Financial pickle, advise needed

Good afternoon
I'm seeking some advice for a financial conundrum of my own making.

I'll start with background & go from there.

In 2020 we moved from our city centre location out into the country.
Lockdown was hard to take in a flat & tempted by low interest rates & bang for buck we moved 25 miles out utilising the lifetime ISA & help to buy equity.
We purchased our 3 bed home for 250k.
At the time I had a 30k full time job & my partner was on 30k.

After covid-staffing in my sector was severely depleted so I started freelancing, eventually moving on to two 6 months stints of consultancy work.
My earnings went upto around 50k & our lifestyle went up accordingly.

After these roles completed I struggled to find similar & admittedly spent too long searching for them.
After 2 months I took a PAYE role for 35k with a hefty commute.
I was made redundant from this due to lack of revenue & spent several months out of work.
Fast forward to now & I'm working again(32k) but 20k in debt.
Initially credit cards but I consolidated these with a loan (16k) which comes out at payments of £526 per month.

The positive news is we have 20k equity in house & have paid off a good chunk of mortgage.
Our interest rate (1.8%) ends in Dec 2025 & we are looking to sell our property & move back towards the city which will mean downsizing but we have realised we miss the facilities & buzz.

I'm struggling on current wage to make a dent in these debts aside from my consolidation loan amount & I've spent many sleepless nights wondering how to resolve this.

I've told my partner who was understandably annoyed as I've been very financially independent in past & good with money.

Any suggestions would be hugely helpful as the moment it feels like I'm really struggling with the stress & can't see the wood for the trees.
I'm attempting to clear as much as I can before we sell our house in hopefully 18 months time but I'm worried debt  with eat into equity which we need for a deposit for new property or debt level with render is non eligible for new mortgage.
Full outgoings below

Overdraft-£2500
Loan balance-14k(£526 monthly payment)
Credit card-£900
PayPal -£2100
Loan-£1100
Mortgage outstanding-£169k

Current house value-270k
Help to buy repayment-20% of sale value 

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Comments

  • Forgot to add-i also have a child support payment for £350 per month 
  • elsien
    elsien Posts: 32,297
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    That’s not your full outgoings, that’s a list of your debts.
    if you want more targeted advice, you need to post a statement of affairs.
    If the debts were run up with increased spending, for the both of you, would your partner not be willing to help pay them off as well if they benefited from the expenditure. 

    After all, they should’ve realised as well that spending couldn’t carry on as it was, when you were redundant/in a lower paid role.
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
  • Martico
    Martico Posts: 911
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    Here's a link to the SOA that we'd recommend filling in. 
    It would help you gain a clear picture of your budget as it stands. And - if you're willing to share it here - help the forum members assess and give advice. If you want to share, fill in as accurately as you can, click on "Format for MSE", then copy and paste here
  • EssexHebridean
    EssexHebridean Posts: 20,877
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    Hello Dawdler - the full SOA would be a good starting point for you for sure - there is a link to the one we suggest using in my signature below.

    The debts that were accrued - would I be correct in assuming that you consolidated and then didn't close the old credit accounts down, and so have now run up additional debt on tp of the consolidation loan? Unfortunately this happens a lot and is one of the reasons why generally the advice is that consolidation doesn't work. Paypal credit is  positive menace IMO - it's probably one of the most common debts we see on here these days. 

    The debt that accrued - was this for general household spending/for the two of you to maintain a lifestyle that your current household income couldn't support? If so then it should be considered "household debt" and tackled jointly IMO. It's all well and good your partner being annoyed but they must have known what the drop in oncome was - so the question here is how did they imagine the expenditure was being paid at that stage? 

    Get the SOA done, use the "format for MSE" option and copy and paste it into this thread and let's see what suggestions we can make. It's all fixable though, bear that in mind. 
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00
    Balance as at 31/12/23 = £112,000.00
    SOA CALCULATOR (for DFW newbies): SOA Calculator
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  • Full outgoings

    Mortgage £798
    Child support £350
    Loan payment £20
    PayPal payment £66
    Overdraft charges £40
    Home insurance £20
    Car tax £40
    Car tax £28
    Car insurance £42
    Car insurance £29
    Loan payment £526
    Fuel(per month) £150

    Household bills/shopping/council tax etc all paid by partner I shall find data on those but I know it's very tight on her side as she is repaying a loan to her parents towards house move 
  • Hello Dawdler - the full SOA would be a good starting point for you for sure - there is a link to the one we suggest using in my signature below.

    The debts that were accrued - would I be correct in assuming that you consolidated and then didn't close the old credit accounts down, and so have now run up additional debt on tp of the consolidation loan? Unfortunately this happens a lot and is one of the reasons why generally the advice is that consolidation doesn't work. Paypal credit is  positive menace IMO - it's probably one of the most common debts we see on here these days. 

    The debt that accrued - was this for general household spending/for the two of you to maintain a lifestyle that your current household income couldn't support? If so then it should be considered "household debt" and tackled jointly IMO. It's all well and good your partner being annoyed but they must have known what the drop in oncome was - so the question here is how did they imagine the expenditure was being paid at that stage? 

    Get the SOA done, use the "format for MSE" option and copy and paste it into this thread and let's see what suggestions we can make. It's all fixable though, bear that in mind. 
    Yes this is correct.the consolidation did pay everything off but due to being out of work some was accrued again.
    No household debt as such.
    It was more me paying mortgage etc while out of work & also attempted to launch a business during this time which should of remained a side hustle & that swallowed up a large chunk.

  • enthusiasticsaver
    enthusiasticsaver Posts: 15,326
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    I would do a full soa (there is a link in my signature).  If your partner covers food etc all those debts and other outgoings come to £2109 but I would hazard a guess that other things like mobile costs, presents, haircuts, entertainment, lunches (even if your partner pays for food) are all on top of that.  The full soa will show exactly what is going out not just direct debits which I am guessing is all you have detailed above. 

    Debt consolidation does not work in bringing down debt.  You need a root and branch review of your finances and how you  manage your money. Ideally you and your partner should work on it together. 

    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected]. All views are my own and not the official line of MoneySavingExpert.
    Link to soa: https://www.lemonfool.co.uk/financecalculators/soa.php

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  • EssexHebridean
    EssexHebridean Posts: 20,877
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    Paying the mortgage while you had no income WAS household debt - if I am correct in assuming that the mortgage in question was for the family home? 
    🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
    Balance as at 01/09/23 = £115,000.00
    Balance as at 31/12/23 = £112,000.00
    SOA CALCULATOR (for DFW newbies): SOA Calculator
    she/her
  • hoverFrog1
    hoverFrog1 Posts: 47
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    As a general rule you pay off debts that are most expensive first. That's overdrafts, credit cards with high interest rates, etc. Also as a general rule, never convert unsecured debt to secured debt.

    Reduce your outgoings to pay off debts faster. For example you're paying £40 a month on an overdraft of £2500. That's £480 per year for a debt of £2500. You're probably never paying that debt off. Get rid of it as soon as you can. Do you pay interest on the credit cards and PayPal? If not, they are a low priority. If you do, pay off the highest interest first.

    I assume the loan is fixed? Just keep up payments and make overpayments if you can.
  • elsien
    elsien Posts: 32,297
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    Car servicing and maintenance?
    entertainment and going out?
    Birthday and  Christmas presents – presuming your wife doesn’t  buy her own and you buy for other family members as well?
    Etc. 
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
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