Clearing debt, running up debt spiral!

rrcg

Just opened the post today. My joint bank accout with OH is in the red to 5.5k.
I have savings which we wanted to use on a new house, but think that it would be a better idea to pay off the overdraft and then build up savings of 5.5k to repay into my savings account.

I am sick of doing this - Oh doesnt earn a great amount, and we have 3 children. I am the carer to my daughter who has severe disabilities. OH was made redundant 3 years ago when she was very sick, and is now on half that salary, but at least local.

Sorry for the winge - we still live like we have his original salary - OH has 3 internet ccs and I dont know what he spends on them and how much is outstanding. He earns 1600 per month after tax, and these 3 ccds took £780 out of the joint account this month - it seems the same for most months.

We looked at new cars yesterday...The whole thinks worries me sick. Soon my savings will dry up - and we still need to move....

Pollycat

Hi there and welcome.

It sounds to me like your OH has not had his light bulb moment yet and until that happens, it will be very difficult for you to start tackling the situation you're in.

You say you've been looking at new cars - have you and your OH discussed your financial position at all?

Is it at all possible to get him to sit down and talk about it?
He can't continue to do ostrich impressions for ever.

If you don't know what your OH's debts are, it may be very hard to do but you should consider doing a SOA (Statement of Affairs) - see here for the template:
http://www.makesenseofcards.com/soacalc.html
You'd get lots of advice on how to cut your expenditure and prioritise your debts.

I assume that you're getting all the benefits you're entitled to.
Take a look at the 'Benefits and Tax Credits' forum.

I really do hope you can make your OH see sense - before it's too late for you.

rrcg

Thanks Pollycat,
I sopke to OH last night - he says that all his credit cards are paid off now...!!
I will ask him to print off the last couple of months bills tomorrow.(I dont want him to get all stubborn on me), I can then go through them over the weekend. He says most of it is on food and petrol. there is no cashback on the credit cards so I will try to get him to pay by the joint debit card.

For the car - we currently own ours outright - 6.5 years old so not worth much. We are looking at motability cars - 7 seater as our daughter has to have large equipment, and she cannot use public transport.

I keep making half hearted attempts to stay within earnings.

Must try harder!!!

RAS

Hi

if you put up a full Soa, people can identify things where you can save money or get cash-backs etc.

tyllwyd

Just on the one point - you say you've got an overdraft of £5.5K? I would be very worried about having an overdraft that high. Even if it is approved, you are very exposed if the bank suddenly decides to withdraw it or cut it down considerably. Also, overdrafts tend to have very high interest rates, which is fine if you are only in them for a few days a month, but if it is a permanent situation you might be paying well over the odds.

If I were you, I'd seriously look at either converting the overdraft to a loan, using the savings to pay it off, or keeping the savings available ready to pay it off if need be. Tying your money up in property which is a long term investment, when you have a debt that you could be asked to repay at short notice, doesn't strike me as the best idea.