Run out of options on 0% transfers due to the high interest rates, what do I do with my debt!

fatbelly

Welcome back!

enthusiasticsaver

MargeryKempe said:

Thanks so much all, am about to start doing my SOA now that that my two teenage kids bdays are over and we've got back from family hol. I managed to do pretty well on my family hols and used the (pretty good amount of) money i'd saved up and my partner paid for everything else so I didn't get into more debt! (this was a real achivement for me as travel is one of my major weak points where it comes to spending).

You have done well not to take on more debt. If we can see the soa we can advise further. Re your partners savings you may have read we don’t advise partners to take on each others debts. You may have to consider a DMP which involves defaulting on the cards but has the benefit of freezing interest. This will trash your credit rating though. Looking for ways to keep the food bill low will help. 

MargeryKempe

I finished paying off all my debt this year. I have been 100% debt free since Feb 2025. Partner & I now in process of buying affordable housing shared ownership house. 

MargeryKempe

I didn’t write off any debt I just paid it all off.

RAS

Glad you sorted out the debt. 

Your next step may be to revisit your SOA and to create an emergency fund?

Possibly something like an ISA, where you send some money as soon as you are paid. Ideally you save a month's salary, eventually. 

In the meantime, if the cooker breaks down, or you need house repairs, you have something to fall back on, rather than a panic.

I'd suggest you also go over and read the MSE Housing Forum re things like types of shared ownership, deeds of trust. If you are not married it's more important to sort that and wills now.

And about shared ownership as SDLT, staircasing and repairs different.

MargeryKempe

Good idea. We don’t have an emergency fund as a household. I should start saving one. I could do with at least one new savings account. I am having to wait until my first direct regular saver matures to get new glasses atm (i have been on my backup glasses since sept when i broke my main pair). i think we’ve decide not to do a deed of trust although i can’t remember what the solicitor called the thing for if you break up with your partner and are not married. We will be joint tenants. Don’t know what sdlt is but will look on housing forum. I need to do my will as well. Thanks so much, Marg

RAS

Joint tenants means you both own the whole house and if one of you dies, the other gets the whole house. 

Tenants in common means that if one of you dies, you can leave your half to who ever you wish. Nothing to stop you leaving your half to your partner, or a life interest with remaindermen who get it when your partner dies.

Really needs sorting before you write wills. Do you want you partner's family to get the whole house if you are both in a car accident and he survives a short while?

MargeryKempe

I think that’s fine. I have two older teenage children so hopefully they would inherit first.