Unsecured debt help - I feel helpless

Grumpelstiltskin

2 Adults in the house? Your partner? If so why do they have no income?

RubyGown795

Grumpelstiltskin said:

2 Adults in the house? Your partner? If so why do they have no income?

I did not include my partners income as they aren’t joint debts - the mortgage payment, gas and electric, food etc is just my share of the bill. 

Sorry if I am doing this wrong I have not done it before x 

Grumpelstiltskin

The problem is if you are paying half is your share correct, I mean do you both earn the same amount or does one of you earn much more than the other?

Are  all the debts in your sole name? If so why?

RubyGown795

Grumpelstiltskin said:

The problem is if you are paying half is your share correct, I mean do you both earn the same amount or does one of you earn much more than the other?

Are  all the debts in your sole name? If so why?

We both earn around 2490/2500 a month. Everything is split down the middle in terms of household bills, mortgage, utilities and food etc.

the debts all are in my sole name, I took these out on my own. My partner had an accident in 2022 and my debt snowballing started then when he was off work for a year and I had to cover most of the bills, food and mortgage. Since then it’s just went on. To be honest I just got into a bad place with money in terms of robbing Peter to pay Paul and completely living beyond my means. I have buried my head in the sand over the last year

Smudgeismydog

Could you pay less towards household costs to free up more to go towards debts, as you note your debt stems from taking on a greater share of costs in 2022?

RubyGown795

Smudgeismydog said:

Could you pay less towards household costs to free up more to go towards debts, as you note your debt stems from taking on a greater share of costs in 2022?

Unfortunately not. My partner is in his own debt issues that he is in the process of sorting.

RubyGown795

So out of the 3x unsecured loans I have all have now defaulted.

-Zopa: repayment of £40 a month 
-Castle Community Bank: repayment of £40 a month 
-Tesco Bank (Moorcroft now dealing with this debt): repayment of £40 a month 

all of which I have been advised will be reviewed every 3 months and if my I&E stay the same they said the payments can remain the same 

I’m now just waiting for my credit cards (Barclaycard & Aqua) to default and then I am going to offer them a repayment plan of £25-40 each per month 

The old NatWest account with an overdraft of an average of £350 on I am waiting for a letter to come with access information on so I can get into this account and sort this out. 

Feeling a little bit more in control and much less anxious… 

Question - my partner is in the final stages of a medical negligence case and is possibly going to be in recipient of some compensation in December. He owes me around £6200, in terms of an offer of a reduced amount to clear the debt how does this happen? 

ManyWays

I think this is very early for settlement offers. You will get lower offers accepted by waiting and hoping the debts will be sold to debt collectors. 

Have you looked at affordability complaints against the loans? 

RAS

Put the money into an emergency fund, in an instant access ISA. If you are in receipt of means tested benefits, you need to look at the impact of savings over £6k . It might be better to clear a small overdraft?

You've already experienced the chaos caused by one lost income. You also have a house that will need repair and maintenance.

I'd add that you really need to devise a joint SOA, even if only for your own purposes. Unless your partner's debts are equal or greater than yours, they should be making a contribution to clearing your debts.

After all, the debts originate from covering debt attributable to your partner's injury.

RubyGown795

ManyWays said:

I think this is very early for settlement offers. You will get lower offers accepted by waiting and hoping the debts will be sold to debt collectors. 

Have you looked at affordability complaints against the loans? 

I’ve been reading another helpful thread on here and will hold out for settlement offers. 

Yes I’ve made an affordability complaint to Tesco and Zopa. I’m going to make one to castle community bank also.