SOA, it's all a mess and I think we are in too deep

EimearF

Sounds like a good plan, the money transfer works out 2% per year so its a lot less than you were paying on those debts. 
As you pay down your cards you will get more balance transfer offers.
Keep us updated on your progress

fatbelly

YORKSHIRELASS said:

Thanks all, some really good advice, very grateful for your help.  Bizarrely the current situation is going to help us a little, I am currently not using my car so that's £120 saved, DH can continue doing some work (unless the government issue further restrictions) and also claim the 80% self employed help, and both boys are now going to contribute something.  I am also due a small pay rise.  DH has a £5k money transfer available on his Virgin card which has a hefty 4% fee but gives us two years interest free.  We are going to use that to clear the Next account (and cancel it) and also the Halifax card with the highest interest.  I have been really worried about not clearing the Mortgage Reserve in 4 years, but if we can keep our decent credit history then we could borrow something to cover whatever is left (although I know that's not ideal).  I think the plan now is to have 6 months of not paying the reserve, budgeting really carefully, taking advantage of every balance transfer we can get, trying to increase our income and seeing where that leaves us.  If at the end of that period we know we cant make it work then we will go to Stepchange for advice, and may think about adding the reserve to our mortgage.

I agree that sounds like a good plan.

It's perfectly ok to do something with your mortgage reserve, be that a personal loan or remortgage. 

Moneywhizz

Sounds like you have worked out a really good plan to pay off your debt and wait to pay off the mortgage reserve with a loan, or adding it to your mortgage later on. You are actually in quite a promising place where you could be debt and mortgage free within around 6 years. That depends of course, on you maintaining your present circumstances and income and as we know that doesn't always work the way we think. The best thing you can do at the moment is stick to your plan and make your budget as realistic as possible so that it allows you some spending money even if it isn't very much initially. I would also build up that emergency fund as much as possible especially as you need to keep two cars running and you haven't allowed a great deal for maintenance for them. But there are other areas in your SOA that you have already thought of reducing so that could help with the emergency fund. Good luck with your plans and let us know how things are going. 

YORKSHIRELASS

Thanks all, I think a bit of an emergency fund is a priority actually, I have a savings account with £400 in and I want to get this up to £1000 for now.  DH has been home today and has sorted the shed, we have two bikes and a roof box that we never use, not maybe the right time to sell them but that might be £350 just sitting there.  It all feels more positive but as you say a realistic budget and being honest with ourselves about the situation is the only way forward.  

PurpleFairy26

Worth looking at all your outgoings, utilities, phones etc... and check you are on the lowest tariffs. You also have money in the SOA for holiday - is this booked? Same for haircuts - assume they are not happening, at least in April so take them out and see where you get too. Get you EF up and running, do the balance transfer and close the accounts you can (like next) 

you are still young, only have 4 years left on your mortgage so despite the relatively high level of unsecured debt, it could be much worse. When you get on top of a few of the accounts and stop paying interest you will notice the overall total coming down. 

YORKSHIRELASS

Thanks, our electric has always been high, we dont have mains gas so use quite a bit of electric, was hoping this would go down when the boys moved out but they are both back temporarily!  No holiday booked, we might try and get a weekend or two in camping but that will be all.  My highlights have almost grown out as I haven't been able to get to the hairdressers so it will be home colouring for a while.  We are getting our head around cutting everything back to the minimum.  Balance transfer done, have paid off the smallest Halifax card, a chunk off the other Halifax card and the Next Account.  Feel like we are making progress!

PurpleFairy26

Keep us updated. Don’t forget to come by the small things weekly thread if you want to.