SOA questions

ArtyJ931

I

https://forums.moneysavingexpert.com/discussion/comment/81922425#Comment_81922425

I haven't been doing the emergency fund - I've been putting emergencies onto credit cards - so this is my SOA of what I want to be doing to avoid increasing credit. Have I done that wrong?

What would be an acceptable amount for holiday and entertainment per month for 2 adults? The other adult in this is my disabled adult son with no income other than higher level PIP.

And an acceptable amount to spend on Christmas and birthdays? I have a partner, 4 children and 2 grandchildren (if that changes anything?)

It's so difficult to figure this stuff out! Thanks so much for your help :)

SPM87

what do you mean acceptable? acceptable to whom? to me there is no way you are going to pay this off without spending a huge amount of your one life on this planet living in misery due to being allowed to borrow more than what is healthy (the banks know exactly what they are doing too)

I am unsure of what you are asking at the moment

sourcrates

You can`t live like a pauper, then again over spending is what got you into this mess, you need to find a good balance, cut out unnecessary spending by all means, but you do need a life as well.

If you were not a homeowner, I would say pay nothing for now, and take your chances with them ever getting legal with you, save a good settlement fund, let the debts default and get sold on, and try and settle for as little as possible further down the line, the trouble is your house, with an asset like that, and debts of 50k, a charging order is a real possibility.

But as the house is jointly owned, that would only be a restriction, so the strategy is still a possibility.

SpireCaptain

https://forums.moneysavingexpert.com/discussion/comment/81923030#Comment_81923030

Sorry to jump in but whilst talking about Charging orders, may I ask a quick one.

I'm thinking the only way to carry on is by selling my jointly owned house to my family (so my ex can have her money back) and I rent off my family for the foreseeable (with a family buy to let) so I can finally enter a DMP.

BUT I have a rental house with a BTL mortgage- could creditors put a charging order on that? Equity is only circa 30k and my unsecured debts are +£60k.

ArtyJ931

https://forums.moneysavingexpert.com/discussion/comment/81922862#Comment_81922862

Just asking for feedback on my SOA and whether a DMP is a good option

ArtyJ931

https://forums.moneysavingexpert.com/discussion/comment/81923030#Comment_81923030

Thank you sourcrates. Is a self managed DMP not a possibility? I was hoping to repay what I could afford with a view to building up a fund for lower settlements even if that is years down the line. I didn't realise this wasn't an option for homeowners. :(

SpireCaptain

https://forums.moneysavingexpert.com/discussion/comment/81923178#Comment_81923178

I think they mean you're in control now, not the creditors. You decide how much they get from now on. Decide on a plan i.e. saving up for full and final offers in a few years time etc.

Sourcrates also means you shouldn't have to live on rice and beans and for sake living a life that's enjoyable just to pay back unsecured creditors that have probably had their money back 10 time saver with interest and fees over the years etc.

If you default and then the debt gets sold on the purchaser my only pay 20-40p in the pound for your account balance.

Don't cut your cloth too much. Save for Birthdays and holidays etc.

ArtyJ931

https://forums.moneysavingexpert.com/discussion/comment/81923198#Comment_81923198

Thank you :)

sourcrates

As per the above, debt management is always an option, but there are others as I mentioned.

Debt purchasing companies work on a numbers basis, they send various letters in the hope a certain percentage will respond and set up payments, not every one will, those that don’t have a 12/15% chance of being taken to court, so around 78% of sold on debts never see enforcement action at all.

You can employ a number of different strategies, it depends what works best for you, but being a homeowner you just need to stay one step ahead of the game to avoid things getting too complicated and stressful.

ArtyJ931

https://forums.moneysavingexpert.com/discussion/comment/81923214#Comment_81923214

I've spent the last few days making new spreadsheets and plans and writing lists of what I need to do so I'll hopefully stay one step ahead. If not or it feels overwhelming I will go to stepchange for advice.

Thank you so much for your help