need to get a better handle on finances - where to start?

enthusiasticsaver

I would cut back on presents too. If you can manage to use that spare £500 to pay off the debt it would be gone in less than a year. I would tackle that catalogues then the credit cards. Close them down too. 

theoretica

Could you take on the dog grooming?

Grocery cost - I find it useful to keep track of what are the more expensive meals (and snacks!) and what are the cheap meals that I eat. It might be useful to your child going to university to work out together some very cheap meal recipes and work with you on finding cheap and nice snacks (eg make your own flapjacks rather than buying something).  This board has some threads with great ideas https://forums.moneysavingexpert.com/categories/old-style-moneysaving

Andyjflet

Always have an emergency fund, £500-£1000 is your aim, the whole point being you shouldnt fall back on your credit cards or you are never going to break the cycle, sorry this is bad advice, steer clear. 

kimwp

Andyjflet said:

Always have an emergency fund, £500-£1000 is your aim, the whole point being you shouldnt fall back on your credit cards or you are never going to break the cycle, sorry this is bad advice, steer clear. 

I said it was divisive!

My advice, (as well as making the most sense financially), aligns with the advice on the main site.

https://www.moneysavingexpert.com/savings/pay-off-debts/

Yes, there is the psychological aspect of getting into a mindset of not relying on debt, but using the savings to pay off the debt will pay it off faster (and thinking about it, be the mindset of doing everything possible to get rid of the debt). Then the amount that was going to the debt can build the emergency fund up again.

Jemma01

Andyjflet said:

Always have an emergency fund, £500-£1000 is your aim, the whole point being you shouldnt fall back on your credit cards or you are never going to break the cycle, sorry this is bad advice, steer clear. 

If she's not taking up more debt, then the interest is!

elsien

There isn't a hard and fast what people should/shouldn't do in these circumstances. It's what works for you and your mindset. If you are able to control the credit card spending and just keep them for emergencies (as opposed to all the stuff in the budget that should be accounted for) then that's fine.
If it's the start of the spending slippery slope then it may be better not to go there.
Each to their own, having weighed up the pros and cons for their circumstances.  As someone said earlier. 

RAS

nomoneymoreproblems said:

Car Insurance........................... 89.17 is this for 3 cars, or just one? Where is the car tax, and maintenance costs? this is for 2 cars, those arent due this month
Other income............................ 1090[b] Is this the 50% of bills partner "gives" you?  £100 of this is from child
Groceries etc. ......................... 650 still high. You really need to cut this even if for some months. I will try. 
Other child related expenses............ 66. what is this? £50 for a hobbie and £16 for a new uniform item they need for summer term.
Pet insurance/vet bills................. 182 this is very high, is this an old debt or just monthly insurance? its insurance x 2 groom x 2 and a bag of dog food
Life assurance ......................... 34 what sort of cover do you get from your employments? Have you double checked that you can't get cheaper can't get cheaper due to pre existing illness. its critical care and life insurance combined.  

Entertainment........................... 200 you simply can't afford this at the moment we have our family holiday (UK) this month so this is our spending money

Emergency fund.......................... 200 and you need to reduce this in the short term. long story but this has to be replaced this month. 

You are going to need to remortgage with your current provider as you can do that without any further credit check. - this is not possible they only offer one product which is expiring. so we have no choice but to move company. which leads into your next point, yes we have 0% available to us BUT we don't want to apply for any more credit while we are waiting to remortgage. 

you might think some of the categories weren't enough but my car tax is £20 a year, a new tyre is £45, I don't have have to pay for services relative owns a garage), I don't often pay for parking, we don't spend money on new clothes often, these are all the figures gathered from looking at statements. 

the remainder of my partners wage is spend on their car (HP) and child maintenance. I'm happy with the way we pay the bills. They have no other debts. 

yes the 3rd car is my childs which they pay for. they are going to University from September and can live off their loan and part time work. 

thank you for taking the time to reply, it was really helpful. I am willing to change our lifestyle but its already pretty bare bones with us constantly saying no to treats, events, days out etc as we can't afford it. I try and pay above the minimum on the debt where I can. 

Thank for the explanations; your replies prompt different thoughts.

Glad you've got a tame car maintenance person,  it's a huge help. 

And sorry about the mortgage situation.

I'd suggest the first thing you do is go over to the Mortgage and Lending section on MSE. There are several very experienced and helpful mortgage advisors there.

Tell them the house value, outstanding mortgage, incomes (and number of children, CMA liability) and current provider. Explain the value of the debt and the APRs (£x at less than 30% and £x at over 40%) etc. Ask if they can advise on whether they think you can re-mortgage easily and whether reducing the high level debt will help. They may need additional information, but they aren't selling their services just offering help.

Once you know whether reducing the high APR debt will help, you can start to develop a strategy.

However the APRs on catalogue debts are so high, you need to get them pad and closed anyway.

A few thoughts on cutting the highest APR debt.

1. The obvious. Get everyone to look out the stuff they bought and don't use/wear. Check for decent car boots and an adult and child are available, head over and sell as much as you can. Pay the net, after reimbursing yourselves the petrol and fees, towards the highest level store card.

2. The very very disciplined, if it's possible.  What are the limits on your three credit cards? If you've got spare capacity on them, you could transfer the highest APR debt to the lower rate credit cards , providing you are very disciplined. By essential items (petrol, food) on the credit card, then immediately transfer the same amount from your bank account to your highest APR debt. 

Once you get past your holiday, anything that you might put into an emergency fund needs to go to clear the highest APR debt.

3. Once you get the highest APR debt clear, adjust your DDs on the credit cards to pay a tiny amount above the minimum, even if it's only a £1. Once creditors see you aren't paying the minimum you become rather more attractive and might get balance transfer offers.

kimwp

I'd say this (from the post above) should be step 1:
Adjust your DDs on the credit cards to pay a tiny amount above the minimum, even if it's only a £1. Once creditors see you aren't paying the minimum you become rather more attractive and might get balance transfer offers.

nomoneymoreproblems

thank you I don't pay the minimums I always pay at least £10 over. I'm feeling motivated and today was pay day so a fresh new month to get things on track 

Sncjw

Can I just ask you say that the money your partner gives you is listed on there so I assume he has extra money. I am assuming the money you put down for you in all your income. Surely tp help you then your partners full income should be taken into account not just yours.