First timer here - need advice please credit card debt

crm23

Hi, 
we’ve got ourselves in a bit of a pickle finding that we’re spending pretty much what we earn. We have no defaults or missed payments and both are luckily on decent salaries. We don’t spend on luxury items and live fairly frugal lives. However, due to child care costs, maternity leave, a new house with higher outgoings, over time we have amassed a large amount of credit card debt. I try and do balance transfers etc but still am paying a large amount of interest and min payments. Because of the affordability not working we are unable to take out a loan to consolidate the debt. We also have £12k on an outstanding home improvement loan. I just can’t see the way out of ever paying the credit cards off. Do I ring and tell them or is there other options I’m not thinking about. We’re 1 year into our fixed rate mortgage so don’t want to really change that in the current climate. I’ll try and post a statement of affairs to assist, but any none judgemental advice would be greatly appreciated as I’m so anxious about this now and can’t see an end. 

crm23

Salaries -
me - 41,000 (take home 2091 with £243 childcare vouchers coming out)
husband - 28,000 (take home £1680)
house value approx £300k
mortgage £235k approx (£914)
tv - £13
All insurances - pet, house, life £130
gas and electric £112
ee - £100 (4 contracts)
NatWest home Loan- £294
sky £57
sofas £60
Car hp inc warranty £240
water £65
ctax £190
credit cards - 
natwest £40 
mbna £232
barclaycard 80
tesco £79
petrol £120 
food £280

my husband also has some low level outgoings that I will need to add once confirmed. 

We are a family of 5 (child benefit received for 2 , eldest is stepson who stays with us 5 days a week but his mum gets the child benefit in place of any maintenance payments either way and its an amicable arrangement with all. Youngest childcare costs are fixed at £250 but currently having to put her in more often at £53 a day (last month was £450..) 

crm23

Credit cards -
Barclaycard - £4k
tesco £7800
natwest £1800
MBNA £17300
no missed payments or defaults on credit files. 

Karonher

It will be better if you use the site SOA. There is a lot missing from that - general spending such as clothes, haircuts, presents entertainment. Also the interest rates are missing from the cards.

flipflopflo

Ther eis always a solution so don't panic. Fill out the SoA form and format to MSE and then post here so we get a full picture. Make sure you put all your outgoings including your husbands.
https://www.lemonfool.co.uk/financecalculators/soa.php

monetxchange

Definitely post an SOA and we can see where to help. It's very non judgemental here, but you will have to have a few doses of reality along the way too.

First off I'd think that on a 70k income and having amassed home loans and finance on a lot of things isn't exactly what could be called a frugal lifestyle. I get it - I too was like you. Didn't buy luxury at all so thought I was doing all I could. Reality was I was leaking money in bits and it all adds up. It's important to be honest with yourself at the beginning so you can truly have your lightbulb moment.

Well done for taking the first step and welcome!

fatbelly

I agree with the others. I've bookmarked this thread and will have a look at your soa when you post it.

There's always a way forward 

Socajam

Just a quick response - Sky is a "want" not a "need"
You need to get rid of it and use the £57 to add to your bills or save it.  Or Try ROKU below - Not sure how much the box is, but it should be a one off payment - the more knowledge people on her can advise you.  But you cannot afford to have Sky at this time - too much debt.

Roku Launches The Roku Channel in the U.K. -

The Roku Channel is now available to British consumers that have a Roku player, Roku TV, NOW TV device, or Sky Q box. The free service can be accessed without logging into the platform and will include localized content like popular British TV shows. There are around 10,000 movies, TV episodes, and documentaries in the catalog for British consumers to watch while stuck at home by the police-enforced lockdown as the country tries to stop the spread of COVID-19.

fatbelly

See it's difficult to tell what that Sky entry actually is. I assumed it was land line and broadband 

ceb1995

That is quite high for home, pet and life insurance definitely check all of them are the correct amount of cover and if you can get cheaper elsewhere, if the sky is tv then swapping to nowtv or something similar would make a big difference. 

TheAble

Freeview's good enough. Watching TV's a huge waste of time anyway.