Please help £75k debt!

Lighthouse81

So Monzo have been in touch and have given me the total to pay ( with interest frozen and includes no further interest) with the interest to date refunded off the capital but have told me to freeze the interest and take interest paid off I need to arrange a repayment plan, I told them my original monthly payment wasn’t affordable and they want to basically get a budget sheet from them, should I speak to them to arrange this and get a repayment plan to something I can afford or should I just ignore it and continue to wait for the loan to default and make contact with ever I need to then? 

wolveswolves29

It wont default if you have won a affordability complaint so just set up payment plan to what you can afford or lower and pay of the ones that aren’t mate

Lighthouse81

Hi everyone, just wanted to give an update I am 100 days gamble free and getting help with Epic Restart recommended by another poster, I feel like a weight has been lifted in regards to debt and for anyone else who is reading these posts and unsure if to just stop paying in fear of what may happen don’t be, apart from a few phone calls/ letters it has been mainly quiet for me, have managed to save some emergency fund and now just waiting for the defaults to start so I can sort out payments. I have had an affordability complaint upheld with Monzo, and am currently awaiting for them to send me statements of my flex account as they deemed this affordable to which I disagreed and am going to escalate to the odbudsman. 

I just received this letter- do I need to take action with this or just wait still? 

Important – You should read this carefully

Default Notice served under section 87(1) of the Consumer Credit Act 1974

This notice relates to an Interest Free Loan account (“the Agreement”) provided by Ikano Bank AB (publ).

Provision of Agreement breached:

Under clause 3 of the Agreement, you agreed to pay each monthly payment due under the Agreement in full and on the repayment date.

Nature of Breach:

You have failed to pay the monthly payments.

Action required:

You must pay the full amount of arrears that you owe, which is £300.00, by 27 December 2025 to remedy this breach.

It can take up to 5 working days for payments to clear and be applied to your account.

Account balance: £784.50

Arrears amount: £300.00

If the arrears are paid before the date shown, the action described below will not be taken.

If you do not take the required action before the date shown, the following may occur:

Further Action:

• The agreement may be terminated
• Your account may be closed
• Your full balance may become due and payable immediately

sourcrates

It is what it says on the tin, a default notice issued under sec 87(1) CCA.

This is what you have been waiting for, and for now you do nothing.

You wait until after the deadline, then you should get correspondence from whoever is appointed to chase the debt. It may be sold, it may be assigned to a debt collector, or they may still chase it in-house, they have various options to choose from, but either way, you will be written too.

So take notice of letters that come next, if unsure, ask on here, remember, you will go through a similar process with every account you have going forward.

You should also keep checking your credit file to see if the default has been registered, as a "default notice", and a "default on your credit file", are two very separate things, the former must come before the latter, but the latter may take time to be registered.

Andyjflet

Lighthouse81 said:

Thanks RAS, this is something we have just done for the first time in 15 years sat and gone through finances because I’ve always been so defensive, I like the idea of weekly statements and monthly meetings.

So with the finances above, Loan 2, Monzo Flex 2 and the sofa are in her name everything else is in my name. So if we are to default should we have seperate bank accounts, or should we keep paying her debts ( I was going to make an affordability complaint with Monzo for her too)  and default just mine?

When I cleared my debt I did it just before I met my current partner of now 6 years, I folllowed Dave Ramsey and cleared £65k in 5 years. 

If you are having meetings and discussions, make it fun, bottle of wine, take away etc so that its something positive to look forward to and sets the tone. 

Lighthouse81

Evening everyone, just an update, I am doing well, still not gambling, life and relationships have improved and don’t feel overwhelmed by my finances. I have won an affordability complaint and also one that wasn’t upheld taken to the odbudsman to see how I fair there. I have also put an affordability complaint with a previous bank, where I had a loan and overdraft go to collections that was over six years ago but doing a bit of research think I may have have half a chance as due to stopping gambling and trying to sort my finances I can show that I only recently became aware that I can complain.

I have had two notices of default, one from Ikano and one from Tesco, the Ikano one is now showing on my credit report, they said to me that I will receive communication from whoever is dealing with the debt, may be internally or a third party. Just want to know what can I expect to happen next, will I just get a letter saying this is what you owe, and this is how to pay, then I just set up a standing order for what I can afford to that bank? How do I decided what I should pay towards each debt based on what I can afford?

Any further advice would be appreciated! Thanks