Debt Stressed

PaulBowhill

Getting a bit worked up and stressed has led me to this forum.

33 and married, and as of 4 weeks ago have a 4 year old and a 4 week old. 

We have around 15,000 worth of debt which has slowly been accumulating over the last four years, this is generally spread across a Tesco credit card which has the balance cleared off every month (usually around 1500, no issue) and then we have a Halifax 0% card up until 2025 - this pays off the minimum each month, but isn’t accumulating any interest. 

The additional debt is on a Barclaycard which sits at around 4500, which is accumulating some interest per month (about 50.00) - The largest part of this debt is that its actually work expenses, my work requires us to have an expenses claim back procedure. 

We’ve stripped back on spending to bare essentials only, but id quite like to merge the Halifax/Barclaycard debt so that its all in one place, but sadly don’t have the balance available to do this on the Halifax card. 

Is it worth applying for another 0% card and shifting all of the balance to this, or just adding the maximum budget possible to Halifax and waiting out the rest? 

Never quite got to this situation before but I think a combo of new babies and some slightly lapse spending has gotten to this point.

Thanks for your input.

sourcrates

Your namesake "Paul Bowhill" is an ex bailiff that used to work for DCBL (those chaps on the telly).

He now runs a pub just down the coast from me, little village called Kilnsea, right at the start of spurn point.

Anyway, I digress, your debt, you can try another 0% deal, but that might not be possible, could be a case of just knuckling down, as any kind of arrangement will report negatively to your credit file.

Can you increase income at all?

RAS

There is a soft check tool on MSE for those looking for 0% deals. No harm looking and applying if there's a chance. If unlucky, wait another few months and look again.

Do you have anything about the house that you can sell? If you can start reducing the outstanding on the Barclaycard it would do you and your credit record good. Even £200 could create a virtuous cycle. 

And well done for spotting the issue now rather than when you are facing £15-20k debt as is often the case.

Do you have any sort of emergency fund. Or a budgeting account for items you can pay annually at a cheaper rate rather than monthly at a premium?

Veteransaver

Interested how a significant part of your Barclaycard debt is work expenses. How often do work reimburse you or is it a case of you need to fill in your expense forms? If they are genuine work expenses then you shouldn't really be expected to bank roll the firm, they should settle your expenses promptly or give you a company credit card.

MattMattMattUK

PaulBowhill said:

The largest part of this debt is that its actually work expenses, my work requires us to have an expenses claim back procedure. 

On this point, how is the debt work expenses, surely you incur the cost, submit an expense claim and are reimbursed? 

TheAble

MattMattMattUK said:

PaulBowhill said:

The largest part of this debt is that its actually work expenses, my work requires us to have an expenses claim back procedure. 

On this point, how is the debt work expenses, surely you incur the cost, submit an expense claim and are reimbursed? 

The reimbursement will come back as cash though. Possibly op didn't use this cash to pay off the card.

enthusiasticsaver

It sounds like you need to be more disciplined about paying the work expenses off the card once reimbursed and maybe having a closer eye on your budget.  Presumably you or your partner are on maternity/paternity leave so presumably the income will rise again at some point?  In the meantime if you can move  the Barclaycard to another 0% deal I would do that and pay slightly above the minimums on the Halifax.  I don't think you will get all £15k (Is that £4500 on Barclaycard and £10500 on Halifax?) on one card so just focus on getting the Barclaycard debt moved to 0% to save the £50 monthly interest.  As soon as you can really focus on trying to repay the debt once your income rises again.  If your partner or you are not going back to work so no likelihood of your income increasing soon then it is even more important to get your budget on track.  Doing an soa will help us to advise further. 

Lonelygambler

Before you open anything, be smart be honest have a budget. 

Then look at the 0% offers

PaulBowhill

Thanks for comments. There is a few beacons of hope in the form of end of year bonus which usually equates to about £6k, which will move a large chunk off my shoulders in one go.

We have isolated a few areas which are non essential and will continue to work on a plan.