50k on credit cards all out of 0%

NeverendingDMP

I agree a soa would be a better way of figuring out what you can and can't manage monthly as once you need to add up all the minimums it would probably explain a lot of your income away. I'm not self employed so don't know the ins and outs but are you paying yourself a monthly wage as it were then using it to pay all these debts. If so a soa would make things clearer. 

QrizB

NeverendingDMP said:

I agree a soa would be a better way of figuring out what you can and can't manage monthly as once you need to add up all the minimums it would probably explain a lot of your income away

Minimums are usually not more than 2.5%? So £1250 a month on £50k of debt? That's not going to make a very big dent in £7k pm take-home, which the OP claims they have.

A proper SoA would help everyone here, I think, including the OP.

I don't think anyone has shared this link yet?
https://www.lemonfool.co.uk/financecalculators/soa.php

thisisthecount

Just to clarify, I’m not in a position to pay more as money is going back into the business from both sides, sorry for not clarifying it. I’m also having to reduce my salary down now to help the business 

enthusiasticsaver

If you are unable to pay more than minimums and the debt on the cards are not going down due to the interest charges then you may be looking at some sort of debt solution like a DMP.  Like others I was sceptical about the income given you say you are not in a position to overpay the cards to get the balances down and it looks like all your money is going into propping up the business. So you may wish to consider defaulting and once these are all defaulted you can then either contact stepchange or self manage a DMP.  This has the effect of stopping interest and setting an affordable monthly payment to be split across the cards but it trashes your credit record. A consolidation loan will not help even were you  to be agreed one. 

cannugec5

thisisthecount said:

Just to clarify, I’m not in a position to pay more as money is going back into the business from both sides, sorry for not clarifying it. I’m also having to reduce my salary down now to help the business 

So, with all due respect, we return to the basic question of what actually is your current household income? 

Without that piece of information no one can give sensible advice on how to help. 

RAS

So essentially, on paper you are receiving an "income", which you are then re-investing in your company, leaving you short of money to service the existing debts that you've built up investing in your company?

It sounds like your personal and business finances are hopelessly entangled and you need to talk to business debt line to find help disentangling them? Perhaps they can suggest a Small Business Advisor or an accountant. Not least as the tax situation needs sorting.

What debts does the business have? Separate from director loans?

The other thing that sings for me is that you personally have c£50k debt on consumer accounts but £120k credit available in total. I can't see consumer credit companies offering new accounts to someone who already has a spare £70k in credit available. You need to close the unused cards.

Grumpy_chap

thisisthecount said:

Just to clarify, I’m not in a position to pay more as money is going back into the business from both sides, sorry for not clarifying it. I’m also having to reduce my salary down now to help the business 

This is a breakthrough!
Only a few posts up, there was still an insistence that you were drawing a real income of £60k - £80k per year from your company, which was met with incredulity by others reading the thread:

thisisthecount said:

The 60-80k is real. Essentially I take out how much I need. Not sure why you don’t think it’s real? 

At least, now, we have established that the £60k - £80k is not the real income.  The money is simply being drawn on paper and then recycled back into the business.  (Depending on how the money is being drawn, the on paper drawings may be giving rise to a tax liability now that could be avoided.)

Can the OP now make a clear statement:
 - What is the monthly amount that the OP is earning / drawing from the Ltd Co. net of anything that is recycled back into the Ltd Co.?
 - Is the OP's wife earning the £36k per year from another organisation, or is this also recycled drawings from the OP's Ltd Co?

Can the OP prepare their SoA?

I also think it would be wise to put the credit cards with available balances to spend beyond use.  

noitsnotme

This thread is painful to read!

*edit* perhaps if the OP wants help, they should provide the information asked for by others.  Not just drip feeding bits of info.

kimwp

Is it useful, is it kind? If not, consider a re-word or just not posting it.

enthusiasticsaver

I agree that you need to disentangle the business from the personal income/debts. Are you on top of the tax situation as that is a priority creditor? 

Is the business still viable?