Worried!

tealady

Hi
Just a thought. If you wife has debts as well do a joint SOA (you don't have to post it if you don't want to). Then see what surplus you have between you for paying your debts. You could then between you make minimum payments to all except the highest APR one, that you need to throw as much as you can at it. If you look at the sticky at the top there is a snowballer, it will help you work out how to clear the debts quickest.
HTH

DVardysShadow

Tats wrote: »

Here's my SOA... nearly had second thoughts about posting it, as it's quite embarassing...

Statement of Affairs and Personal Balance Sheet

Household Information
Number of adults in household........... 2
Number of children in household......... 3
Number of cars owned.................... 2

I would say with 2 adults and responsibility for 3 children, you need to be pulling together more. Obviously, finance is sensitive between you, but equally, your wife has been studying while you have been supporting the family, so you really need to think about joint finances. You need to pull together on this - and a joint SoA would be the place to start.

Part of the package, I would say is to look at the debt and each claim any stupid spending as your own

moneypanicker

I'll echo what other people have said - you need to look at finances together. Is your wife full-time? Even as a newly qualified nurse working full-time with weekend and night shifts she should be earning at least 1300 a month! Currently your wife gives you 300 + vet bills + tv license (12 a month?) + clothing that certainly does not add up to 1300. There is probably about £800 left there, what is that for?

You've not said how old your children are, what about child benefit? Can you not pool money together and each have same amount of disposable income so that you are both paying off the debts.

fatbelly

moneypanicker wrote: »

You've not said how old your children are, what about child benefit? Can you not pool money together and each have same amount of disposable income so that you are both paying off the debts.

And Child Tax Credit.

I agree with this poster.

On first glance your SOA made me think about recommending Bankruptcy (negative equity, not much surplus to throw at what are large debts). The bigger picture may mean that a DMP could repay the debts in a reasonable time. But you'll need to work together at it.

Tats_2

Thanks for all the replies and suggestions.

D9 your comments are useful, thank you. Somethings can be changed and some can't, so i'll just have to work through it.

I tried to sit down and work it through with my wife last night but it ended up in a blazing arguement! (She's been on nights though so that didn't help).

As for Tax Credit, Child Benefit.. we were overpaid last year so don't have any this year, apparently - but this does need checking/reviewing., as my Wife deals with this. Children are 15, 13 and 6.

Will try and sort things out at the weekend.

If we/I go down the DMP route i guess my credit rating will go down. Will this also effect mortgage applications? Our current mortgage agreement end in Jan 2012.

ceejaydee23

In my view ALL joint household bills should be percentaged out according to how much the individual earns. So therefore each party is loosing the same percentage towards the bills. Myself and my partner have realised how wrong we were behaving with "seperate" finainces, meaning i was constantly struggling, and he then thinking we had enough to splash out on take aways lol

Since moving bank accounts away from my overdraft, we have certainly been juggling some money back n forth, BUT we have coped these last 2 months (just) Stop using debit cards too! only have cash on you! You will be suprised, how many of those "little spends" add up.

I think you have both got stuck in a habit, you have been used to supporting your wife, and now she is working she does need to pay a bigger proportion into the household bills!

dancingfairy

Hi- yes if you default on your minimum payments then it will affect your credit file and yes it will make it more difficult to get a new mortgage. As far as I know having a joint mortgage (if you do) means your finances are linked so your financial problems could affect her and vice versa.
I also think that if the debt was run up while supporting her studying then she should be involved as well.

Bankruptcy especially will affect her so whether she likes it or not she's going to be affected - I hope you can sit down and have a sensible conversation about it.
It would be worth having a chat with someone like National Debtline, CCCS or your local CAB.
Best of Luck
df

Atom

Tats im not getting a dig at you or anything but you see this all the time - too many people try to live a lifestyle they cannot afford and then when they have racked up enough debts they can no longer afford or cope with they start regretting it, get stressed end up with depression and so on, im relatively new here but iv read numerous people doing the same thing, why can't people control themselves instead of living for the moment ?

brokeinlondon

I think that's unfair and not relevant to the OP's situation. His wife was out of work studying and it costs a lot to support 3 kids!

Atom

So its ok to rack up 25k of debts because you have 3 kids even though you cannot afford it ? many people live on very low incomes and still get by, i have been there in the past, last thing i would want to do is get into huge debt, he was living beyond his means.