Which Debt to Default on

Debtsolver33

Hello,

 I have 4 credit debts totalling £12k, 3 loans £18k. So I was made redundant earlier on the year and been behind the payments and recently secured a 6 month temp role on a much lesser pay.

The current arrears and minimum payment is equivalent to my monthly pay minus the basic expense like food, travel, utility/housing bills. So it would take me 2 years to clear it off under current situation.

2 years later I would have no saving/entertainment etc. Discussed about a debt management plan (DMP) companies said they will default my account.

Am in 2 minds whether I should default them or not. I don’t have saving to put down a deposit for a house and thinking of moving abroad for job opportunities (small chance).

So the question is how many should I default and which ones credit card or loans. I do intend to buy a house in near future and read mortgages are available if people have defaults but are never explicit on them, understand its case by case, dependant on age/value / type of debt in first place

fatbelly

Pop over to debt free wannabe and give us a statement of affairs

https://www.lemonfool.co.uk/financecalculators/soa.php

It sounds like you are borderline on having to default so let's see if you can move forward without having to

Debtsolver33

Went through the Statement of affairs and selected snowball,(Doesn't really reflext my current situation). With the results it shows  I have less than £200 left over each month and would take more than 2 years to pay off the full debt. So again I would like to know whats worst to default a credit card or loan, regardless of amount and have 2 loans from same bank whilst other creditor are from a single insituition

kimwp

If you post your SOA on the debt free forum, you'll get experienced people looking at the best option for your specific circumstance.

Debtsolver33

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Monthly Income Details[/b]

Monthly income after tax................ 2100

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

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

Other income............................ 0[b]

Total monthly income.................... 2100[/b][b]

Monthly Expense Details[/b]

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

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

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 0

Electricity............................. 0

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

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

Water rates............................. 0

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

Mobile phone............................ 28

TV Licence.............................. 0

Satellite/Cable TV...................... 0

Internet Services....................... 0

Groceries etc. ......................... 0

Clothing................................ 0

Petrol/diesel........................... 0

Road tax................................ 0

Car Insurance........................... 0

Car maintenance (including MOT)......... 0

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

Other travel............................ 30

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

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 0

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

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

Contents insurance...................... 0

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

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

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

Haircuts................................ 0

Entertainment........................... 0

Holiday................................. 0

Emergency fund.......................... 0[b]

Total monthly expenses.................. 58[/b]

[b]

Assets[/b]

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

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

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

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

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

Total Assets............................ 0[/b]

[b]

No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]

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

Marbles........................5529......160.......0

Capital........................1990......60........0

Barclays.......................1870......70........0

BBL............................19000.....410.......2.5

Santander......................5090......387.......25.9

Santander......................3800......293.......26.9

Tesco..........................10950.....400.......14.5

Halifax........................2675......60........25

Vanquis........................1450......40........0[b]

Total unsecured debts..........52354.....1880......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 2,100

Expenses (including HP & secured debts). 58

Available for debt repayments........... 2,042

Monthly UNsecured debt repayments....... 1,880[b]

Amount left after debt repayments....... 162[/b]

[b]Personal Balance Sheet Summary[/b]

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

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

Total Unsecured debt.................... -52,354[b]

Net Assets.............................. -52,354[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

Debtsolver33

This current income is based on a 6 month contract i have, between £700-1000 less than what I use to be on

Grumpelstiltskin

Debtsolver go over to the main section on here.

Debt-free wannabe — MoneySavingExpert Forum

Post your problem and SOA and you will get help.

sourcrates

Moved to DFW for you.

At first glance, it appears the SOA is far from complete?

ayupmeduck

Do you live at home, pay no bills or food, never go out or buy anything?

ManyWays

You cannot get through 2 years not paying for anything even if you are living at home.

what is your chance of getting a better paid job?

BBL - a bounce back loan? 

fatbelly

If you really have no housing costs or food costs and the vast majority of your income is available for servicing debts, then you can snowball, i.e. pay your contractual amounts and overpay the most expensive debt. But it's going to take a long time.