Self-managed payment plan - SoA check needed first please

exponential

https://forums.moneysavingexpert.com/discussion/comment/82184669#Comment_82184669

Again, I do agree with you here and there is certainly scope for improvement but, as I'm self-employed, I have to be really cautious with how I proceed.
There are no guarantees anymore like there was in the old days, and work can be taken away just as easily as it is gained.

Like I said, I will look into scrapping things that are not critical and renew the SoA accordingly.

Appreciate your input

exponential

Hi. Yes, the debts defaulted around 18 months ago to my memory so this contact with the debt purchasers has been going on for some time.

We have a very small fund available for emergencies although if the boiler was to break, we would struggle without help from family.

The problems all started over the lock-down period with a massive drop in income and loss of work.
This snowballed really badly and instead of looking for advice on how to deal with it all, I buried my head in the sand and began to borrow from Peter to pay Paul.
Fast-forward a few years later and it all came crashing down around me.
Had to reveal the extent of the issue to my wife which was a hellish experience, one which I never wish to have to go through again.

Since the beginning of the lockdowns, we have never recovered from the financial impact really.

I just focus on bringing enough into the house to pay the bills and that's that.
We don't drive fancy cars, haven't had a holiday in god knows how long and live day to day but for me, as long as my 2 kids and wife are ok, I'm ok.

I used to stress about this none stop but what are they going to do other than threaten a CCJ or charging order. I don't care as long as my family are happy and healthy.

Smudgeismydog

Ok, so you need to concentrate on building a bigger emergency fund, this will also give you more peace of mind, and remember, this pot is there for emergencies only, not for dipping into.

I appreciate you say you live ‘hand to mouth’ and ‘day to day’, but like other posters have pointed out, the following can be trimmed back;

• Groceries and household expenses; do you meal plan and batch cook? Shop with a list? Can you reduce brands? Change supermarket? This can be reduced
• Electricity looks high; some providers offer reduced rate periods, or lower nighttime rates, could you utilise something like this?
• Water is very high and should be investigated
• Communication outgoings could be a lot lower, as an example, we pay £28.99 for our broadband (no landline)
• Satellite/cable, should also be reviewed and cut back, these are ‘wants’ and not ‘needs’

I am absolutely not suggesting you review the above for any reason other than getting your expenses under control, to allow you to live within your means, save for an emergency fund and get these debts paid off.

exponential

https://forums.moneysavingexpert.com/discussion/comment/82184787#Comment_82184787

Ok, I will do this for sure!

My wife does all the shopping and most certainly works to a list.
We regularly shop at Aldi and Lidl as we find the prices at ASDA and Tesco to be rather high!
I'll show my wife this message as I don't to be the one to suggest she batch cooks as I value my life although she currently does this this for her dad who suffers with dementia (she's his carer but cannot claim carers allowance as we have been told this will directly affect his benefit by the benefits office).

We are on a pre-payment meter so would have to have a smart meter fitted to be eligible for any price plan changes.

Water is an ongoing issue since the meter was changed a couple of months ago.

I'm tied in with BT for communications at an eye-watering £55 a month just for broadband alone!!
This contract ends in 3 months though thank god.

Agree on the satellite for sure. We are not good in that area.
Life for us is so crappy that it feels horrible to have to cut back but I understand it's a necessary thing.

I will post a copy of the letter I have wrote to one of my creditors regarding an offer to see if it is formatted in correct way (if you don't mind taking a look)

exponential

Screenshot 2026-10-28 203128.png

Screenshot 2026-10-28 203146.png

See attached, snips of the letter I intend to send to the 3 creditors.
This is just an example of course and does not contain any information which might compromise my identity, location or actual debt figures.

@Sourcrates Is the content and presentation acceptable?

13thlegion

Just pay them via a standing order. There's no need to communicate with them.

exponential

https://forums.moneysavingexpert.com/discussion/comment/82184989#Comment_82184989

Fair point but I have been communicating since the original credit accounts defaulted so I am just continuing on from that really.
I would rather keep communications open as it satisfies me that I know their intentions and keeps me in control. I do see what you're saying though

RAS

You need to build your emergency fund if you are a home owner and self employed. If life happens you need to afford to pay the mortgage for a couple of months and to replace the boiler.

I've not been able to read your notes but I'd suggest a couple of things.

You need to communicate the minimum necessary to keep the creditors on side.

You need to budget as a family for lean months. And to have a budget for reasonable living.

Do you have proper budgeting pots for things like clothes, Christmas and birthdays, car repairs etc? If not create a budgeting/savings account. In lean months you may not fund them fully or at all. The next decent month you top them up. You can even save for a holiday. So you are not panicking about uniforms, MOT or Christmas.

I would explain to the creditors that you are self-employed and cannot predict income month by month, so you pay regularly and make occasional top-ups when income allows.

exponential

https://forums.moneysavingexpert.com/discussion/comment/82185089#Comment_82185089

Hi RAS.

Thank you, excellent advice!

Like I said, I have wafted over all of this to keep me sane but you're right, if I don't have a fixed plan in place, I will likely end up falling on my own sword.

I will make an amendment to the creditor letters stressing the nature of my income as I have sometimes found that although I draw a wage, I sometime have to juggle between my personal and business account to keep a level keel and end up putting some back.
As the business progresses, I'm finding I'm not having to do that as much anymore which is why I'm confident I can sustain a regular monthly payment to them.

Smudgeismydog

I appreciate you want to keep your creditors in the loop, but this isn’t strictly necessary, and as others have posted, if you do want to do this, then its better to keep it brief.

Right now your main focus is building your emergency fund, trimming costs and setting yourself a realistic budget, that you can stick to.