Wifes £25k Debt

gb12345

dangermouse1 wrote: »

Hi all.

She has little to show for it. She says it's just starbucks coffees, M&S meals, massages, treatments etc. Stuff for herself as all the household blls are paid from the joint account and a lot of the biggies I'll stump up for. She's not got a passion for shoes, handbags or the like. I wish we had a new car to show for it. The debt is over the last 6 years so I never really noticed. I did think she was living above her means a bit but she was putting her bit into the family so I didn't think too much about it. She puts in less than I do as she earns a bit less than I.

DM

Has she now realised that her spending is a problem and is she committed to sorting out the problem? She is obviously living above her (and your) means, so things like the massages and treatments will have to go.

As I said before, there is little point in consolidating the debt if she is going to continue in the same way, as in another 6 years you'll end up owing another £25k.

It would appear that she has little understanding of the way credit cards work (either that or a couldn't care less attitude), so perhaps you should be taking control and ensuring that the balance doesn't start to creep up again.

dangermouse1_2

Yeah she knows she has screwed up (being polite here!) I need to get the CAB to get involved to help us set her up a Debt Man Plan so she knows what she has got to work with. It will be so much more serious coming from them. She would probably say one thing to me and do another thing. Once bitten, twice shy though!

DM

gb12345

dangermouse1 wrote: »

Yeah she knows she has screwed up (being polite here!) I need to get the CAB to get involved to help us set her up a Debt Man Plan so she knows what she has got to work with. It will be so much more serious coming from them. She would probably say one thing to me and do another thing. Once bitten, twice shy though!

DM

I wouldn't bother with the CAB - they will have no real power with the companies she owes money to.

Instead get in touch with one of the debt charities and they will negotiate with the companies and set up a DMP. Often they can get the interest frozen as well, which will help her pay off quicker.

King_Weasel

gb12345 wrote: »

I wouldn't bother with the CAB - they will have no real power with the companies she owes money to.

Instead get in touch with one of the debt charities and they will negotiate with the companies and set up a DMP. Often they can get the interest frozen as well, which will help her pay off quicker.

The CAB were v helpful to us in negotiating with banks to settle outstanding debts incurred by a family member. In our case lump sums were agreed to clear the debts, as recommended by the CAB.

patman99

One way to ensure that she can't use the cards again is to wait until they send the usual 'we are raising the interest rate' letters, then write to them rejecting the rise. They normally respond by freezing the card and turning the debt into a loan.