Help needed to break cycle of debt

TW82

vickya said:

Can i ask - what's the £11,000 of other assets?

Sure. Savings + wife's redundancy pay 

MallyGirl

vickya said:

Can i ask - what's the £11,000 of other assets?

I assumed that was the redundancy payment that is being gradually used up

-taff

If the children are in childcare/nursery, head to the old style board to learn about brocery shopping and batch cooking, because they won't be eating every meal at yours, so you can reduce money spent there.

Birthdays are not ad hoc, so you might want to add them all to a claendar and decide wehter you'll be giving or having a word and saying, look, can we leave it this year please because after the redundancy, we're pulling our belts in a bit.

Bookgal88

TW82 said:

vickya said:

Can i ask - what's the £11,000 of other assets?

Sure. Savings + wife's redundancy pay

OK. Honestly, if I was in your shoes, I would be using some of that money to pay off the debts that are on cards that have an interest rate, put the rest aside as an emergency fund, and encourage your wife to get a job. I get her desire to start a business and pursue something she's interested in, but I don't think this is the best time to do it. Could your wife maybe get a part time job with regular income and then do the gardening as a side hustle to top that up? Like you said, her business will take time to build, and in that time you're trying to get by on a single income, which is going to make this harder. 
I would focus on clearing all the debts except your mortgage and then reassess. 

SadieO

There's lots of places you could cut back. I'm sure you could shave a bit from your groceries/ household expenses and cut out at least one or two of the entertainment subscriptions. The gym subscription is huge and a luxury you can't afford at the moment. You could buy some home equipment for way less than the cost of one month's membership (I bought a cross trainer off gumtree for £40!) or just go running for free until you get out of debt. And then, if you must rejoin a gym, look at Pure Gym which is a tenth of what you are currently paying!
As others have said, is now really the time for your wife to be pursuing her dream of her own business? Sorry if that sounds harsh but would it not be better to wait a year or two till your financial situation is better? Clearing the debt should be your priority as a family right now.
Edit to add: I think paying off your debt is totally doable with your income and the areas where you can make savings. Please don't add it to your mortgage! Good luck, you can do this! 

monetxchange

As others have said, there's lots of ways to trim back. Beware of a "few quid" here and there - that's how debts mount up. For example, you don't need three TV packages. Just pick one, or even find a family member or friend will let you be added to their Netflix etc. Why pay for a Disney subscription? Netflix is stuffed with kids TV. 

The gym and expensive phones are honestly lifestyle choices right now. It's up to you if it's more important that your clear debt or keep up appearances. Not trying to be harsh, but it's now at the start that you face up to these realities.

I've said what I think before about your wife setting up a business right now. What I would do if I was you was budget for the absolute worst case scenario. You're currently banking on her earning £800 each month, when in reality in a lot of months it could be 0 or even minus figures as it she buys things and tries to get up and running.

curlytop12

you are not in a too bad state - you have more incoming than outgoing
you have luxuries you can give up - gym, netflix, prime etc
you have bills you can look at reducing- utilities, mobiles, groceries, insurances etc
you have savings/redundancy to pay off  high interest CC or overdraft
you have offer of 0% balance transfer
your wife could work her gardening around the children to avoid childcare costs? 
you have done well not using the cards, you are at a great point to sort this out, good luck 

Mr87

TW things you've said here I can identify with. Be careful with your OD which you say is maxed at the end of month - it's easy to think of this as not part of your overall debt as you pay it off each month with your pay packet. I used to think this way but it leaves you with absolutely zero flexibility come the end of the month.
I have my own debt to sort out (posted today) and we aren't dissimilar, so I am not judging. I would echo there's things you can do on subscriptions, gym memberships, mobiles which make a massive difference. 'Only a few quid' but it adds up and will create breathing space for you. One thing that I don't think anyone has said yet but do you need a landline with the internet? I ditched my landline and went for a mobile (unlimited) broadband for £25 a month, netting me a £30 a month saving.