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Husband in debt - where to start?

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Hi,
I've just found out that my husband has accrued £15k in debt in the last year from a secret gambling addiction. We're working through the addiction side of things through GA meetings and counselling, but when it comes to the debt, I haven't got a clue where to start.

He has three credit cards and a maxed out bank overdraft which is charging daily interest. While he knows it is his responsibility to pay all of this back, I've taken control of all the finances in order to stop any further gambling and want to help manage this process in the best way possible. Our three year fixed mortgage ends next June and I'm worried about the impact this will have on our combined credit score.

I know itll be a long road, and the debt is only one aspect of this, but any advice on the best place to start with it?

Thanks in advance.

Comments

  • Dobbibill
    Dobbibill Posts: 4,194 Ambassador
    Part of the Furniture 1,000 Posts Mortgage-free Glee! Name Dropper
    I would say a SOA is the best starting position now you have sought support through GA.

    Here is the link
    http://www.stoozing.com/calculator/soa.php

    You can complete it as a household or as his income alone if that's how you manage your joint bills - that's personal preference.

    Once you have posted that, you will get tailored suggestions in moving forward.
    I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

    If you can't be the best -
    Just be better than you were yesterday.
  • best of luck with this. The Government have ALOT to answer for...
    Savings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS
  • junebug87
    junebug87 Posts: 53 Forumite
    Ninth Anniversary 10 Posts Combo Breaker
    edited 2 April 2018 at 10:22PM
    Thank you for your replies and good luck wishes.

    I've completed the SOA, hopefully I've done this correctly. I've based it on his income alone (so essentially, all outgoings have been halved - we both pay the same amount into a joint account each month to cover all mortgage/insurance/household expenditure). Although saying this I have left the total mortgage debt/house value as the full amount - this hasn't been halved.

    With the credit cards/overdraft - I don't know what the APR/minimum payments are for all of these. I believe two (Lloyds and M&S) are 0% balance transfer.


    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household.........
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 1750
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1750


    Monthly Expense Details

    Mortgage................................ 441.7
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 58
    Electricity............................. 20
    Gas..................................... 20
    Oil..................................... 0
    Water rates............................. 28
    Telephone (land line)................... 0
    Mobile phone............................ 32
    TV Licence.............................. 6
    Satellite/Cable TV...................... 5
    Internet Services....................... 12
    Groceries etc. ......................... 100
    Clothing................................ 30
    Petrol/diesel........................... 50
    Road tax................................ 5
    Car Insurance........................... 30
    Car maintenance (including MOT)......... 15
    Car parking............................. 0
    Other travel............................ 10
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 5
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 5
    Contents insurance...................... 5
    Life assurance ......................... 5
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 10
    Haircuts................................ 5
    Entertainment........................... 60
    Holiday................................. 25
    Emergency fund.......................... 50
    Total monthly expenses.................. 1032.7



    Assets

    Cash.................................... 0
    House value (Gross)..................... 240000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 240000



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 200000...(441.7)....0
    Total secured & HP debts...... 200000....-.........-


    Unsecured Debts
    Description....................Debt......Monthly...APR
    Overdraft......................3816.16...4.73......0
    Lloyds Credit Card.............2377.5....100.......0
    Halifax Credit Card............4822.16...0.........18.95
    Halifac CC (Joint).............350.......0.........0
    M&S Credit Card................2894.65...0.........0
    Total unsecured debts..........14260.47..104.73....-



    Monthly Budget Summary

    Total monthly income.................... 1,750
    Expenses (including HP & secured debts). 1,032.7
    Available for debt repayments........... 717.3
    Monthly UNsecured debt repayments....... 104.73
    Amount left after debt repayments....... 612.57


    Personal Balance Sheet Summary
    Total assets (things you own)........... 240,000
    Total HP & Secured debt................. -200,000
    Total Unsecured debt.................... -14,260.47
    Net Assets.............................. 25,739.53


    Created using the SOA calculator at https://www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.
  • Dobbibill
    Dobbibill Posts: 4,194 Ambassador
    Part of the Furniture 1,000 Posts Mortgage-free Glee! Name Dropper
    junebug87 wrote: »


    Statement of Affairs and Personal Balance Sheet

    Household Information

    Number of adults in household........... 2
    Number of children in household.........
    Number of cars owned.................... 1

    Monthly Income Details

    Monthly income after tax................ 1750
    Partners monthly income after tax....... 0
    Benefits................................ 0
    Other income............................ 0
    Total monthly income.................... 1750


    Monthly Expense Details

    Mortgage................................ 441.7
    Secured/HP loan repayments.............. 0
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 58 If this is paid over the standard 10 months, change it to 12 to free up more each month for debt-busting.
    Electricity............................. 20
    Gas..................................... 20
    Oil..................................... 0
    Water rates............................. 28 As above with the C. Tax if it's over the standard 10 months.
    Telephone (land line)................... 0
    Mobile phone............................ 32 When is this out of contract - a £10 SIMO deal is sufficient
    TV Licence.............................. 6
    Satellite/Cable TV...................... 5
    Internet Services....................... 12
    Groceries etc. ......................... 100
    Clothing................................ 30 clothing ban for 6 months, frees up £180 towards the debt-busting.
    Petrol/diesel........................... 50
    Road tax................................ 5
    Car Insurance........................... 30 when this is due for renewal, check out things like TCB/Quidco for cashback.
    Car maintenance (including MOT)......... 15
    Car parking............................. 0
    Other travel............................ 10
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 5
    Pet insurance/vet bills................. 0
    Buildings insurance..................... 5 As above with car insurance - check out TCB/Quidco
    Contents insurance...................... 5
    Life assurance ......................... 5
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 10
    Haircuts................................ 5
    Entertainment........................... 60
    Holiday................................. 25
    Emergency fund.......................... 50 is this a wish list? there is no cash recorded below
    Total monthly expenses.................. 1032.7



    Assets

    Cash.................................... 0 this should have something in it if you are savings in an EFund.
    House value (Gross)..................... 240000
    Shares and bonds........................ 0
    Car(s).................................. 0
    Other assets............................ 0
    Total Assets............................ 240000



    Secured & HP Debts

    Description....................Debt......Monthly...APR
    Mortgage...................... 200000...(441.7)....0
    Total secured & HP debts...... 200000....-.........-


    Unsecured Debts
    Description....................Debt......Monthly...APR
    Overdraft......................3816.16...4.73......0 are these daily charges calculated over the month?
    Lloyds Credit Card.............2377.5....100.......0 dig out the APR
    Halifax Credit Card............4822.16...0.........18.95
    Halifac CC (Joint).............350.......0.........0 dig out the APR
    M&S Credit Card................2894.65...0.........0 ditto
    Total unsecured debts..........14260.47..104.73....-



    Monthly Budget Summary

    Total monthly income.................... 1,750
    Expenses (including HP & secured debts). 1,032.7
    Available for debt repayments........... 717.3
    Monthly UNsecured debt repayments....... 104.73
    Amount left after debt repayments....... 612.57
    this is a good start if it's accurate

    Personal Balance Sheet Summary
    Total assets (things you own)........... 240,000
    Total HP & Secured debt................. -200,000
    Total Unsecured debt.................... -14,260.47
    Net Assets.............................. 25,739.53


    Created using the SOA calculator at www.stoozing.com.
    Reproduced on Moneysavingexpert with permission, using other browser.

    I've added some comments in red above.

    The good news is that if the SOA is accurate, he has disposible income to throw at the debt each month.
    Once the APR information is found, you can prioritise which debt to tackle first.
    If the overdraft is calculated on a daily fee basis, can you leave funds in the account until the end of the month to minimise the amount of OD used each day. (less days until the next pay day etc means less cost)

    It may be that the SOA needs to be tweaked if that's not the amount left.

    Don't expect it to disappear overnight, it was probably built up over time and will take time to get rid but is quite do-able with committment and determination.

    I wish you both all the best.
    I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

    If you can't be the best -
    Just be better than you were yesterday.
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