Persistent debt need help

19Tadpole76

I'm not sure what to do  , I've been irresponsible and have got Credit cards and catalogues naxed to the limit and im spending £675 a month which is over half my part time income each month on repayments.  I'm not making a dent in any of the credit card balances as the little bit of freed up money I end up spending on essentials like groceries or electric during thr month   .my husband is self employed and is a sole trader and he tends to have the same half a dozen customers . We bought him a van on finance and 12 months in the engines needs replacing which we can't afford . We both feel like we are working to pay debts I'm 49 he's 52 and in the building trade so his work has taken its wear and tear on him .I would just like to stop the interest and reduce the outgoings and have some money to put by . 

sourcrates

The best advice is given usually after seeing a competed SOA that shows all your income/ expenditure etc.

But, basic rule of thumb, if you can`t afford it, don`t pay it, catalogues and credit cards are both non essential spending, so if they are unaffordable, you just don`t pay them.

You stop all non essential credit payments, take stock, save your self a good emergency fund, then when your ready, start a debt management plan, which will be the most likely way to tackle your debt based on the breif info already given.

There is no reason to struggle, if you can`t afford it, you just stop paying it.

Brie

When doing a SOA (link on my signature below) try to base the numbers on the last 2 - 3 months worth of bank/card statements.  That way it's accurate rather than guessing.  

Well done for facing the problem and looking for a way to solve it.

19Tadpole76

I've done the soa , and it's not showing a lot left over each month and certainly nothing for emergencies.  I'm on top of all my repayments.  Is there a way to get them to stop adding interest and freeze accounts/ close them .so i can just pay them off possibly 

ManyWays

Can we see the SOA? At the moment its like asking the doctor to suggest what you should do by just saying you have bad stomach ache.

sourcrates

19Tadpole76 said:

I've done the soa , and it's not showing a lot left over each month and certainly nothing for emergencies.  I'm on top of all my repayments.  Is there a way to get them to stop adding interest and freeze accounts/ close them .so i can just pay them off possibly 

It would be helpful to see it, that way advice can be tailored to your situation.

However in general, to stop interest being charged, you must first allow the account to default, as until that point both you and the lender are bound by the terms of your credit agreement.

Defaults are obtained by non payment, it takes a good few months and involves a process of statutory letters until a point is reached and the lender defaults the account for non payment.

Then the debt will either be sold or assigned to a debt collector, payment arrangements can then be made, and no more interest or charges can be added.

This will result in negative information added to your credit file, so you must be certain your strategy will work, which is why an SOA is so very important as there are various debt solutions available, but all are circumstance specific.

RAS

First off, this really shows up the risks of having no emergency funds. And of the mix of self-employment and paid work. Your husband's business need separate accounts with an emergency fund for repairs/equipment and materials. All too often cash flow is subsidised by domestic income when problems arise.

Consumer creditors have to halt interest and fees when they registered a default. The fastest way to get that is to stop paying. As sourcrates wrote, their computer will run through a gamut of letters suggesting things that could happen, but don't explain they are possible after the default is issued and then unlikely. And can be stalled by making small affordable payments.

Whilst waiting for the defaults, you need to save everything you can onto a domestic emergency fund so that the boiler failing isn't another disaster.

Yours is a complex situation so would benefit from sharing the SOA. 

enthusiasticsaver

The only way they will stop interest on the debts is for you to default on them then at a later stage do a DMP as advised further up the thread.  This will ruin your credit rating but further debt should not even be considered anyway as it will make matters worse. Put up the soa, default on the debts, save for emergencies then either contact stepchange to sort out a DMP or so a self managed one. 

19Tadpole76

Il try and upload it . I'm not great at computer stuff 😕 

19Tadpole76

This is the calculations. I've also included the finance on my husbands van thats just sat there with no working engine .he also owes £870 in unpaid tax that ive not included. We dont go out or socialise.  He likes a beer, and we both smoke, which is for me my is my pleasure .. obviously if he has bo work or off suck or at christmas tume he will take a week iff the figures will be less 

19Tadpole76

* off sick  * no work * Christmas time