Sitting at a crossroads!

momentoftruth · 23 September at 6:30AM

Hi all,
I've been paying off debts through step change since July 24, I've recently greatly reduced my DMP payments from August 25 to £58 per month (was paying £800 for 10 months but that was crippling me and left me with zero wiggle room for if things went wrong then £400 when reviewed after leaving my 2nd job).

I'm due to receive a large amount of money about 17k next year (gift from parents) and reduced my payments hoping it would make getting more reasonable settlement offers, how long did it take for those who have had settlement offers to come through as I've had none yet offering a discount. What do you recommend as a starting point and am I better to hold off for a while and keep making just token payments?

I'm considering asking for CCAs but as the loans/CCs were all in the last 3-4 years I imagine they'll be able to come up with them. AA might be one as its passed though the post office, link and then to antelope.

I've also contacted the Financial Ombudsman about 3 of the debts (zopa, AA and MBNA) as I feel I shouldn't have been lent them due to my already high level of debt but not sure if this will be effective. Has anyone had any luck with this route?

My debts left are;
Zopa loans - 15k (two loans - 10k & 5k)
Halifax (now with Link) - 7k
AA loans (now with antelope)- 7k
Tesco cc - 5K
Nationwide cc - 5k
Mbna cc (now with link) - 4k

Thanks for the support, this forum is amazing 👏

momentoftruth · 23 September at 6:34AM

Forgot to add, Nationwide, zopa and Tesco haven't yet sold the debt on so am I better waiting until this happens or are they likely just to hold onto the debt?

Emmia · 23 September at 6:34AM

If you fill in a Statement of Affairs (SOA) you'll get some assistance with finding areas where your spending could be potentially reduced to give you more financial space.

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

Fill it in, and then paste it in the MSE format.

momentoftruth · 23 September at 6:41AM

I hope I've done this right!

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

Monthly Income Details[/b]

Monthly income after tax................ 2600

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

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

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

Total monthly income.................... 2600[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 500

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

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

Management charge (leasehold property).. 0

Council tax............................. 100

Electricity............................. 75

Gas..................................... 75

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

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

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

Mobile phone............................ 50

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

Satellite/Cable TV...................... 30

Internet Services....................... 40

Groceries etc. ......................... 200

Clothing................................ 50

Petrol/diesel........................... 200

Road tax................................ 15

Car Insurance........................... 60

Car maintenance (including MOT)......... 50

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

Other travel............................ 0

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

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

Medical (prescriptions, dentist etc).... 5

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

Buildings insurance..................... 20

Contents insurance...................... 5

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

Other insurance......................... 15

Presents (birthday, christmas etc)...... 30

Haircuts................................ 5

Entertainment........................... 50

Holiday................................. 50

Emergency fund.......................... 50[b]

Total monthly expenses.................. 1675[/b]

[b]

Assets[/b]

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

House value (Gross)..................... 120000

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

Car(s).................................. 1000

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

Total Assets............................ 121000[/b]

[b]

Secured & HP Debts[/b]

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

Mortgage...................... 12000....(500)......3[b]

Total secured & HP debts...... 12000.....-.........- [/b]

[b]Unsecured Debts[/b]

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

DMP............................43000.....58........0[b]

Total unsecured debts..........43000.....58........- [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 2,600

Expenses (including HP & secured debts). 1,675

Available for debt repayments........... 925

Monthly UNsecured debt repayments....... 58[b]

Amount left after debt repayments....... 867[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 121,000

Total HP & Secured debt................. -12,000

Total Unsecured debt.................... -43,000[b]

Net Assets.............................. 66,000[/b]

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

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

momentoftruth · 23 September at 6:43AM

momentoftruth said:

I hope I've done this right!

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

Monthly Income Details[/b]
Monthly income after tax................ 2600
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0[b]
Total monthly income.................... 2600[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 500
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 75
Gas..................................... 75
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 50
TV Licence.............................. 0
Satellite/Cable TV...................... 30
Internet Services....................... 40
Groceries etc. ......................... 200
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 15
Car Insurance........................... 60
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 5
Life assurance ......................... 0
Other insurance......................... 15
Presents (birthday, christmas etc)...... 30
Haircuts................................ 5
Entertainment........................... 50
Holiday................................. 50
Emergency fund.......................... 50[b]
Total monthly expenses.................. 1675[/b]
[b]

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0[b]
Total Assets............................ 121000[/b]
[b]

Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 12000....(500)......3[b]
Total secured & HP debts...... 12000.....-.........- [/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
DMP............................43000.....58........0[b]
Total unsecured debts..........43000.....58........- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 2,600
Expenses (including HP & secured debts). 1,675
Available for debt repayments........... 925
Monthly UNsecured debt repayments....... 58[b]
Amount left after debt repayments....... 867[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 121,000
Total HP & Secured debt................. -12,000
Total Unsecured debt.................... -43,000[b]
Net Assets.............................. 66,000[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.
Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

My fixed rate mortgage also ends soon so I'm looking at repayments of approx £750 per month instead

Emmia · 23 September at 6:50AM

momentoftruth said:

momentoftruth said:

I hope I've done this right!

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

Monthly Income Details[/b]
Monthly income after tax................ 2600
Partners monthly income after tax....... 0
Benefits................................ 0
Other income............................ 0[b]
Total monthly income.................... 2600[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 500
Secured/HP loan repayments.............. 0
Rent.................................... 0
Management charge (leasehold property).. 0
Council tax............................. 100
Electricity............................. 75
Gas..................................... 75
Oil..................................... 0
Water rates............................. 0
Telephone (land line)................... 0
Mobile phone............................ 50
TV Licence.............................. 0
Satellite/Cable TV...................... 30
Internet Services....................... 40
Groceries etc. ......................... 200
Clothing................................ 50
Petrol/diesel........................... 200
Road tax................................ 15
Car Insurance........................... 60
Car maintenance (including MOT)......... 50
Car parking............................. 0
Other travel............................ 0
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 5
Pet insurance/vet bills................. 0
Buildings insurance..................... 20
Contents insurance...................... 5
Life assurance ......................... 0
Other insurance......................... 15
Presents (birthday, christmas etc)...... 30
Haircuts................................ 5
Entertainment........................... 50
Holiday................................. 50
Emergency fund.......................... 50[b]
Total monthly expenses.................. 1675[/b]
[b]

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 120000
Shares and bonds........................ 0
Car(s).................................. 1000
Other assets............................ 0[b]
Total Assets............................ 121000[/b]
[b]

Secured & HP Debts[/b]
Description....................Debt......Monthly...APR
Mortgage...................... 12000....(500)......3[b]
Total secured & HP debts...... 12000.....-.........- [/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
DMP............................43000.....58........0[b]
Total unsecured debts..........43000.....58........- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 2,600
Expenses (including HP & secured debts). 1,675
Available for debt repayments........... 925
Monthly UNsecured debt repayments....... 58[b]
Amount left after debt repayments....... 867[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 121,000
Total HP & Secured debt................. -12,000
Total Unsecured debt.................... -43,000[b]
Net Assets.............................. 66,000[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.
Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

My fixed rate mortgage also ends soon so I'm looking at repayments of approx £750 per month instead

These all look like very round numbers - you may want to go through your bank / card statements over the last year to get more accurate figures.

Some thoughts
You have satellite/cable... But no TV licence? Is the mobile a contract with a handset being paid off, or are you out of contact so could switch to a cheaper SIM only deal.

You've got £50 a month of emergency fund, but no savings?

You allegedly have £925 left over every month - where is that money going? If you threw a lot of that at debt payments you'd have this cracked in a few years.

tigergambit · 23 September at 8:06AM

momentoftruth said:

Hi all,
I've been paying off debts through step change since July 24, I've recently greatly reduced my DMP payments from August 25 to £58 per month (was paying £800 for 10 months but that was crippling me and left me with zero wiggle room for if things went wrong then £400 when reviewed after leaving my 2nd job).

I'm due to receive a large amount of money about 17k next year (gift from parents) and reduced my payments hoping it would make getting more reasonable settlement offers, how long did it take for those who have had settlement offers to come through as I've had none yet offering a discount. What do you recommend as a starting point and am I better to hold off for a while and keep making just token payments?

I'm considering asking for CCAs but as the loans/CCs were all in the last 3-4 years I imagine they'll be able to come up with them. AA might be one as its passed though the post office, link and then to antelope.

I've also contacted the Financial Ombudsman about 3 of the debts (zopa, AA and MBNA) as I feel I shouldn't have been lent them due to my already high level of debt but not sure if this will be effective. Has anyone had any luck with this route?

My debts left are;
Zopa loans - 15k (two loans - 10k & 5k)
Halifax (now with Link) - 7k
AA loans (now with antelope)- 7k
Tesco cc - 5K
Nationwide cc - 5k
Mbna cc (now with link) - 4k

Thanks for the support, this forum is amazing 👏

I think this is a reasonable approach. I know it seems like an eternity but you haven't actually been in the DMP for long. 13 months in fact. Keep pursuing the FO complaints and wait until they get resolved. Do not give debtors your SOA as it stands. You need it to tell them that you have almost nothing to spare. Share that version.

£58 per month amongst eight creditors will concentrate their minds and shouldn't put you in hardship. Think of preparing an offer for January 2027, just before end of tax year. Make sure you start low, around 20%. MBNA will be likely to accept. TESCO won't - they appear to keep in house and play hardball in my experience so just reduce your payments further.

ayupmeduck · 23 September at 2:02PM

where's the supposed £867 left each month, where is that going? You should be able to pay a larger DMP each month is that is really free and not spent elsewhere

RAS · 23 September at 3:02PM

Another one to note that the nice round numbers suggest the SOA is based largely on what you think or would like to be the sums.

Get out the last 6 months' statements and allocate every item to one of the budget heads. Please. Even the mortgage. They can hide the lunch-time sarnie, the latte habit or the car repair costs that are higher than the budget.

By ignoring the calculations for your actual monthly debt payment and entering the DMP value, you've left a lot of confused people who think you have a lot of excess.

Reference the mortgage, you go into your current provider's web-site 3-6 months before the end of the fix and select the best new fix you can find. Do not try to re-mortgage as that will be very costly.

momentoftruth · 23 September at 5:27PM

ayupmeduck said:

where's the supposed £867 left each month, where is that going? You should be able to pay a larger DMP each month is that is really free and not spent elsewhere

The £800 is depending on how many bank shifts I can pick up as this varies month to month. I'm currently putting this away, part for car repairs that are needed before my MOT (roughly £1k) and then the rest was being put away to try and get more money for settlement offers next year to hopefully get the debt completely cleared as I had read that if I'm paying larger amounts then the companies are less likely to offer me decent settlement offers.

momentoftruth · 23 September at 5:32PM

RAS said:

Another one to note that the nice round numbers suggest the SOA is based largely on what you think or would like to be the sums.

Get out the last 6 months' statements and allocate every item to one of the budget heads. Please. Even the mortgage. They can hide the lunch-time sarnie, the latte habit or the car repair costs that are higher than the budget.

By ignoring the calculations for your actual monthly debt payment and entering the DMP value, you've left a lot of confused people who think you have a lot of excess.

Reference the mortgage, you go into your current provider's web-site 3-6 months before the end of the fix and select the best new fix you can find. Do not try to re-mortgage as that will be very costly.

I will admit this was done quickly and roughly before I went to work today, I had sent step change a proper one but didn't have time to go through and copy each bit over so just went with rough estimates for this.
I had been paying £800 to stepchange monthly but dropped this down to see if I could get better settlement offers but not sure if that's the right thing to do if it's going to take a long time

Sitting at a crossroads!

Comments

Confirm your email address to Create Threads and Reply

🚀 Getting Started

Categories

Is this how you want to be seen?

Get our FREE Weekly email full of deals & guides - and it’s spam-free