Wife Confesses £10,000 CC debt, help please.

Buffythedebtslayer

http://www.moneysavingexpert.com/cards/lowest-interest-credit-cards#deals

read that. it might help if you decide to go the 0% interest rate.

I have got a M and S card they are on 0% at the moment. and cards you don't use will sometimes do you an low level of interest for balance transfers.

to be honest I wouldn't give over you life savings. with 0 % interest being VERY possible it would be better to pay it off like that.

xx

shocked_2

I do not understand the numbers so I'll just copy them all...I do not see APRs anywhere...?

Card 1 : lpf (?) £1,778 purchase annual rate = 27.9% Cash Annual Rate = 37.9% Interest on Cash balance 2.717% Interest on standard balance 2.075%

Card 2 : Nationwide : £5,718 merchandise interest at 1.385% Cash interest at 1.737%

Card 3 : Tesco : £1,255 interest rates : Purchases 1.527%, Cash 1.873% and balance transfers 1.658%

splishsplash

Wow, it took me so long to type that out that it's all been said already. However, we all seem to be on the same track!

ianian99

spend your life savings on baling her out and she'll probably just do it again!!!

Mupeteer

Although it sounds harsh I agree with ianian99. She needs to face up to what she has done and should work to pay off her own debts, even if you pay first and she pays you back.

And please, cut up her cards. You'll be doing her a favour in the long run.

Buffythedebtslayer

shocked wrote: »

I do not understand the numbers so I'll just copy them all...I do not see APRs anywhere...?

Card 1 : lpf (?) £1,778 purchase annual rate = 27.9% Cash Annual Rate = 37.9% Interest on Cash balance 2.717% Interest on standard balance 2.075%

Card 2 : Nationwide : £5,718 merchandise interest at 1.385% Cash interest at 1.737%

Card 3 : Tesco : £1,255 interest rates : Purchases 1.527%, Cash 1.873% and balance transfers 1.658%

don't take this as gospel but

Card 1 - APR 27.9 for purchases (please God she didn't borrow cash from it cos that is SO high at 37.9) but good balance transfer rate?

card 2 - 1.385 permonth so X 12 (months) = 16.62% per year.

card 3 - 1.527 per month so X 12 = 18.324% (better)

now the rule goes pay off the highest interest first, but I would look for a good balance transfer rate and move the debate to one or two cheaper cards.

I really hope this helps and that I have worked it out right!

xx

kcmatt79

shocked wrote: »

I do not understand the numbers so I'll just copy them all...I do not see APRs anywhere...?

Card 1 : lpf (?) £1,778 purchase annual rate = 27.9% Cash Annual Rate = 37.9% Interest on Cash balance 2.717% Interest on standard balance 2.075%

Card 2 : Nationwide : £5,718 merchandise interest at 1.385% Cash interest at 1.737%

Card 3 : Tesco : £1,255 interest rates : Purchases 1.527%, Cash 1.873% and balance transfers 1.658%

Difficult to tell from this, as this is just standard bumph telling you the charges for every customer. If you can't find the APR anywhere, write down how much the interest is on each card.

shocked_2

splishsplash wrote: »

Hi Shocked,

• Do you and your wife have any joint accounts, and is your mortgage in joint names? (In other words, I'm asking if there are any financial associations between you and your wife)
• Is your wife earning? Has she been making regular repayments? What kind of interest rates are the cards carrying? Has she defaulted on any of them?
• What is the likelihood of you or your wife being accepted for 0% or low life-of-balance cards? You could balance transfer the debt to stop interest accumulating, and it would give you both some breathing space while you come to terms with what's happened and figure out a plan of action.
• What has the money been spent on? Is there an underlying problem that needs to be dealt with, or just some poor judgement? £10,000 in two years is a significant amount of spending - is there anything to show for it?
• What's your general financial condition like at the moment? Are you both able to set and stay within realistic budgets based on your current income(s)?

In the same order.....

We have a joint current account that both salaries go in to, and we have a joint mortgage.

She has been paying "the minimum", she says, the statements do not have APR written anywhere, but I have posted the %s I do see in the post above. They are not defaulted, just at the limit from what I can see.

If I can transfer the whole lot to a zero percent I suppose that would make sense.

What has the money been spent on? Beats me, all I can get out of her right now is "clothes" and nights out. However, she has not had much of either from what I can see so goodness only knows. I'll get to the bottom of that and steps will be taken to address the spending, but it is clearing £10,000 now that is on my mind.

Until I heard of this CC debacle, the only loan we have is the mortgage, I do not believe in spending money I don't have so even though I am 40, I have never had a credit card. How ironic is this.

kcmatt79

Crossed posts, sorry.

I'd agree with trying to get 0% cards to transfer to. Without sounding harsh here, if she has her own salary, she should be repaying them. Why not do the transferring for her (as she's been honest here), get them all at 0%, then tell her the minimum she needs to pay each month to get anywhere near clearing them.

Buffythedebtslayer

well they say opposites attract I guess.

Does she work? I wold bet she feels dreadful. I mean I feel pretty crap and I only have myself to worry about!

xx