Writing to creditors individually

ManyWays

if he cant get the firm closed down, he must be able to stop working there and stop drawing a salary. And preferably find a more local PAYE job.

RAS

Agreed with ManyWays.

He needs to talk to Business Debtline as well as you. I don't know enough but I'd be very surprised if he can't just resign his directorship. 

Do get a new job first though, even local and on not much more than he's getting now. Then resign the directorship immediately after being paid. Cut the car costs, increase income and decrease stress.

Not least as running an insolvent company is a very risky idea if you are a director. Appreciate it's not going to make the main director happy. But your husband can't take the risk with his reputation or his equity.

Regarding the consumer debt. You both need bank accounts unrelated to the other consumer debt providers. Not a joint account. Get your salary paid into your account. Don't allow hubbie to pay his salary into the existing joint account.

You are going to stop paying any of the consumer debts. They'll be attempt calls, text and emails but you can write to them telling them under GDPR to remove those contact details. They must write.

It won't halt the interest immediately, but once the debt defaults, charges and interest cease. Meantime getting your form completed could stop interest earlier and even get accounts closed on MH grounds.

That's stage one, then look at affordability claims. But MH claim first.

The difficult bits are that you need to reduce your spends enough to start saving a little bit for emergencies. 

Do you have any stuff your could car-boot, put on vinted? Even if you wait 'til the spring for the car boot?

Pollyanna79

I wasn't going to stop paying until I get an agreement about freezing interest, but I am not sure how long the dr will take. So
1. wait for dr to reply with my form (i will chase after it's been a week)
2. write to creditors and ask them to freeze interest/write off debt
3. start paying lower amounts
When you say look at affordability claims, do you mean contacting creditors to say they shouldn't have offered me credit? I did think of doing that but the trouble is, I would have put husband's earnings at 2k however it kept coming in 50% less, so it wasn't really a full picture they had (as each month I thought it would go back to normal amount)
Thank you so much for your help

RAS

Pollyanna79 said:

I wasn't going to stop paying until I get an agreement about freezing interest, but I am not sure how long the dr will take.

Assume you are not sure how long the doctor will take complete the MH form?

That's irrelevant, right now.

Right now, you don't have enough coming in this month to pay any money towards your debts. You don't even have enough to cover your current family spends.

Stop paying all unsecured debt. All you are doing is increasing your indebtedness when you revert to the cards to cover the lack of income at the end of the month.

So stop, and at least live off this month's income instead of the cards. 

Do you have anything which can be sold to scrap together £500 for emergency funds? Because you need that cushion.

P.S. Come back when the doctor has completed the form.

ManyWays

I wasn't going to stop paying until I get an agreement about freezing interest, but I am not sure how long the dr will take
many creditors will not take you asking for a freeze seriously until you have missed payments

sourcrates

You must understand that if you can`t afford your credit payments, you should stop paying them, and only concentrate on essential spending, that`s just plain common sense really.

If you are going to ask a lender to write off a debt or to freeze interest, you must be able to show good reason why they should, that means a recent history of non payment is an essential part of that, plus you can`t afford to waste money paying non essential debts right now anyway.

If you talk the talk, you must also walk the walk.

Pollyanna79

sorry I wrote a comment a couple of days ago but it doesn't seem to have saved. I've just always thought it best to pay things, so kept borrowing more. yes I can see that is stupid, but part of my problems is I am heavily medicated also suffer with derealisation so none of this feels real, literally. I assume I don't default on things like electricity, gas, but I do default on credit cards etc?

Pollyanna79

but some of them have 0% balance transfers for some of the balance (not the whole balance). I think I have to keep paying them or I lose the 0%?

ManyWays

It doesnt matter if you "lose" the 0% on some of the balance if you then get 0% permanently on the whole balance  because you have defaulted. 

I assume I don't default on things like electricity, gas,
yes! Paying rent/mortgage, energy bills, council tax, mobile, broadband, car finance etc are all priorities which you do not want to get into arrears on.

We are talking about not paying "consumer debt" such as unsecured loans, credit cards, catalogues, BNPL, Paypal etc. Overdrafts too - this means moving to a different bank account. 

Pollyanna79

Ok, I have attached the cards, seriously still default on ones with 0%? and I don't think I should default on Barclays due to having a bank account with them? (I have opened another safe account)