Help please

booandboo

Hello I’d really appreciate some advice please. 

I’ve managed to accumulate a lot of debt , about 50-60k on credit cards . I was managing to pay and keeping interest down by balance transfers. But the last 2 years things have spiralled as both my children became ill and are now disabled. I had to give up work and we spend a lot on medical bills for them both as the NHS have no NICE guidelines for this illness so no option but to go private. I’m spending about 1200 on repayments which I don’t have so end up using the cards to buy groceries etc.
but now I’m getting no balance transfer offers and my cards are becoming maxed out.

I have just started back to work but can only do one day due to my children and caring responsibilities.
i contacted 2 of the card companies and they have froze interest for 3 months but now im panicking as the reality is kicking in I just cannot pay all of these.

my partner has about 25k on cards which is paid every month and we have a joint mortgage (no arrears)which im scared we will lose the house.

he isn’t aware the extent of my debts as I tend to manage the money.
We have discussed splitting and really are together to ensure care for our kids but I’d like to move out but I just feel so heavy and smothered. I have ADHD and always plan to call a dentist charity but just cannot do it. I know that sounds silly.
any advice welcome thankyou 

fatbelly

Follow this

https://forums.moneysavingexpert.com/discussion/6496941/in-debt-and-wannabe-debt-free-first-steps-to-take-are-here-please-read-then-ask-questions#latest

Emmia

booandboo said:

Hello I’d really appreciate some advice please. 

I’ve managed to accumulate a lot of debt , about 50-60k on credit cards . I was managing to pay and keeping interest down by balance transfers. But the last 2 years things have spiralled as both my children became ill and are now disabled. I had to give up work and we spend a lot on medical bills for them both as the NHS have no NICE guidelines for this illness so no option but to go private. I’m spending about 1200 on repayments which I don’t have so end up using the cards to buy groceries etc.
but now I’m getting no balance transfer offers and my cards are becoming maxed out.

I have just started back to work but can only do one day due to my children and caring responsibilities.
i contacted 2 of the card companies and they have froze interest for 3 months but now im panicking as the reality is kicking in I just cannot pay all of these.

my partner has about 25k on cards which is paid every month and we have a joint mortgage (no arrears)which im scared we will lose the house.

he isn’t aware the extent of my debts as I tend to manage the money.
We have discussed splitting and really are together to ensure care for our kids but I’d like to move out but I just feel so heavy and smothered. I have ADHD and always plan to call a dentist charity but just cannot do it. I know that sounds silly.
any advice welcome thankyou 

Hopefully you meant a debt charity!  But the link from fatbelly is good.

booandboo

Thanks both, Emma I did mean debt charity I didnt know how to edit it though!

ManyWays

Are you getting DLA for the children? Do the medical costs you have exceed this amount? 

kimwp

I was confused by the dentist charity as well ☺️

I'm sorry to hear about your children and your relationship, it sounds like a very tough situation. If you can't afford your debt payments, you'll need to stop paying them, but let's see an SOA first (link in my signature and the thread that fatbelly mentioned).

It's not at all silly to feel it's a big deal to call a debt charity, these things are tough and you are dealing with a lot. Sending virtual hugs - let's get this sorted.

Rob5342

It's not silly, I put off dealing with my debts for ages as I felt like I couldn't face it, but once I contacted Stepchange things really turned round and I was feeling much better about it within days. You don't have to phone them if you don't want to, you can do it all on their website and see the options available. Don't sign up for anything with them until you have had further advice here though as they tend to rush people into things.

booandboo

ManyWays said:

Are you getting DLA for the children? Do the medical costs you have exceed this amount? 

Yes We get DLA for both kids and I dont think medical costs exceed this now. Since Early 2024 we spent roughly 6k on my sons medical care and at least 3k on my daughters but now appointments are slowing down to bi-yearly I hope so will be easier

booandboo

Thankyou everyone I really appreciate everyone answering. Ive got the SOA

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 2

Number of children in household......... 2

Number of cars owned.................... 2[b]

Monthly Income Details[/b]

Monthly income after tax................ 800

Partners monthly income after tax....... 3000

Benefits................................ 1277

Other income............................ 0[b]

Total monthly income.................... 5077[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 1200

Secured/HP loan repayments.............. 0

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 153

Electricity............................. 240

Gas..................................... 0

Oil..................................... 0

Water rates............................. 44

Telephone (land line)................... 0

Mobile phone............................ 30

TV Licence.............................. 15

Satellite/Cable TV...................... 0

Internet Services....................... 40

Groceries etc. ......................... 900

Clothing................................ 150

Petrol/diesel........................... 300

Road tax................................ 24

Car Insurance........................... 110

Car maintenance (including MOT)......... 300

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 150

Medical (prescriptions, dentist etc).... 400

Pet insurance/vet bills................. 40

Buildings insurance..................... 0

Contents insurance...................... 28

Life assurance ......................... 88

Other insurance......................... 0

Presents (birthday, christmas etc)...... 100

Haircuts................................ 40

Entertainment........................... 0

Holiday................................. 0

Emergency fund.......................... 0

Car lease............................... 228[b]

Total monthly expenses.................. 4580[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 270000

Shares and bonds........................ 0

Car(s).................................. 2

Other assets............................ 0[b]

Total Assets............................ 270002[/b]

[b]

Secured & HP Debts[/b]

Description....................Debt......Monthly...APR

Mortgage...................... 187000...(1200).....4.84[b]

Total secured & HP debts...... 187000....-.........-   [/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

Halifax CC.....................10500.....250.......16.92

Lloyds CC......................6500......300.......27.39

Lloyds CC......................6075......236.......26.85

Partners % cards...............20000.....350.......0

Sainsburys.....................3000......70........20.8

MBNA...........................2000......50........4.9

Very home shopping ............1400......100.......0

Natwest CC part 2..............3000......0.........0

Natwest CC part 1 .............7500......100.......0

Virgin CC......................3300......75........20.01

Halifax overdraft .............500.......0.........0

HMRC...........................2000......50........0

HSBC CC part 2.................2700......0.........20.8

HSBC CC part 1.................1693......112.......0

Barclaycard CC.................8500......90........21.9

M&S CC part 2..................1000......50........28.9

M&S CC part 1..................1000......0.........0

Loyds business loan............1000......50........0[b]

Total unsecured debts..........81668.....1883......-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 5,077

Expenses (including HP & secured debts). 4,580

Available for debt repayments........... 497

Monthly UNsecured debt repayments....... 1,883[b]

Amount short for making debt repayments. -1,386[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 270,002

Total HP & Secured debt................. -187,000

Total Unsecured debt.................... -81,668[b]

Net Assets.............................. 1,334[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

Emmia

A couple of quick comments - £1200 a year on presents seems too high in the circumstances, similarly the clothing budget of £1800 annually would seem to be an obvious area to try to reduce.

The mobile phone amount could also be reduced - are you tied into a contract?

You've got no money for holidays though, or entertainment... 

Prescriptions also seems high, unless you're doing private prescriptions only? 

kimwp

Is car maintenance really £3600 a year or is that £300 the annual amount?