My credit card debt has spiralled

BlueManc10

So. About two years ago just as COVID hit I had a couple of credit cards with a couple of hundred quid on. Both were 0% interest and all was well....then COVID hit and my girlfriend had our first child. She went on maternity leave and so money was tight and I started to put bits and bobs on credit cards. 

Anyway without boring you all a huge essay. We have since had another child and again she on on rubbish maternity pay and we have also moved house and done lots of work in the house and again I've thrown things on a credit card all the while just paying the minimum.

I have three cards in total and my highest credit limit is 8k. As my limits weren't astronomically high I thought nothing of it but over the years and when added together these balances are now somewhere in the region of £17k, one at 7k, one at 6k and one at 4k and I'm in a bit of a pickle. My girlfriend thinks I owe about £8k in total so she is unaware of the scale of the problem. 

I earn decent enough money and when she goes back to work out household income is around 75k a year but childcare costs are crippling. I pay the minimum payments each month but my balance transfer offers and 0% interest periods have all run out and I'm struggling to be accepted for another card with a large enough limit to transfer the balances. 

In summary I'm just after some advice on the best way to tackle this, as £17k feels like a huge amount of money to owe and I can't realistically think of a way I'll ever be able to pay this off as currently each month we run out of money. I pay off hundreds on a card and then have to use again to live. 

PartyOfFive

Go ti the debt free Wannabe board and post a statement of affairs - plenty of people will be on hand to offer solid advice. Just be prepared to accept some hard life choices.

MorningcoffeeIV

BlueManc10 said:

 I'm struggling to be accepted for another card with a large enough limit to transfer the balances. 
 

You also don't need a card with a limit high enough to accept the balances.

You accept BT you're offered, transfer what you can and start reducing your interest immediately.

th081

Hi OP,

As already mentioned the first thing is to find out what your position is re income Vs outgoings. You want to do a detailed spreadsheet listing every item of expenditure over a month and then compare to your income (both now and when you GF goes back to work) to see what the gap is. Once you list your expenditure line by line it can be an eye-opener and might identify things you can cut back on.

At the moment like a lot of people you are at the stage where you know you have a problem but don't know how big the problem is. Once you know the scale of the problem this will inform the options. 

At 17k credit debt you will be facing approx £300 a month in interest assuming none is on 0 per cent. Also worth checking your credit files to see if they show anything negative (other than the high debt)

BlueManc10

I don't feel like it's out of control. I do pay minimum payments and above when I can and I'm due a pay rise this year and then my partner will be back at work. It's more that I don't want it to get completely out of control. 

I have filled in budgeting sheets and cut back where I can. I almost feel I came here for reassurance that £17k isn't the end of the world. 

eskbanker

BlueManc10 said:

I don't feel like it's out of control. I do pay minimum payments and above when I can and I'm due a pay rise this year and then my partner will be back at work. It's more that I don't want it to get completely out of control. 

I have filled in budgeting sheets and cut back where I can. I almost feel I came here for reassurance that £17k isn't the end of the world. 

It's up to you to determine how serious the issue is but you did appear concerned in your OP:

BlueManc10 said:

In summary I'm just after some advice on the best way to tackle this, as £17k feels like a huge amount of money to owe and I can't realistically think of a way I'll ever be able to pay this off as currently each month we run out of money. I pay off hundreds on a card and then have to use again to live. 

and the best way to tackle it is to have a clear plan to navigate your way out of debt, rather than simply getting by.

born_again

Op has started a thread as per advice above.

https://forums.moneysavingexpert.com/discussion/6451687/credit-card-debt-has-spiralled#latest

BlueManc10

Apologies for having two threads. Can these be merged or can I delete this one? Sorry for my ignorance. I'm new round these parts. 

MSE_ForumTeam5

We've closed this thread so that responses can be given in the other thread