Consolidate debts

ashlea1104

Hi guys....
I was wondering if someone could offer some advice as I’m in a bit of a pickle. My partner has two credit cards which both have debt on them he also has an overdraft account which is at its max limit. Is there anyway he can consolidate it all and pay off one monthly payment? as it’s all getting too much. I have looked at the balance transfer credit cards but the eligibility calculator is saying he is not eligible for any of them apart from barclaycard which is one of the credit cards he already had with debt on and this is only 10% chance he may get it. We just need a way of putting it all together as one debt with as little interest added on as possible and being able to pay off because we just can’t do all of these debts. I really don’t understand all of this stuff and have googled but I can’t make sense of it all. Thank you in advance.

[Deleted User]

Post a Statement Of Affairs on the Debt-Free Wannabe board.

That will give you a view of what you can cut back on.

Other than that the obvious applies - work more, spend less, sell things etc.

Terry_Towelling

The first thing your partner needs to do is to work out what has caused these debts to get to this unmanageable stage. Is it frivolous spending, self-indulgence, or does he have a systemic failure in his finances such that even his essential spending is more than his income?

Understanding that and being able to do something about it is the first step. The Statement of Affairs suggested by Gary Dexter is a good idea. If you don't want to 'go public' with that information, then at least get it down with pen and paper so you know what's coming in and what's going out and where it is going out to.

Consolidation of debt is fine if you can find a lender prepared to offer enough at a good enough interest rate AND if the spending on the cards and overdraft stop at the same time. There would be no point consolidating all that debt and then racking up a load more by doing the same thing.

I know that some posters will consider it impolite to ask but are you both pulling your weight equally with regard to managing your household budgets? If there is an imbalance placing a greater burden on only one half of the relationship, it may be possible to adjust contributions to even things up.

Beyond that, does your partner have anything to show for his debts? I.E. can he sell off any assets to clear any debts? Do you both look carefully at what you are spending on so-called necessities? For example, are you on the cheapest gas/electricity tariffs? Do you buy branded foods when 'unbranded' would suffice?

What about the cars you drive (if you do)? Do you take care to reduce your fuel consumption - that can save you a lot. Do you have, say, a Sky TV subscription costing a ridiculous amount each month from which you get little value - i.e. you only watch the free-to-air channels? Even if you do watch the 'paid' channels, would you be prepared to drop that to save money? Remember it's not about being choosy now that you've got into this position; it's about doing the right things to get back on track.