Unsecured debt help - I feel helpless

RubyGown795

Hi everyone, 

I have been reading a few thread on here for a while for some support and advice and feel like I need to post my own issues to get some more personalised advice. 

Long story short I have around £43,500 of unsecured debt. A mixture of unsecured loans and credit cards that I physically cannot pay. 

Zopa Loan - £9284
-The Zopa loan states on the account it has now defaulted and I am currently paying £40 a month to these directly, this debt has not been sold on - is this still a default?

Tesco Loan - £9960.92
-Now defaulted and sold to Moorcroft who I have submitted a request of a payment of £40 a month for repayments and am awaiting response) 

Castle community bank loan - £8946 
-Not yet defaulted but did receive a letter last week saying I had 14 days to repay the full amount or this would be taken further 

Barclaycard CC - £8885.67 

Aqua CC - £5448.92 

 NatWest overdraft (Roughly around ?£400/450 I have lost my log in details for this account so waiting for a letter to come to reset this and confirm) 

I am a homeowner with a mortgage and we also have a secured load against our property of which we are up to date with mortgage and secured loan payments. Remortgage is due soon but we are planning on sticking with the same mortgage company, will this be ok?

I stopped paying my unsecured debt in around May 2025 and have been following the advice I have read on different posts on here about allowing them to default and do a self managed DMP. 

Just wondering if there is anything else I should be doing or does anyone know how long some of these above creditors take to default? 

Many thanks x

Grumpelstiltskin

Castle Community Bank, I guess this is a credit union?

If so you need to  keep on top of that as Credit Unions tend to jump straight into court action.

To see your full situation you need to complete a honest SOA and post on here, we can't give you the best help until we see that.

ManyWays

Remortgage is due soon but we are planning on sticking with the same mortgage company, will this be ok?
Yes if you only want a new fix, not to borrow more

Just wondering if there is anything else I should be doing 
Have you looked at making affordability complaints? All those debts look like possible candidates, except for the small Natwest overdraft. 

Now defaulted and sold to Moorcroft
Moorcroft will be collecting on behalf of Tesco, they haven't bought the debt.

Have you managed to start saving an emergency fund since May? I agree with Grump that we can say much more if we see a full SOA. 

fatbelly

Is your main banking with Natwest or somewhere else?

The above posters are correct. Credit Union loans are not CCA debts so there is no point waiting for a default. If your plan is to make payments then you may as well start.

There is no downside to affordability complaints

RubyGown795

Grumpelstiltskin said:

Castle Community Bank, I guess this is a credit union?

If so you need to  keep on top of that as Credit Unions tend to jump straight into court action.

To see your full situation you need to complete a honest SOA and post on here, we can't give you the best help until we see that.

Oh no - I must sound so stupid but I didn’t not realise this. I have been ignoring their calls and letters. I’ll call them today and advise of my circumstances, will they allow me to set up a reduced payment plan? 

Will post my SOA asap 

RubyGown795

fatbelly said:

Is your main banking with Natwest or somewhere else?

The above posters are correct. Credit Union loans are not CCA debts so there is no point waiting for a default. If your plan is to make payments then you may as well start.

There is no downside to affordability complaints

My main bank is with Monzo - I get paid into there and have all my main DD’s that come out of there. 

I do have a Barclays joint account with my partner where our mortgage and secured debt payment come out of. 

I am going to contact the credit union today and discuss repayment options with them. I will also make affordability complaints. 

fatbelly

The Barclays account is probably ok. Technically Barclaycard could use the right of setoff to take money from that account but I have never known them do so.

If you wanted to be ultrasafe, either just use Monzo for everything or open a new account somewhere

RubyGown795

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

Household Information[/b]

Number of adults in household........... 2

Number of children in household......... 

Number of cars owned.................... 2[b]

Monthly Income Details[/b]

Monthly income after tax................ 2489

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

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

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

Total monthly income.................... 2489[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 516

Secured/HP loan repayments.............. 174

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

Management charge (leasehold property).. 0

Council tax............................. 90

Electricity............................. 60

Gas..................................... 60

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

Water rates............................. 61

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

Mobile phone............................ 15

TV Licence.............................. 10

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

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

Groceries etc. ......................... 250

Clothing................................ 30

Petrol/diesel........................... 95

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

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

Car maintenance (including MOT)......... 10

Car parking............................. 26

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

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

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

Medical (prescriptions, dentist etc).... 75

Pet insurance/vet bills................. 35

Buildings insurance..................... 25

Contents insurance...................... 25

Life assurance ......................... 4

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

Presents (birthday, christmas etc)...... 35

Haircuts................................ 20

Entertainment........................... 40

Holiday................................. 40

Emergency fund.......................... 40[b]

Total monthly expenses.................. 1751[/b]

[b]

Assets[/b]

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

House value (Gross)..................... 225000

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

Car(s).................................. 9000

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

Total Assets............................ 234000[/b]

[b]

Secured & HP Debts[/b]

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

Mortgage...................... 188500...(516)......0

Secured Debt.................. 0........(174)......0[b]

Total secured & HP debts...... 188500....-.........-   [/b]

[b]Unsecured Debts[/b]

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

Mam (loan payment).............20000.....515.......0

Aqua credit card ..............5448......40........0

Barclaycard....................8885......40........0

CCB Loan ......................8946......40........0

Zopa Loan......................9284......40........0

Tesco Loan.....................9960......40........0[b]

Total unsecured debts..........62523.....715.......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 2,489

Expenses (including HP & secured debts). 1,751

Available for debt repayments........... 738

Monthly UNsecured debt repayments....... 715[b]

Amount left after debt repayments....... 23[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 234,000

Total HP & Secured debt................. -188,500

Total Unsecured debt.................... -62,523[b]

Net Assets.............................. -17,023[/b]

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

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

RubyGown795

Just for reference 

the minimum payments for the unsecured debt is going to be what I offer the creditors when they default - some are yet to get to this point 


the loan payment for mam is unfortunately due to a loan my mam took out for me last year to help me get out a rough patch with money, I have to pay this as she could not afford to not have this

I have contacted Castle Community Bank today via the telephone who have advised me the loan has defaulted with them and asked me to complete a income and expenditure form and then offer a repayment plan, of which I am going to offer £40 a month 

RubyGown795

fatbelly said:

The Barclays account is probably ok. Technically Barclaycard could use the right of setoff to take money from that account but I have never known them do so.

If you wanted to be ultrasafe, either just use Monzo for everything or open a new account somewhere

I get paid into my Monzo account and just transfer the amount for mortgage and secured loan into the Barclays account.. is this okay? X 

RubyGown795

Just had email confirmation from Moorcroft on behalf of Tesco they have accepted the £40 month repayment - DD will start 1st December