StepChange v Self-Managed... £85k+ Debt

ManyWays

Your SOA - zero for transport costs, so neither of you ever takes a cab?
400 for groceries and 40 for clothes are low.
Are all these debts in your name - because your partner could presumably opt for insolvency?
It looks as though you may have some good affordability complaints, updraft, 118, Natwest loans, CU loans, Tesco loan, Fluid, Barclays and AO cards. 
 

Avante_2

ManyWays said:

Your SOA - zero for transport costs, so neither of you ever takes a cab?
400 for groceries and 40 for clothes are low.
Are all these debts in your name - because your partner could presumably opt for insolvency?
It looks as though you may have some good affordability complaints, updraft, 118, Natwest loans, CU loans, Tesco loan, Fluid, Barclays and AO cards. 
 

Hello, partner is currently on extended maternity leave, I am covering everything except car costs.

I agree 400 groceries is low, more like 600. All new baby costs are covered by the 200 childcare and 200 baby spend, we have not bought clothes in a long time, infact we are selling via Vinted for extra cash and to declutter.

All debts are in my sole name, partner is already on a DMP.

Thank you regarding affordability complaints, this is my next priority once I have resolved Credit Union x2.

Grumpelstiltskin

When you do set up payments with the Credit Unions make them Standing Orders then you are in control of the payments, as you have seen Direct Debits can be a problem.

Grumpelstiltskin

You and your partner do need a very serious discussion regarding spending, if she is already on a DMP ( with a charity I hope ) it does look like both of you have the wrong attitude towards spending.

Forget keeping up with the Jones, forget buying brands that are always advertised on TV ( you are paying for these ads as well as the product )

Have you found Olio? Community food shops? Charity Shops? there  are many ways to reduce spending, and the very old fashioned way, if you can't pay for it cash you can't afford it.

Avante_2

Grumpelstiltskin said:

When you do set up payments with the Credit Unions make them Standing Orders then you are in control of the payments, as you have seen Direct Debits can be a problem.

Yes, good point. I just called 118 Money and cancelled CPA on my debit card, no direct debits in place now.

I have revised my SOA, please could you review?

I am nervous about contacting the Credit Union, I feel I need to put together a pro-rata creditor offer. I have listed all my debts too incase you can guide me here?

Revised SOA - note I will look to reduce non-essential spending: haircuts/hobbies/gifts to free up more money. I have assumed full repayments to credit union until I have made contact/pro-rated payments.

Total	3,735
Salary	3735

Essential

Rent	925
Council Tax	149
TV Licence	15
House Insurance	10
Electricity	260
Baby Items	400
Food	600
Virgin	55
Mobile	85
Water	69
Credit Union Loans x2	558.63

Savings
Emergency Fund       25 (in reality it will be whatever I am not paying the unsecured creditors e.g. 298.37pm)

Non-essential
Hobbies                    55
Clothing                    60
Toiletries                   20
Hairdressing             60
Gifts                          50
Gym                          40


Debts

	Creditor	Debt Type	Monthly Payment	Balance	Interest rate
Allow to default	Fluid	Credit Card	£181.53	£4,471.10
Allow to default	Natwest	Loan	£298.36	£9,769.00
Allow to default	Natwest	Loan	£301.02	£9,279.77
Allow to default	Very	Store Card	£85.70	£1,785.74	63.90%
Allow to default	Barclays	Credit Card	£150.00	£5,365
Allow to default	Updraft	Loan	£205.04	£9,735	23.90%
Allow to default	Money 118	Loan	£167.33	£4,852.00
Allow to default	Tesco	Loan	£181.11	£8,874.00
Allow to default	Novuna	Loan	£100.80	£1,814.00
Allow to default	AO	Store Card	£197.29	£3,945.70
Allow to default	Jaja	Credit Card	£26.20	£891.95
Allow to default	Credit Spring	Loan	£97.33	£166
Allow to default	Klarna	Store Card	£54.13	£1,944.16
Allow to default	Creation	Store Card	£20.80	£145.60
Allow to default	Payment Assist	Loan	£18.72	£299.58
Treat as secured	Credit Union 1	Loan	£387.95	£16,124.27	20.58%
Treat as secured	Credit Union 2	Loan	£170.68	£4,998.62	41.78%
	Total		£2,643.99	£84,461.55

Grumpelstiltskin

Don't be nervous, they would much prefer you are in touch with them although it does go against our do not contact your creditors. If you are in a position where a CCJ would be a problem for your job you will have to keep them onside.

Just remember you are in control not your creditors.

Avante_2

Update: 10/11/25

Spoke with the Credit Union, all action is on hold until 14/12/25 when Breathing Space ends. I told them my situation and they asked me to call back at the end of Breathing Space to discuss whether an arrangement would be affordable to clear the arrears (1 months currently) and maintain monthly payment going forward.

I think the best outcome is I clear arrears on the x2 Credit Union loans and maintain payments going forward, one loan is over 36 months and the other over 60 months so would be be repaid whilst I am dealing with defaults/full and finals with the other unsecured debts (once they default).

The Credit Union were very friendly and explained they would not issue a notice of default until day 75 of arrears if there is no arrangement in place.

ManyWays

How large are your partner's debts in their DMP, who is the DMP with, how much are they paying a month and how long has this been running? 

Insolvency for them could be a better option, so they can cover more of their fair share of costs when they are back at work, letting you clear yours faster

Avante_2

ManyWays said:

How large are your partner's debts in their DMP, who is the DMP with, how much are they paying a month and how long has this been running? 

Insolvency for them could be a better option, so they can cover more of their fair share of costs when they are back at work, letting you clear yours faster

She entered DMP with StepChange 2 years ago debts of c.£20k. This has been on hold/reduced whilst on maternity.

In reality, she could ask family and they would clear the debt altogether, but I think it's good she repays it as it may change her attitude toward debt in the future.

I agree with what has been said above, we both need a serious discussion regarding spending and keeping up appearances.

When she returns to full time employment, it will ease financial pressure on me as she will contribute to food/household bills.

Avante_2

Grumpelstiltskin said:

Don't be nervous, they would much prefer you are in touch with them although it does go against our do not contact your creditors. If you are in a position where a CCJ would be a problem for your job you will have to keep them onside.

Just remember you are in control not your creditors.

Thank you for your reassuring words.

CCJ would be a major problem, so I think my best case scenario is maintain Credit Union x2 until repaid and allow all other unsecured to default and settle later down the line.