Sorting out my husbands debts

BombayMix

Hi all. I'm worried about my hubby, he's useless with money and I want to make some big changes before it gets out of control. He had around £7500 debts on credit cards, he then used a personal loan from HSBC to pay these off, and is currently paying £141 per month on this loan. He has managed to fritter away money these last couple of months and go £1200 in the red on his current account, so is getting charged £150 a month for this. So far as I know these are his only debts. Now, I am very, um, tight with my money and stay within my limits. I do not own any credit cards or have any loans. As a couple we are not in too bad a financial situation, we have enough to get by on but nothing left over for luxuries or savings. I want to take over all the finances, I can't stand living with the worry of what he's getting himself into. Since I've never had a credit card I don't know if his actions of moving the debt to a loan were a good idea? Can he close his account and transfer the loan reapyments to me? Can anyone give me any advice on how to start sorting this out? I'm a complete novice at dealing with debts (and foolish new husbands!)

BombayMix

I think I should transfer his income to my bank account, then set up a direct debit to pay money into his account each month to pay off his loans.I will sort out his overdraft first so he's not getting stung by charges anymore. Then I shall confiscate his debit and credit cards.

tallyhoh

If you read some of my posts you will see I am in a similar situation. However taking charge of your OH's debts may not be the answer. Do you know how long he has been in debt & does it have any underlying causes? My concern is that if you (like me) take total charge they know that their basic needs will be taken care & they start viewing any money they have as "pocket money", ie to be frittered away on rubbish. You are treating them as a child & they will never be able to shoulder responsibility with cash.
I unfortunately have had to take this road to protect the roof over my head. I know because of my OH's problems (over 40 years of debt) he will never be able to take control.
Sorry that this seems contrary advice but you have to decide which is right for you.

BombayMix

Hi Tally, yes I see what you mean. He has been in and out of debt for a few years, it's never been a massive amount. He never checks his bank account or credit cards, he never opens letters whether they be bills or bank statements, he spends money on unimportant rubbish. Then he gets hit by overdraft fees. I managed to claim back quite a few thousand on his overdraft fees a while ago but he had to sign a thing to say he wouldn't try to claim again in the future. He's been paying less each month on his credit card than he should so that's never going to get paid off if left to him. So I think he's basically a Mister Magoo type when it comes to money, completely clueless. When I went online and checked his accounts for the first time I felt like smacking him, he had no idea he was even overdrawn. So he's already frittering away money. I don't want to turn into a nagging harpy of a wife, but I just can't trust him. I've been reading a lot of great advice on this ite and feel more able to deal with the debts now. First step - give up smoking and save some cash! Wish me luck...

TurnaroundSue

Could this be something you could do together? Does he know that he's rubbish with money? Will he accept your help? I think maybe if he is receptive to your help then it might be a good thing to sit down together, work out his SOA and see how much he has left and then maybe he can have a certain amount for himself - the rest goes in the pot, so to speak.