50k on credit cards all out of 0%

thisisthecount

I’m in a bit of a pickle now, I am making and affording the minimum payments each month over 6 credit cards and there’s about 50k balance across them all, ought 1k split amongst them all. Is there a good idea to start to get these consolidated? The interest is probably outweighing the minimum monthlies.

i am self employed and i used them to inject money into my business. Business is though atm, 

Grumpy_chap

thisisthecount said:

I’m in a bit of a pickle now, I am making and affording the minimum payments each month over 6 credit cards and there’s about 50k balance across them all, ought 1k split amongst them all. Is there a good idea to start to get these consolidated? The interest is probably outweighing the minimum monthlies.

i am self employed and i used them to inject money into my business. Business is though atm, 

The best thing to do would be to visit the DfW (Debtfree Wannabee) area of these forums and prepare your SoA (Statement of Affairs).  Templates are available at the DfW forums - the lemonfool template seems to be favoured by many.

The SoA will then set out your budget and income in a clear format and show an overall picture of your financial position.  It may show you a solution.
If it does not immediately show you a solution, then share the SoA in the DfW forums and people will provide you with advice on where efficiencies may be available.

You have not mentioned your income levels or any capital (savings / assets) you have, but have you used an online tool such as entitledto and assessed whether you are able to claim any benefits?

On-the-coast

You need to clarify a few things first.  

When do the 0%’s expire? 

And how is the interest exceeding the minimum monthlies if they are all zero % ?
if consolidating, how likely are you to be given £100k total credit? (Beware consolidation unless you’re very disciplined)

Brie

As I understand it the minimum payments must be at least as much as the interest or a bit more than that so that each payment cuts into the principle owed.  

Is there no 0% BT offers on any of them at all??  I used to do a merry go round with mine - MBNA > Barclaycard > Tescocard > MBNA.

TheSpectator

To be blunt, you are more than "in a pickle".

You are looking at some form of debt relief plan or a quick career change to increase your income. Anything else is kicking the can down the road.

horsewithnoname

On-the-coast said:

You need to clarify a few things first.  

When do the 0%’s expire? 

And how is the interest exceeding the minimum monthlies if they are all zero % ?
if consolidating, how likely are you to be given £100k total credit? (Beware consolidation unless you’re very disciplined)

Clue is in the title, the 0% have all finished now. 

fatbelly

Better on the dfw board. I've requested it to be moved. Consolidation is unlikely to be the answer

thisisthecount

THanks all so far for responding, here's some more info: 

Roughly around 60-80K per year for me & Wife around £36k
No assets apart from home all paid for
I attach all the cards I have in total, first column is the balances atm and right column is the total available.

Grumpy_chap

thisisthecount said:

THanks all so far for responding, here's some more info: 

Roughly around 60-80K per year for me & Wife around £36k
No assets apart from home all paid for
I attach all the cards I have in total, first column is the balances atm and right column is the total available.

So, over £100k joint income and low housing costs.
This £50k debt is possibly not as bad as it seems.

The first thing to do would be sit down with your wife, agree that the debt has to go and it means a bit of belt tightening pain in the short term to get there.  

Once you are both agreed, close all the credit card accounts with zero balance and cut up all the credit cards with live balances so you are not tempted to spend on them.
Then put your SoA together and look for opportunities to make efficiencies and bring that debt down.   
Focus on the debt with the highest interest rate first.  Once the debt starts to come down, the benefits will snowball.
It is not a conventional solution, but a £50k re-mortgage might be a way to reduce the cost of these debts and clear them far quicker.  Others may comment on the wisdom of such a move in this case.  Comment will be better informed if your SoA is shared.

What were you spending on to reach £50k CC debt given high income and no mortgage?

thisisthecount

they were being used to inject funds into my business basically. We're not able to make larger payments atm as the business is tight, hence why I can't make larger payments. 

Grumpy_chap

thisisthecount said:

they were being used to inject funds into my business basically. We're not able to make larger payments atm as the business is tight, hence why I can't make larger payments. 

OK - so (and I don't mean to be harsh or condescending) the first thing you need is honesty.
Are you or are you not earning (salary equivalent) of £100k between you and your wife?

thisisthecount said:

Roughly around 60-80K per year for me & Wife around £36k

What is your business structure?  Ltd Co or sole trader?
Do you have a business plan?

Do not re-mortgage your house to fund a business.