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  • FIRST POST
    • wheely
    • By wheely 10th Jan 18, 2:24 PM
    • 54Posts
    • 36Thanks
    wheely
    Day 1
    • #1
    • 10th Jan 18, 2:24 PM
    Day 1 10th Jan 18 at 2:24 PM
    Good afternoon,

    I have to admit to myself that I am in trouble. I cannot talk to family or friends, as I am just to embarrassed. I have not been able to talk to my wife about it, as it will cause unbearable pressure on our relationship.

    I have approximately £36k of debt, accumulated over a decade of keeping my head above water and living beyond my means.

    The debt is spread over 5 credit cards, with varying rates of interest, and no hope of transferring to lower interest/0% cards.

    I have an outstanding mortgage of £100k on a £170k house, and I cannot afford to lose the house.

    I am in the fortunate position of having a good job, that is as secure as any job can be nowadays.

    My income is around £2600/month, plus a contribution to bills of £450 from my wife. My outgoings are around £2700 before living/fuel costs of around £400.

    I am not in arrears and I can meet the minimum payments, (just) but this weighs round my neck every day.

    I recognise I need some lifestyle changes and can cut back on non-essentials, and will take Martin's advice and set a day aside to do a Money Makeover.

    I just wanted somewhere to turn and someone to talk to.

    Thanks
Page 3
    • enthusiasticsaver
    • By enthusiasticsaver 7th Feb 18, 10:28 AM
    • 5,695 Posts
    • 11,249 Thanks
    enthusiasticsaver
    The interest on those cards is almost £7000 each year. So out of the £12500 roughly repayments you are making only £5500 is reducing the debt. That is a sign of how urgent this now is.

    Cut the cards up if you have not already. I do not think there is loads to cut in your soa but you seem to have made a start in cutting back so that is good. Whilst you do not want to talk to your wife about this I think you have to as really you cannot afford holidays etc until this is lower which will impact on her too. Does she have debt?

    If you cannot get any 0% deals I would contact your credit card companies direct and ask if they have any deals open to you. Getting the interest rate down would be the single most effective thing you can do to sort this out.

    Make sure you continue to save for emergencies as I do not think you should use credit at all and certainly not put it on your mortgage. You need to start living within your means and paying the debt down.

    Having a secure job has lulled you into a false sense of security and you have allowed the debt to continue rising. At some point you will want to retire or you may get sick and lose pay and this large debt will impact even more then. It may also impact on remortgage deals.
    Debt free and mortgage free and early retiree. Living the dream

    I'm a Board Guide on the Debt-Free Wannabe, Mortgages, Banking and Budgeting boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Any views are mine and not the official line of moneysavingexpert.com. Pease remember, board guides don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com
    • Bedsit Bob
    • By Bedsit Bob 7th Feb 18, 8:38 PM
    • 9,980 Posts
    • 52,411 Thanks
    Bedsit Bob
    I have to say, I disagree with Exbankclerk.

    I don't believe it's a good idea, to turn unsecured debt into secured debt.
    My job is Top Secret. Even I don't know what I'm doing.

    Amount I have so far denied the BBC - £1308

    Who are you to question why your god doesn't want me to believe in him?
    • fatbelly
    • By fatbelly 7th Feb 18, 8:56 PM
    • 11,921 Posts
    • 9,008 Thanks
    fatbelly
    I have to say, I disagree with Exbankclerk.

    I don't believe it's a good idea, to turn unsecured debt into secured debt.
    Originally posted by Bedsit Bob
    Lots of people did just that before the credit crunch. There were many disasters. I remember Martin being very vocal about Carol Vorderman promoting those products.
    • Happier Me
    • By Happier Me 8th Feb 18, 8:20 AM
    • 404 Posts
    • 895 Thanks
    Happier Me
    I think you need to tell you wife. Not an easy or pleasant task but at the moment you can only tackle your own spending whereas there us likely to be some fat to trim from the food, holiday and present budgets. Think of all that interest you are currently paying out - that's the equivalent of a couple of very nice holidays a year! Come clean, join forces and get the debt gone sooner as a tram. As the debt reduces you can take advantage of lower rate or 0% cards.

    It's not for everyone but my husband and I pool our finances including credit card debt meaning we can get the best 0% deals out there. You may well able to shift some of that debt between you to save on interest.
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