of bankruptcy?  

kimwp

I'm still not sure the SOA is correct.

Are those figures the full household outgoings? ie the entire amount that you, your partner and children spend a month on food is £250?
Where is the £600 loan in your partner's name?
Why are you paying £300 for nursery if your partner is on mat leave?

Callum1510

Right update guys….i have managed to get money off family to pay the loan in Mrs name off so my next plan is to carry on paying the credit union loan off monthly.

i will let the rest of the debts default and once defaulted will contact each provider and arrange a monthly payment to them? 

Does this sound like a good idea? 

Thanks 

ManyWays

Do you need to repay this family loan? 

Callum1510

ManyWays said:

Do you need to repay this family loan? 

No I do not…so any advice fro
now… )

ManyWays

My suggestion is much the same as before. Small amendements below:

"There is no benefit to ringing creditors and offering a lesser amount; its a hassle and some of yours may be quite unpleasant to deal with. You also want a default as soon as possible, and any payment arrangement may delay it.

For Drafty and possibly Ondal and Loans2Go you will need to cancel a CPA from your bank, not just a direct debit.

I suggest affordability complaints now against all your expensive lenders (fluro, loans 2 go, marbles and aqua (2 Newday brands so one complaint for both), mbna, drafty, my community finance), if you carry on paying the CU they cannot go for a CCJ. 

When the 8 payments to your partners loan are finished, In 6-9 months your partner will be back at work and you will also have a better idea of how many affordability complaints have been won/lost and will then be better placed to make a long term decision about whether you need the write off you could get from an IVA or not. "

Callum1510

ManyWays said:

My suggestion is much the same as before. Small amendements below:

"There is no benefit to ringing creditors and offering a lesser amount; its a hassle and some of yours may be quite unpleasant to deal with. You also want a default as soon as possible, and any payment arrangement may delay it.

For Drafty and possibly Ondal and Loans2Go you will need to cancel a CPA from your bank, not just a direct debit.

I suggest affordability complaints now against all your expensive lenders (fluro, loans 2 go, marbles and aqua (2 Newday brands so one complaint for both), mbna, drafty, my community finance), if you carry on paying the CU they cannot go for a CCJ. 

When the 8 payments to your partners loan are finished, In 6-9 months your partner will be back at work and you will also have a better idea of how many affordability complaints have been won/lost and will then be better placed to make a long term decision about whether you need the write off you could get from an IVA or not. "

Thanks for the response. What shall I do in the 6-9 months just leave the loans then and let them just send me letters? Or as soon as I see a default on my credit search shall I contact them to make an offer or payment plan? 

Is there any benefit to setting up an IVA now? Also can I ask the lenders to put my account on hold if I submit an affordability complaint? 

Thankyou