We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Debt & Defaulting. The Process...
Genie10
Posts: 9 Forumite
Hi all,
Been a lurker here for sometime. Great forum with the most useful advice!
My story is similar to many others...
Over several years I have got in to debt, consolidated. Got in more debt consolidated. Rinse & repeat...
Its now come to the point I can't cover repayments.
I am hoping to follow the advice i've read on here re defaulting.
I would really like advice on whether i'm doing the right thing at the right time. I know there are lots of threads on this but slightly different advice on when to do certain things addles my brain! Way back I saw a great thread from Sourcrates that was almost a step by step guide. Obviously being the technophobe I am I've never seen it again!
This week I have cancelled my direct debits for all loan & credit card payments. I have completed a SOA which I can attach if required. I am intending to write to some of the loan companies re irresponsible lending but am unsure when to do this as I think i'm correct in saying that I should have no communication with the companies now until the loans have defaulted?
Any advice would be gratefully received or a pointer in the direction of the elusive thread mentioned above would be appreciated.
Many thanks
Been a lurker here for sometime. Great forum with the most useful advice!
My story is similar to many others...
Over several years I have got in to debt, consolidated. Got in more debt consolidated. Rinse & repeat...
Its now come to the point I can't cover repayments.
I am hoping to follow the advice i've read on here re defaulting.
I would really like advice on whether i'm doing the right thing at the right time. I know there are lots of threads on this but slightly different advice on when to do certain things addles my brain! Way back I saw a great thread from Sourcrates that was almost a step by step guide. Obviously being the technophobe I am I've never seen it again!
This week I have cancelled my direct debits for all loan & credit card payments. I have completed a SOA which I can attach if required. I am intending to write to some of the loan companies re irresponsible lending but am unsure when to do this as I think i'm correct in saying that I should have no communication with the companies now until the loans have defaulted?
Any advice would be gratefully received or a pointer in the direction of the elusive thread mentioned above would be appreciated.
Many thanks
0
Comments
-
Yes this question is often asked on here.
Its pretty simple really, you just stop paying your unsecured, non essential credit debts...........that`s essentially it really.
However, if you are planning on making affordability complaints, I would get that under way now.
So stop paying, save an emergency fund, get the affordability complaints sent in, debt camel provides good advice on how to do that.I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it 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.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter0 -
Hi Genie10,
Is this the thread you were looking for? https://forums.moneysavingexpert.com/discussion/6496941/in-debt-and-wannabe-debt-free-first-steps-to-take-are-here-please-read-then-ask-questions#latest
It's by Kimwp not Sourcrates but I think it could be the the step by step one you mean. Well done for posting and good luck.0 -
Thats great!sourcrates said:Yes this question is often asked on here.
Its pretty simple really, you just stop paying your unsecured, non essential credit debts...........that`s essentially it really.
However, if you are planning on making affordability complaints, I would get that under way now.
So stop paying, save an emergency fund, get the affordability complaints sent in, debt camel provides good advice on how to do that.
I will get the affordability complaints sent off next week.
Many thanks 0 -
That isn't the one I was referring too but very useful nonetheless!Wanna_Bee_Free said:Hi Genie10,
Is this the thread you were looking for? https://forums.moneysavingexpert.com/discussion/6496941/in-debt-and-wannabe-debt-free-first-steps-to-take-are-here-please-read-then-ask-questions#latest
It's by Kimwp not Sourcrates but I think it could be the the step by step one you mean. Well done for posting and good luck.
Many thanks 2 -
Re the affordability complaint would you include bank statements & a credit report on the email to the creditors or do I just need those things for the Ombudsman?
Many thanks 0 -
The details on how to make the complaint are nicely outlined on Debt Camel to get companies to consider if they were guilty of irresponsible lending.
How to get refunds from catalogues and credit cards · Debt CamelI’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.
Click on this link for a Statement of Accounts that can be posted on the DebtFree Wannabe board: https://lemonfool.co.uk/financecalculators/soa.php
Check your state pension on: Check your State Pension forecast - GOV.UK
"Never retract, never explain, never apologise; get things done and let them howl.” Nellie McClung
⭐️🏅😇🏅🏅2 -
And don't necessarily expect to win based on a simple complaint.
A lot of people have referred the rejection to the ombudsman and succeeded at that stage.
And the SOA would be useful. It's almost frightening how many initial ones don't make adequate provision for predictable but not monthly expenditure.
Obviously many folk on benefits don't have the luxury but if your income allows, much better to make monthly provision for less regular demands than be in a panic when something "unexpected" happens and you have to reduce or halt agreed payments.If you've have not made a mistake, you've made nothing1 -
I have read that it often needs to go to the Ombudsman & I will follow that route. Do you think it's worthwhile Including my bank statements & credit report to the creditors?RAS said:And don't necessarily expect to win based on a simple complaint.
A lot of people have referred the rejection to the ombudsman and succeeded at that stage.
And the SOA would be useful. It's almost frightening how many initial ones don't make adequate provision for predictable but not monthly expenditure.
Obviously many folk on benefits don't have the luxury but if your income allows, much better to make monthly provision for less regular demands than be in a panic when something "unexpected" happens and you have to reduce or halt agreed payments.
Thanks so much for your advice 0 -
[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]Household Information[/b]Number of adults in household........... 2Number of children in household......... 0Number of cars owned.................... 1[b]Monthly Income Details[/b]Monthly income after tax................ 3074Partners monthly income after tax....... 0Benefits................................ 0Other income............................ 0[b]Total monthly income.................... 3074[/b][b]Monthly Expense Details[/b]Mortgage................................ 0Secured/HP loan repayments.............. 343Rent.................................... 460Management charge (leasehold property).. 0Council tax............................. 94.5Electricity............................. 62.5Gas..................................... 0Oil..................................... 0Water rates............................. 10.15Telephone (land line)................... 0Mobile phone............................ 53.99TV Licence.............................. 7.5Satellite/Cable TV...................... 18.98Internet Services....................... 22.34Groceries etc. ......................... 200Clothing................................ 20Petrol/diesel........................... 280Road tax................................ 16Car Insurance........................... 104Car maintenance (including MOT)......... 100Car parking............................. 0Other travel............................ 0Childcare/nursery....................... 0Other child related expenses............ 0Medical (prescriptions, dentist etc).... 22.15Pet insurance/vet bills................. 0Buildings insurance..................... 0Contents insurance...................... 5Life assurance ......................... 0Other insurance......................... 0Presents (birthday, christmas etc)...... 50Haircuts................................ 10Entertainment........................... 100Holiday................................. 50Emergency fund.......................... 50[b]Total monthly expenses.................. 2080.11[/b][b]Assets[/b]Cash.................................... 0House value (Gross)..................... 0Shares and bonds........................ 0Car(s).................................. 10000Other assets............................ 0[b]Total Assets............................ 10000[/b][b]Secured & HP Debts[/b]Description....................Debt......Monthly...APRMortgage...................... 0........(0)........0Hire Purchase (HP) debt ...... 10659....(343)......0[b]Total secured & HP debts...... 10659.....-.........- [/b][b]Unsecured Debts[/b]Description....................Debt......Monthly...APRVirgin Credit Card.............1055......59.1......0Halifax Loan...................1150......153.5.....0PayPal Loan....................1168......42.95.....0Zopa Bank Loans................13437.....227.7.....0Castle Community Loan..........10371.....254.......0Plend Loan.....................10000.....264.6.....0Abound Loan....................8320......255.......0Novuna Loan....................4602......132.3.....0Fluid Credit Card..............2034......20.34.....0Updraft Loan...................11197.....325.7.....0Updraft Loan...................3921......138.6.....0Updraft Loan...................1597......151.1.....0[b]0
-
I live with my partner & we share the household bills 50/50 so they are halved on my SOA. He earns less than me & is no position to help me out of my mess.
[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]Household Information[/b]Number of adults in household........... 2Number of children in household......... 0Number of cars owned.................... 1[b]Monthly Income Details[/b]Monthly income after tax................ 3074Partners monthly income after tax....... 0Benefits................................ 0Other income............................ 0[b]Total monthly income.................... 3074[/b][b]Monthly Expense Details[/b]Mortgage................................ 0Secured/HP loan repayments.............. 343Rent.................................... 460Management charge (leasehold property).. 0Council tax............................. 94.5Electricity............................. 62.5Gas..................................... 0Oil..................................... 0Water rates............................. 10.15Telephone (land line)................... 0Mobile phone............................ 53.99TV Licence.............................. 7.5Satellite/Cable TV...................... 18.98Internet Services....................... 22.34Groceries etc. ......................... 200Clothing................................ 20Petrol/diesel........................... 280Road tax................................ 16Car Insurance........................... 104Car maintenance (including MOT)......... 100Car parking............................. 0Other travel............................ 0Childcare/nursery....................... 0Other child related expenses............ 0Medical (prescriptions, dentist etc).... 22.15Pet insurance/vet bills................. 0Buildings insurance..................... 0Contents insurance...................... 5Life assurance ......................... 0Other insurance......................... 0Presents (birthday, christmas etc)...... 50Haircuts................................ 10Entertainment........................... 100Holiday................................. 50Emergency fund.......................... 50[b]Total monthly expenses.................. 2080.11[/b][b]Assets[/b]Cash.................................... 0House value (Gross)..................... 0Shares and bonds........................ 0Car(s).................................. 10000Other assets............................ 0[b]Total Assets............................ 10000[/b][b]Secured & HP Debts[/b]Description....................Debt......Monthly...APRMortgage...................... 0........(0)........0Hire Purchase (HP) debt ...... 10659....(343)......0[b]Total secured & HP debts...... 10659.....-.........- [/b][b]Unsecured Debts[/b]Description....................Debt......Monthly...APRVirgin Credit Card.............1055......59.1......0Halifax Loan...................1150......153.5.....0PayPal Loan....................1168......42.95.....0Zopa Bank Loans................13437.....227.7.....0Castle Community Loan..........10371.....254.......0Plend Loan.....................10000.....264.6.....0Abound Loan....................8320......255.......0Novuna Loan....................4602......132.3.....0Fluid Credit Card..............2034......20.34.....0Updraft Loan...................11197.....325.7.....0Updraft Loan...................3921......138.6.....0Updraft Loan...................1597......151.1.....0[b]0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.7K Banking & Borrowing
- 253.4K Reduce Debt & Boost Income
- 454K Spending & Discounts
- 244.6K Work, Benefits & Business
- 600K Mortgages, Homes & Bills
- 177.3K Life & Family
- 258.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards