Where do I even start .... beginning of my journey

debftfreedream

Thanks for advice so good talking it through ….

My panic with reducing the overdraft is what if I then cant make a minimum payment ….

I will do the SOA, definitely saving on bills will be a biggie too.

debftfreedream

Mortgage £700
Council Tax £180
Insurance £26
Alarm £26
Sky £80
British Gas £99
Water £35
TV license £12

Total £1158

I earn £800 a month
hubby gives me £390 towards all of above (the rest of his goes to both our cars like insurance, AA, petrol, both our mobile phones and all our food for the month)

It's just the way we've always done it.
He's not aware of my debt ... that's why i'm trying to just work with what i've got for now ...

so to reiterate debts are;

Loan at £4080 at 14%

---

i repay £300 a month ends oct 2018

Credit cards
£1,229 26%

---

(Halifax repay £45 a month)
£1900 22.90%

---

(Barclaycard repay £55 a month)
£2,505 17.43%

---

(RBS repay £60 a month)
£3,366 21.94%

---

(lloyds repay £65 a month)
£4,528 18%

---

( m+s repy £120 a month)
£6,233 19%

---

( Virgin repay £150 a month)

My overdraft is now £1500 thanks to my dad. (my limit is £5000.)

I also get £130 child benefit too a month

What should my next steps be please im drowning and dont know what to do for the best.
Part of me thinks get rid of the halifax credit card ... i know id be paying it with my overfraft tho but it would save an outgoing surely?

GlendaSugarbean

First step: even with the money from your DH you only have £50 left a month for everything. That is not much! Does your DH have more than that left over after paying his bills? If so he needs to up his contributions.

Can you sit down together and explain that your wages + his bill money barely covers the essentials? If you can work out between you what your essential bills are, you can tally this agai at both of your incomes and split any remainder 50/50.

How does he think you are mabaging at all when your income doesn't even cover the mortgage and council tax?

debftfreedream

All his money is accounted for on our 2 cars, plus 2 car finances plus shopping plus anything we need.

I deal with both wages so I know exactly where its going sadly there's no extra.

enthusiasticsaver

I would say first get rid of Sky. Is that TV or phone and internet too? If it is out of contract then cancel or at least get it reduced.

I think a DMP is something you will have to consider in view of the fact you are paying interest and not able to make a dent in the debt. There is also not enough from your income to pay minimums and increasing the overdraft is definitely not a good idea. This will at least mean the interest is frozen and any repayments will go to the debt rather than to interest. This involves you contacting stepchange and going through the figures with them. You will also need to open a new bank account not connected with your debtors (basic only with no overdraft) and arrange for your wages and the £390 from your husband to go in there.

debftfreedream

Thanks for info …. haven't got a clue about dmps …. how do they affect house/mortgage/credit ratings etc?

We have a mortgage which is fine we can pay.

Credit rating is excellent regardless of my debt as I never miss payments (just juggle sadly)

But yeah basically how will it affect me?

debftfreedream

Also if I contact the credit card companies and ask to close them, will that freeze the interest?

Because I don't actually use any of them just pay whats on them, so my debt isn't increasing in that respect.

enthusiasticsaver

The credit card companies wont close the balance and freeze the interest if you continue paying minimums. I am not sure how you are paying minimums as the income you have does not cover the bills you mention you have to pay plus the minimums and loan payment. If you are increasing your overdraft to pay them then you are increasing the debt and in the most expensive and precarious way as overdrafts can be withdrawn at any time.

The only way credit card companies will stop charging interest is if you go on to a DMP and default on the minimums which on your income it seems you would have to do. This means no more credit, it will affect your credit rating but you may be able to remortgage with your existing provider as they do not usually do a credit search. Remortgaging with a new lender will not be possible though until the defaults drop off your record which takes 6 years.

If your income is £800 a month and you have £130 child benefit and £390 from your husband this makes a total monthly income of £1320. Your debt repayments are £930 and essential bills are £1158 so total outgoings are £2088 so it is not surprising you are in debt as you have a monthly shortfall of more than £900 and that is not even taking the overdraft into account. Your husband is not paying enough to cover essential bills and mortgage so this is joint debt. Any DMP you go on will affect him too as you have a joint mortgage so this needs to be discussed with him. I cannot see how you can continue like this though without defaulting and going on a DMP or increasing your income.

kazwookie

debftfreedream wrote: »

Mortgage £700
Council Tax £180
Insurance £26
Alarm £26 <, what is this for? £312 per year
Sky £80 < get rid
British Gas £99 < is this both gas and electric? are you on the cheapest tarrif?
Water £35
TV license £12

Total £1158

It's just the way we've always done it. < you are in a muddle and this is not the best way from the information given

He's not aware of my debt ... that's why i'm trying to just work with what i've got for now ...< you need to tell him, as you are well short of your outgoings, something will have to give

Have you anything you can sell?
Can you or your husband up your hours, or get another job?
You BOTH need to keep a spending diary to see what you are ACTUALLY spending.

Good luck

a_silver_lining

Your partner gives you £390 to even out with your 1158 expediences implying £768 is spent on cars, food and phones. Food for two people can easily be £200pm, phones way under £50 The pair, meaning cars are over £500pm. Your half presumably being around £250pm.

Is your car just for work, could you do without it? You earn £800pm and have a car on finance. How much is the car worth/ How much are monthly payments, petrol, servicing, insurance etc? If it's £250pm then you are only earning £550pm for example. It may be the car is a luxury you can forgo if public transport, lifts from partner or a job nearer to home is possible.