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. 

kimwp

Best to post an SOA (link in my signature) of what your income and spend is and we can take a look. If any categories are going to change after maternity leave finishes, put a note against them after you've pasted it in here.

BlueManc10

Statement of Affairs and Personal Balance Sheet

Household Information

Number of adults in household........... 2

Number of children in household......... 2

Number of cars owned.................... 1 *This is on finance

Monthly Income Details

Monthly income after tax................ 2514

Partners monthly income after tax....... 750 * This will increase to £1600

Benefits................................ 142

Other income............................ 0[b]

Total monthly income.................... 3406

Monthly Expense Details

Mortgage................................ 736

Secured/HP loan repayments.............. 200

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 166

Electricity............................. 90

Gas..................................... 70

Oil..................................... 0

Water rates............................. 52.67

Telephone (land line)................... 0

Mobile phone............................ 60

TV Licence.............................. 13.25

Satellite/Cable TV...................... 100

Internet Services....................... 0

Groceries etc. ......................... 300

Clothing................................ 50

Petrol/diesel........................... 80

Road tax................................ 14.43

Car Insurance........................... 87.58

Car maintenance (including MOT)......... 50

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 500 *this will increase to £1000

Other child related expenses............ 100

Medical (prescriptions, dentist etc).... 0

Pet insurance/vet bills................. 0

Buildings insurance..................... 19

Contents insurance...................... 0

Life assurance ......................... 19

Other insurance......................... 0

Presents (birthday, christmas etc)...... 30

Haircuts................................ 30

Entertainment........................... 100

Holiday................................. 0

Emergency fund.......................... 0[b]

Total monthly expenses.................. 2867.93

Assets

Cash.................................... 0

House value (Gross)..................... 250000

Shares and bonds........................ 0

Car(s).................................. 12000

Other assets............................ 0

Total Assets............................ 262000

Secured & HP Debts

Description....................Debt......Monthly...APR

Mortgage...................... 196000...(736)......2.6[b]

Total secured & HP debts...... 196000....-.........-   [/b]

[b]Unsecured Debts

Description....................Debt......Monthly...APR

Credit Card....................6718......258.......26.6

Credit Card....................6584......112.......26.49

Credit Card....................3729......89........24.9

Store Card.....................1200......79........44.9

Store Card.....................767.......44........24.9

Credit Card....................620.......25........24.6[b]

Total unsecured debts..........19618.....607.......-  

Monthly Budget Summary

Total monthly income.................... 3,406

Expenses (including HP & secured debts). 2,667.93

Available for debt repayments........... 738.07

Monthly UNsecured debt repayments....... 607

Amount left after debt repayments....... 131.07

Personal Balance Sheet Summary

Total assets (things you own)........... 262,000

Total HP & Secured debt................. -196,000

Total Unsecured debt.................... -19,618

Net Assets.............................. 46,382

Created using the SOA calculator at www.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.

RAS

Hi, is this what you think you spend, or have you gone through the last few months statements?  Do you actually have £130 available at the month end?

The starting point is that you put everything spare on the 44.9 percent store card. 

Given you've a lot of store cards, anything you can sell, car boot to raise a bit of cash?

You don't appear to have any savings at all? Which leaves you massively vulnerable. Review the satellite and entertainment budgets and get at least £50 per month into n emergency fund. And add half of anything you sell or carboot until you have £500 there.

Rob5342

£100 on satellite TV is a lot. I assume that includes broadband, but you could get a broadband only deal for £25 or so, plus one streaming service for £8 or so.

Andyjflet

Morning, well done for posting, I was in a similar boat to you, for years in fact, and mine included child maintenance after a divorce. I discovered Dave Ramsey and completed his baby steps, I'm now debt free, totally with savings. Google Dave Ramsey baby steps and find is podcasts and on you tube, take away the US yeehaaa bits and you have a solid plan to get out of debt. 

Grumpelstiltskin

Number 1 you must tell your partner the exact amount of the debts.
You both need to be on the same page about this.

Number 2 Can groceries be reduce a little bit?

Number 3 you can't afford £100 a month on entertainment.

Number 4 why is car insurance so high?

Floss

Can you or your partner buy childcare vouchers through your employer? The cost is taken before you pay tax, so there is a saving: 
https://www.gov.uk/tax-free-childcare

BlueManc10

Grumpelstiltskin said:

Number 1 you must tell your partner the exact amount of the debts.
You both need to be on the same page about this.

Number 2 Can groceries be reduce a little bit?

Number 3 you can't afford £100 a month on entertainment.

Number 4 why is car insurance so high?

1. will tell my partner about this. But was trying to get it down to a reasonable level before doing so. 

2. We have been trying to cut this down but with two young children it's difficult as they need lots of non negotiable stuff

3. Agreed. And this is something we can cut. 

4. As I've only been driving 6 months. That insurance is for me and my partner. 

BlueManc10

Andyjflet said:

Morning, well done for posting, I was in a similar boat to you, for years in fact, and mine included child maintenance after a divorce. I discovered Dave Ramsey and completed his baby steps, I'm now debt free, totally with savings. Google Dave Ramsey baby steps and find is podcasts and on you tube, take away the US yeehaaa bits and you have a solid plan to get out of debt. 

Thank you. How long did this take? I'll definitely look it up. 

Grumpelstiltskin

 I don't agree with not telling your partner until the total has been reduced, the sooner she knows the more she can be onside.

Why with 2 young children do they need 'stuff' that is non negotiable, I hope you and your partner haven't fallen for the advertising saying you must buy xy&z.