0% credit card deals ending - sick with worry

KeinGeld
KeinGeld Posts: 6 Forumite
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in Debt-free wannabe
Hi everyone 

first time posting and I have had a good look through the other really helpful threads. I have £15 on two credit cards both on 0% deals which are coming to an end on 1 April and end of July. My credit rating is just ‘OK’ and I do not think I am going to be eligible for any other deals. 

My husband and I separated 4 years ago and setting up again on my own has bern tough so I have over relied on credit cards and loans. I have two loans (£600 pm) coming to end end in the next 12-18 months then I can throw everything at paying my credit cards off, but the thought of them increasing to 26.8% APR is making me ill. 

I have really tried to avoid going on a DMP or defaulting as want to pay back my debts myself and am also scared as my mortgage deal ends Oct 2026 so that will go up by hundreds. 

Does anyone have any advice of what I should do for the best? 

Comments

  • KeinGeld
    KeinGeld Posts: 6 Forumite
    Name Dropper First Post First Anniversary
    Sorry - £15k 
  • RAS
    RAS Posts: 34,910 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    I'd suggest a few things. Check the credit section here and use the soft search facility to see if you can balance transfer to anything cheaper than 26%.

    Do a full Statement of Affairs, so you and we can see if you are in trouble, or if you can refocus your budget to clear this quicker. Format for MSE if you are comfortable sharing. It would also help to know a little about your circumstances?

    Mean-time also check round and see if you have bought things you no longer use and could sell? 
    If you've have not made a mistake, you've made nothing
  • tigergambit
    tigergambit Posts: 130 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    edited 15 March at 10:50AM
    Hey, this is not unsurmountable, stop the worry train.

    First thing you need is to take a long hard look at your finances and commitments. Fill out the Lemon Fool statement of affairs and post it with a few more details of your circumstances (kids, living arrangements etc, etc) and the experts will be along soon to advise. 

    Have you actually tried to get a new 0% deal?

    You have come to the right place, an honest SO A will allow others to help you separate the wood from the trees and find you a way out.
  • KeinGeld
    KeinGeld Posts: 6 Forumite
    Name Dropper First Post First Anniversary
    Thanks so much for your kind and helpful replies. I have 2 kids, earn £56.5k (promoted 2 years ago thank goodness, debt was accrued before this when I earned ca.£15k less).

     I really want to pay my debts back myself and am ashamed and sad I am in this position and have not told my family about my situation. Divorce was not something I planned and I overspent the first 2 years in order to make a nice home for my children and to take them on holiday to escape my misery. 

    I will complete the SOA today, really appreciate your support. 


  • ManyWays
    ManyWays Posts: 1,016 Forumite
    1,000 Posts Fifth Anniversary Name Dropper
    I have really tried to avoid going on a DMP or defaulting as want to pay back my debts myself and am also scared as my mortgage deal ends Oct 2026 so that will go up by hundreds. 
    You need a plan that will work not just now but also next October. A SoA is the best place to start, can you include your current mortgage interest rate on that and also the names of all the lenders. 
  • Brie
    Brie Posts: 14,093 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Agree about doing the SOA but also want to suggest you check the cards you currently have and see if there's any 0% offers with them.  Sometimes cards will offer you something as you come to the end of one deal.  Or there might be a money transfer deal at 5% for 2 years or similar - anything as long as it's better than 26%!!!

    AND do have a check of your credit history to see if there's anything there that might be a stop on you getting a new card or a good remortgage rate - easy one is ensuring you are registered to vote but also aren't using lots of other credit as in phone contracts, house insurance, overdraft.
    I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe and Old Style Money Saving 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 forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

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  • KeinGeld
    KeinGeld Posts: 6 Forumite
    Name Dropper First Post First Anniversary

    Household Information[/b]
    Number of adults in household........... 1
    Number of children in household......... 2
    Number of cars owned.................... 1[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 3401
    Partners monthly income after tax....... 0
    Benefits................................ 460.8
    Other income............................ 0[b]
    Total monthly income.................... 3861.8[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 750
    Secured/HP loan repayments.............. 450
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 128
    Electricity............................. 75
    Gas..................................... 75
    Oil..................................... 0
    Water rates............................. 145
    Telephone (land line)................... 0
    Mobile phone............................ 44
    TV Licence.............................. 14
    Satellite/Cable TV...................... 20
    Internet Services....................... 44
    Groceries etc. ......................... 450
    Clothing................................ 75
    Petrol/diesel........................... 150
    Road tax................................ 14
    Car Insurance........................... 52
    Car maintenance (including MOT)......... 50
    Car parking............................. 50
    Other travel............................ 0
    Childcare/nursery....................... 0
    Other child related expenses............ 0
    Medical (prescriptions, dentist etc).... 20
    Pet insurance/vet bills................. 54
    Buildings insurance..................... 48
    Contents insurance...................... 0
    Life assurance ......................... 120
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50
    Haircuts................................ 50
    Entertainment........................... 0
    Holiday................................. 100
    Emergency fund.......................... 0[b]
    Total monthly expenses.................. 3028[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 310000
    Shares and bonds........................ 0
    Car(s).................................. 1000
    Other assets............................ 0[b]
    Total Assets............................ 311000[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 163000...(750)......0
    Secured Debt.................. 7000.....(450)......0[b]
    Total secured & HP debts...... 170000....-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Credit card 1 .................7750......0.........0
    Credit card 2..................5980......0.........0[b]
    Total unsecured debts..........13730.....0.........-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 3,861.8
    Expenses (including HP & secured debts). 3,028
    Available for debt repayments........... 833.8
    Monthly UNsecured debt repayments....... 0[b]
    Amount left after debt repayments....... 833.8[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 311,000
    Total HP & Secured debt................. -170,000
    Total Unsecured debt.................... -13,730[b]
    Net Assets.............................. 127,270[/b]
  • ManyWays
    ManyWays Posts: 1,016 Forumite
    1,000 Posts Fifth Anniversary Name Dropper
    You said you have 2 loans paying 600 a month, they arent listed in your SOA (unless you have added them together as that "secured" line, which says £450 a month?) 

    Guess the credit card minimums may go up to 400-500 a month. Which on that SOA looks just about affordable? But how realistic is the zero in for other child costs? 
  • tigergambit
    tigergambit Posts: 130 Forumite
    Part of the Furniture 100 Posts Name Dropper Combo Breaker
    KeinGeld said:

    Household Information[/b]
    Number of adults in household........... 1
    Number of children in household......... 2
    Number of cars owned.................... 1[b]

    Monthly Income Details[/b]
    Monthly income after tax................ 3401 Support from your Ex included?
    Partners monthly income after tax....... 0
    Benefits................................ 460.8
    Other income............................ 0[b]
    Total monthly income.................... 3861.8[/b][b]

    Monthly Expense Details[/b]
    Mortgage................................ 750
    Secured/HP loan repayments.............. 450
    Rent.................................... 0
    Management charge (leasehold property).. 0
    Council tax............................. 128
    Electricity............................. 75
    Gas..................................... 75
    Oil..................................... 0
    Water rates............................. 145 This is very high - please check. If you are not on a water meter get one!
    Telephone (land line)................... 0
    Mobile phone............................ 44
    TV Licence.............................. 14
    Satellite/Cable TV...................... 20
    Internet Services....................... 44
    Groceries etc. ......................... 450
    Clothing................................ 75
    Petrol/diesel........................... 150
    Road tax................................ 14
    Car Insurance........................... 52
    Car maintenance (including MOT)......... 50
    Car parking............................. 50
    Other travel............................ 0
    Childcare/nursery....................... 0 Really - you never have a babysitter?
    Other child related expenses............ 0 No clubs or trips ever?
    Medical (prescriptions, dentist etc).... 20
    Pet insurance/vet bills................. 54
    Buildings insurance..................... 48 High?
    Contents insurance...................... 0 You must have this
    Life assurance ......................... 120 High
    Other insurance......................... 0
    Presents (birthday, christmas etc)...... 50 Seems very low
    Haircuts................................ 50
    Entertainment........................... 0 You never go out or have a coffee or ice cream with your kids??
    Holiday................................. 100 Low
    Emergency fund.......................... 0[b] You need to have something in here
    Total monthly expenses.................. 3028[/b]
    [b]

    Assets[/b]
    Cash.................................... 0
    House value (Gross)..................... 310000
    Shares and bonds........................ 0
    Car(s).................................. 1000
    Other assets............................ 0[b]
    Total Assets............................ 311000[/b]
    [b]

    Secured & HP Debts[/b]
    Description....................Debt......Monthly...APR
    Mortgage...................... 163000...(750)......0
    Secured Debt.................. 7000.....(450)......0[b]
    Total secured & HP debts...... 170000....-.........-   [/b]

    [b]Unsecured Debts[/b]
    Description....................Debt......Monthly...APR
    Credit card 1 .................7750......0.........0
    Credit card 2..................5980......0.........0[b]
    Total unsecured debts..........13730.....0.........-  [/b]

    [b]
    Monthly Budget Summary[/b]
    Total monthly income.................... 3,861.8
    Expenses (including HP & secured debts). 3,028
    Available for debt repayments........... 833.8
    Monthly UNsecured debt repayments....... 0[b]
    Amount left after debt repayments....... 833.8[/b]

    [b]Personal Balance Sheet Summary[/b]
    Total assets (things you own)........... 311,000
    Total HP & Secured debt................. -170,000
    Total Unsecured debt.................... -13,730[b]
    Net Assets.............................. 127,270[/b]
    I'm not sure where in the country you are but your CT implies you have a smallish home yet your water rates suggest you have a swimming pool! You have a great income and your debts are not really out of control. I don't really see why you shouldn't get another 0% deal. The real question is why the SO A looks quite healthy yet you don't appear to be saving money. There are a few areas where you can save but also a few where your spending seems unrealistically low or dangerously absent. Take another look at this - be realistic, not aspirational.

  • enthusiasticsaver
    enthusiasticsaver Posts: 15,993 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    As the soa shows a healthy surplus (albeit you have not put in minimum payments for credit cards) and you have no savings I am assuming the soa is aspirational rather than accurate?  Of course you could have been overpaying the credit cards but make sure that the figures are actually what you have spent rather than guessed.

    Areas to be cut down on 
    Insurances - are you using comparison sites to see if you can get them cheaper?
    Water rates are extortionate. 
    Groceries is high for one adult and two children 
    Internet charge is high as is mobile phone so look at whether those are in contract and try to get them lower elsewhere. 

    You need to put something in emergency savings so you do not have to resort to credit cards. 
    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 forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

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