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

GeorgeUK

In short - the less interest you pay to the banks, the more money is in your pocket. I would still go with the 0% transfer idea, but talk this over with the wife and make sure she sees the FULL big, scary picture. She may not be aware of how much she is spending or what on, so a spending diary for both of you may be in order - just so you can see where the savings can be made.

10k in 36 months = 277 (say 200 without the interest) so she is spending about 600 per month on nothing?

She needs to find out what this nothing is and tighten the belts for a few months.

splishsplash

I would stick to the balance transfer plan, split it between two cards, and you'll have it cleared within the interest free period.
Still... it doesn't tackle the underlying problem...
Are you sure your forecasts are realistic? If so, you must have noticed a certain lavishness about your lifestyle over the past couple of years?
I would still post your SOA for suggestions.

saffronflowers

Just wanted to add my support to you and your wife, you still sound very angry towards her but that is not surprising, I have been there and I was furious!!! However that said, I just had to put it behind me and promise myself not to bring it up again and that we work on it together.

I have learnt that taking control is not the key to sorting it out, it brings a barrier between a couple. Also as others have said please post your SOA, but cos like dieting you cant cut everything out and succedd!!!

I also agree with going down the 0% route and getting them paid off and my usual Pollyanna style - when you have done that you can put the monies to your nest egg and increase it quicker (blessing in disguise)!!!!

As others have said there will be a trigger somewhere that started this it is worthwhile trying to find out and being empathetic. When ever I get a knockback on my budget such as my car supspension deciding to pack up and even though I have the money saved I get really !!!!ed off cos I cant have what I saved for and sometimes just think Bu$$er it. Sadly I am so DF that I dont!!!!

Hug

SFx

climbgirl

shocked wrote: »

On the other hand it looks like we'll have easily upwards of £500 even on a bad month to put towards the debt. Does that change anything, or stick to the transfer plan?

Thanks again, your advice is invaluable right now.

Definitely stick to the transfer plan - the lower the interest rates, the better! Regardless of whether you transfer or not, you will need to chuck as much money as you can afford at these debts per month. You say you've got £500+ a month surplus, that's great. If you pay the minimums on these debts it will take you years to repay it and cost you a lot more in interest over the years. Read Martin's article on it here:

http://www.moneysavingexpert.com/cards/minimum-repayments-credit-card

If you do transfer to a 0% deal, they usually stay at 0% for 12 or 18 months, then you start paying interest on them again. So you need to repay as much as you can before the interest kicks in.

One other thing, maybe your wife should start a spending diary. Write down EVERYTHING she spends (and you too if you want!) for a whole month. Every last penny. It really helps clarify where it's all going.

Buffythedebtslayer

Hi Shocked! glad to see you are still here,

I would pay off the debts under two hundred pounds - keep things simple! and feel better that its one less thing to worry about.

Egg are doing 0%, so are M and S and I don't think they are linked to your current cards, Egg are actually very good.

Although what George UK said about MBNA has been true in my experience they tend to have higher levels for Balance transfers.

I have to say I spent money just cos it was there - well I had the credit available. I have junk that I now sell on e bay. its a bit sad really but I do feel I have learnt my lesson. sitting down and working it all out was scary - as in the money I had simply frittered away. I don't do that now!!

in fact now I am obssessed with checking my bank and moving money!

Good Luck
xx

Soprano

shocked wrote: »

Until a few years ago, I used to do a forecast/expenditure every month. I fired up that spreadsheet and did an average month's money flow and although there are some figures that change every month, it looks like there is a £700 surplus every month.

That means two thing, firstly not only has she been spending money we don't have thanks to CC companies, but she's also been frittering away a rather large monthly surplus. My fault for not keeping track of things.

On the other hand it looks like we'll have easily upwards of £500 even on a bad month to put towards the debt. Does that change anything, or stick to the transfer plan?

Thanks again, your advice is invaluable right now.

Stick to the plan and transfer the money. Its real easy to do so.

Once one of her cards is cleared, I would close it down. This should make it easier for you to get another on in the future should you need one.

duchy

Wow you have come such a long way in 12 hours !!
I really hope that now you can see a route to take that things will calm down and the two of you can really talk about how you got to this point and what needs to change to make sure it doesn't happen again. It's all about communication. I'm sure there is trust to be rebuilt too.
I'm guessing you don't want to post your SOA but I would suggest you look at other posts where people have for ideas to cut the budget so there is more money to throw at this debt more quickly so it can be cleared under the 12 or 18 month 0% period-things like shifting utilities to a cheaper provider and insurances-and getting cash back as well as a lower monthly cost . Same goes for things like broadband/phone/cable often it's cheaper to buy them as a package. The utilities forum will be useful to you. Another huge area is food-you don't have to drop standards just be more savvy about what you buy. The important thing is that you both work together and it's a joint enterprise and one you both do with a spirit of willingness.
Definitely transfer the big card debt and pay off the small debts and then start to move forward again. Once you are doing something pro-active you'll start feeling much better about it and it changes from a frightening mess to something you both now control. Good luck !

Adrasteia01

Hi,
Just a thought - if she is unable to get new cards, or as an option, she could ring up her credit card companies and ask for her limit to be increased (on a card with a lower APR or good balance transfer rate) then if they grant it, transfer over balances from other cards and close them. I'd say it's likely they'll be willing to do it. They might also be willing to offer a lower balance transfer rate.

That being said, if she increases her limit there's a danger she might spend more on the cards, so you would want it to be for balance transfers only!

That being said, 0% deals are obviously going to be better. If she's going to go for a 0% card, I'd suggest taking the longest deal possible.

welshgirl78

Hey, some excellent advice here and well done for trying to sort it out and be supportive.

Would it be possible for Mrs Shocked to also come on MSE and read some some of the threads and articles? There are some amazingly wonderful debt stories here and it may help her see that you can work through this together and also help her face up to the over spending? If you are taking control of everything then it might not break the habits that have got you here in the first place?/

Perhaps she could have a separate username and come on privately, that could help her work through some of the realisations that others have made?

Sorry if this sounds horribly bossy / sticking my nose in etc - is meant as a positive suggestion to help you both move forward.

GOOD LUCK with everything xxx

lazy&indebt

If you are not used to having credit cards or any debt and you want an easier life, I would suggest opting for a low 'life of balance' promotion. This means you can shift the debt onto a card (sometimes without a fee) and pay a low apr (usually between 4% and 5%) until it is completely cleared. If you can throw £500 per month at it, it should take you between 18months and 2 years to clear it.

Of course you could always pay half of it off with your savings and transfer the other half - it'll reduce the debt down to around £5,000 and leave you with a fair bit of your savings that you can start to build up again after? Going on the £500 per month thing, that means you could clear the debt in 10 months and rebuild your savings in another 10 months...