Good income but but can't get out of debt

NorthEastFarmer

Hi, apologies if this is a duplication but I don't know where else to go, let me know if it is and I will delete.

5 years ago: I, wife, and new baby lived in accommodation provided by family business. Business changed due to a death. Family dispute, had to leave business. Had little savings due to being partner in business and business covering costs.
Had to take legal action to get money I was owed. Used all money to buy own house.

Now: Good income (~£5000pcm after tax) but lots of debt. Some due to bad management but house repairs / car repairs etc causing issues.

Mortgage: £850pcm (£191k left of £245k)
Credit Card: £500pcm (using 95% of it)
Personal Loan: £250pcm (£7,500 left of £10,000)
Car finance: £330pcm (ending now)
Childcare: £750pcm
Current account overdraft: -£4500

 Any help at all that means we don’t have to sell our house would be great.

TheMilkmansDad

I suggest you do a full SOA to see exactly where you're money's going. You can then identify what's going on and get a clear picture. Only then can anyone offer any advice/assistance.

RAS

You start where you are. 

The first thing is to organise a new basic bank account (no credit check) or look at Monzo or Starling. If you've got debt and your partner doesn't make sure the account is on your sole name. 

What's the situation with the car, do you now own it? When does the debt end and is a balloon payment due?

If the current OD is on a joint account and you stop paying, the bank will go for your wife.

Is the personal loan with your current bank? Any of the cards?

Does your wife work? 

We really need to see a Statement of Affairs to understand, and for you to understand, how much you actually need for essentials; house, CT, utilities, transport, food, clothing, insurance.

For starters, get that new account organised, check banking groups and stop paying any credit cards that are not owed to your current banking group.

You will be able to get a new fix with your existing mortgage provider, but not to get a new deal elsewhere until this debt situation is fixed.

Please don't rush into anything else, particularly an IVA and not even a DMP until you've had more help from people here. 

sourcrates

The SOA link is in my signature (stoozing.com) you need to list all your income, and what you spend money on.

It could be just better budgeting will help you out, otherwise as a homeowner you have two other choices for debt solutions, either an informal debt management plan, or a more formal insolvency solution, such as an IVA, but keep in mind IVA `s are only for homeowners with massive debts, that could not otherwise be cleared in a reasonable time frame by a DMP.

The aim is to cover all expenses you may encounter during the average month, inc some savings, so that you can see how much actual disposable income you have left with which to pay down this debt.