53k in debt and finding ways of helping

Stuckformoney86

Me (40) and my wife are currently 53k in debt, across 9 creditors.

we currently rent.

Paying all the monthly loans and min payments on credit cards and a catalogue leaves us very little money as soon as we get paid. Most food shopping will go on credit cards to make ends meet and I’ll also eat into my overdraft.

it’s a vicious circle and I’ve almost maxed out my 7 credit cards and it’s not sustainable.

I’ve done a budget on stepchange and the they recommend a DMP at £542 a month. which would take 8 years to pay off. I want my credit to eventually recover so I can start again after 6 years.

I’ve been reading more about letting debts default and then starting a DMP or even self manage. Then saving a emergency fund while waiting.

I’ve cancelled my direct debits to my loans and credit cards but have still been making payments.

I’m currently a few days late on one loan payment and need advice and what to do if I pay I’m not really in a position to buy food before going back into my overdraft.

I have already opened up a new bank account, I’m just scared to completely miss a payment as in my entire adult life I have never missed a payment.

sourcrates

Never prioritise unsecured, non essential debts over buying food, that is simply a no no.

What is it you are scared of? what do you think will happen?

These debts are termed "non priority" for good reason, if you can`t afford to service them, then don`t, stop paying, you must make 100% certain your essential bills are covered first, credit cards/loans are all non priority and can wait.

Debt collection takes a very long time, you can wait 6/8 months or longer before any will default.

During this time the worst that will happen is you will get letters and calls.

Time for you to re-take control now don`t you think?

Get your kitchen cupboards stocked up, get yourself squared away, save an emergency fund, and then in 6 months time see where you are, you have to stop the spiral of debt, and the best way to do that is to stop paying all your non essential bills until you have had time to take stock.

Stuckformoney86

I think what’s scaring me the most is my debt is my name but I’m down as living at my parents. So they will get the bombardment of mail and also scared of going to court or even CCJ.

I have some milestones coming up my sons 18th, my wife’s 40 which I can’t afford if I carry on with the payments but could with stopping payments.

I’m not really worried about my credit rating as I get any more credit.

All essential bills are always covered, I’ll need to talk to my partner about this, as it seems to be the only solution and we can work out the rest later.

sourcrates

Change your address, with your lenders, so you get the mail, easily sorted.

You don`t normally go to court for consumer debt, it all gets done by post and online these days, and its very unlikely any such action will be taken as a first response here, usually its much, much later on in the process if at all.

And you will have worked out a solution long before that becomes a possibility.

If its not sustainable, then common sense must be telling you things have to change, and the best way is to just stop all non essential payments until you have had the chance to take stock of your situation.

Do you own a house or are you renting?

Stuckformoney86

We rent but my name isn’t on it, my wife pays the rent.

Our debts

Cap 1 credit card £2268

HSBC credit card £4118

M+S credit card £2881

Nationwide credit card £4252

Virgin credit card £3314

Vanquis credit card £2696

Tesco credit card £3964

Tesco loan £3607

Tesco loan £2699

Nationwide Loan £2224

Updraft loan £10,510

Frasier plus £1764

Evlo loan £1661

Very £3687

Lowell £2953

Stuckformoney86

We have about 4K each month coming in and on those debts it’s around £1600 going out.

ManyWays

You can also look at making affordability complaints; these look like some likely candidates:

Vanquis credit card £2696
Updraft loan £10,510
Frasier plus £1764
Evlo loan £1661
Very £3687

The defaulted Lowell debt, what was that originally? You should probably ask lowell to produce the CCA agreement(s) for it.

Stuckformoney86

The lowell debt was another catalogue, Littlewoods, currently only paying £10 a month.

The Updraft loan was my loan in 2025 and the Evlo was my wife this year.

Very is also a catalogue.

Grumpelstiltskin

OK First thing you must do is stop panicking, it's only unsecured debt, if you stop paying all of it ( which is the second thing you must do ) nothing terrible will happen.

Start by reading this thread

In Debt and Wannabe Debt Free? first Steps to take are here, please read, then ask questions. — MoneySavingExpert Forums Make sure all your creditors have your correct address, no point in involving your parents and remember there will be a way out of this as long as you go about it the best way which we will advise you what that is when we have seen your honest SOA

Stuckformoney86

I have gone through all my lenders and changed my address so all letters will not be sent to my parents.

What would happen if I stopped paying everything except my Nationwide loan and credit card?

Although we have opened up new bank accounts already. My wife isn’t really keen on leaving Nationwide.

I can pay the loan off at Xmas with a bonus I get from work and use spare money to save and chip away at the credit card.

Stuckformoney86

I’m currently doing this on my phone,

Not sure about the APR’s just yet just wanted to get a basic SOA done.

[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......... 3
Number of cars owned.................... 0[b]

Monthly Income Details[/b]
Monthly income after tax................ 1996
Partners monthly income after tax....... 825
Benefits................................ 1388
Other income............................ 0[b]
Total monthly income.................... 4209[/b][b]

Monthly Expense Details[/b]
Mortgage................................ 0
Secured/HP loan repayments.............. 0
Rent.................................... 550
Management charge (leasehold property).. 0
Council tax............................. 160
Electricity............................. 250
Gas..................................... 50
Oil..................................... 0
Water rates............................. 50
Telephone (land line)................... 0
Mobile phone............................ 246
TV Licence.............................. 0
Satellite/Cable TV...................... 0
Internet Services....................... 70
Groceries etc. ......................... 1150
Clothing................................ 50
Petrol/diesel........................... 0
Road tax................................ 0
Car Insurance........................... 0
Car maintenance (including MOT)......... 0
Car parking............................. 0
Other travel............................ 388
Childcare/nursery....................... 0
Other child related expenses............ 0
Medical (prescriptions, dentist etc).... 0
Pet insurance/vet bills................. 22
Buildings insurance..................... 0
Contents insurance...................... 0
Life assurance ......................... 0
Other insurance......................... 0
Presents (birthday, christmas etc)...... 110
Haircuts................................ 50
Entertainment........................... 168
Holiday................................. 0
Emergency fund.......................... 0[b]
Total monthly expenses.................. 3314[/b]
[b]

Assets[/b]
Cash.................................... 0
House value (Gross)..................... 0
Shares and bonds........................ 0
Car(s).................................. 0
Other assets............................ 0[b]
Total Assets............................ 0[/b]
[b]
No Secured nor Hire Purchase Debts[/b]

[b]Unsecured Debts[/b]
Description....................Debt......Monthly...APR
Cap one........................2268......70........0
HSBC...........................4118......110.......0
M+S............................2881......80........0
Evlo loan .....................1661......110.......0
Frasier plus loan..............1764......55........0
Tesco loan.....................2699......100.......0
Lowell.........................2953......10........0
Updraft........................10510.....215.......0
Very...........................3687......90........0
Nationwide Loan................3607......212.......0
Tesco Loan.....................3607......155.......0
Tesco CC.......................3964......170.......0
Vanquis CC.....................2696......30........0
Virgin CC......................3314......50........0
Nationwide CC..................4252......160.......0[b]
Total unsecured debts..........53981.....1617......- [/b]

[b]
Monthly Budget Summary[/b]
Total monthly income.................... 4,209
Expenses (including HP & secured debts). 3,314
Available for debt repayments........... 895
Monthly UNsecured debt repayments....... 1,617[b]
Amount short for making debt repayments. -722[/b]

[b]Personal Balance Sheet Summary[/b]
Total assets (things you own)........... 0
Total HP & Secured debt................. -0
Total Unsecured debt.................... -53,981[b]
Net Assets.............................. -53,981[/b]

[i]Created using the SOA calculator at www.stoozing.com.
Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]