Self-managed payment plan - SoA check needed first please

exponential

https://forums.moneysavingexpert.com/discussion/comment/82183394#Comment_82183394

God you're really schooling me here and I appreciate it very much. I never even considered it because we've had that prime membership running for as long as I can remember.

You get to so used to memberships that you simply forget the membership exists and pay it without question.

Silly of me really. One to look into for sure.

exponential

https://forums.moneysavingexpert.com/discussion/comment/82183405#Comment_82183405

Hi. What does BBL mean? Sorry if that sounds a bit dumb....

Sherlock33

https://forums.moneysavingexpert.com/discussion/comment/82183455#Comment_82183455

No problem. I went through a similar process of culling expenses when I had to stop working due to health problems. You quickly become good at getting the best value out of everything!

exponential

https://forums.moneysavingexpert.com/discussion/comment/82183489#Comment_82183489

I'm sorry to hear about your health problems! I hope youre ok!

Really appreciate the input. I've made a right pigs-ear of explaining myself in previous posts I've made which hasn't gone down well really but that's my own fault for thinking I can just waft through things without much thought.

I'm wrong on all counts when it comes to my debt problems but as long as you learn from it and better yourself along the way, I feel I'm making some progress.

SpireCaptain

https://forums.moneysavingexpert.com/discussion/comment/82183457#Comment_82183457

Sorry, my mistake, I could've sworn your avatar was familiar as a chap who was struggling with his photo studio costs etc and they had a Bounce Back Loan they were defaulting on but looking back on your profile I see no mention. Apologies. I follow that many threads on here with great interest and inspiration. Cheering you on from the sidelines on your journey 👌

exponential

Can I just ask.

Despite my SoA not being absolutely perfect, I would still like to press ahead with sending letters to my 3 creditors offering the £100 per month proportionally spread between them all based on the level of debt.
Is that the correct way to do it?

For example, I have pro-rata'd the £100 between them as follows:

Lowell get 65%
Link get 6%
MCS (Cabot) get 29%

This is purely based on the level of debt each company have purchased.
The letter clearly explains my situation openly between the 3 creditors who get the exact same letter but altered to reflect the payments offered.
In the letter, I have outlined each reference number, original creditor and amount which is openly shared between them all so they all know my position and the level of debt held between the three of them.

Is this the right way to go about it?

Altior

It's not personal from my perspective, we are anonymous anyway. I am autistic though, so one might say that means direct on occasion.

My typical approach when contributing on here is to approach scenarios raised as if it was me facing them.

As I alluded to in my post, I felt like the problem was being tackled inside out. You would be far better off going down your list of expenses and working out how can you minimise each line. Compromises are needed if you want to hold off legal action. That means making a reasonable and serious offer to your creditors (in my opinion).

exponential

https://forums.moneysavingexpert.com/discussion/comment/82184613#Comment_82184613

I prefer direct if I honest, no point in skirt around an issue so I take what you've said on board.

I'm just worried about overstretching myself for the first offer to them so I can properly gauge the impact it will have.
If, in 6 months (as I've proposed to be the review stage), I can safely handle the £100 per month, I will revise the SoA and offer more on each round.
As mentioned by @Sherlock33, there are plenty of ways to cut existing costs so I can look into that during the 1st 6-month phase.

As the 3 creditors have been patient with me for the last 12 months, I don't want to push my luck by asking for more time.
I just want to make an initial offer to them to start the process. They've been receiving nothing from me in all this time so I really feel like they will accept my offer in the way I have structurere it.

Altior

https://forums.moneysavingexpert.com/discussion/comment/82184646#Comment_82184646

My opinion again, but to me that's why your offer needs to look serious. If you view it from their perspective. You have a good income and also property equity, so they are unlikely to accept a token gesture after waiting so long.

I don't mean scaling down to the actual metaphorical bone, but that would be my starting point. See what the genuine scope is, then maybe add in some wiggle room for yourself. But, I feel like you should create a budget where it's only covering your priority payments to begin with, and identify what you actually have to work with. From that, create a workable budget that includes a legitimate offer.

Smudgeismydog

I think you confirmed your debts have defaulted and you are going into the DMP on a self managed basis.

You are in control, so pay what is affordable

Have you built up an emergency fund?
Have you considered how the debt accumulated and taken steps to address this to ensure you understand the changes you need to make to ensure you don’t go backwards?

As others have noted, you appear to have plenty of scope to trim outgoings and get this debt paid off