Credit Card debt issues

Yellowpinky2791

Hi all not quite sure where to put this post as it crosses different category's.
I usually flip my CC's every 12 months from one promotional rate to another just paying off the minimum payment as its all i can afford with having 2 teenage lads now swinging the hinges off the fridge on a daily basis and the cost of living.
This is now not an option as the promo rates haven't materialised this year and after adding up all the cards its about 25k spread across 6 or 7 cards with some still on 0% and some not.
Virgin is 12k and has gone from 100 a month to 275 which just isnt sustainable in my current situation.
i have a mortgage of 105k on a house worth 450k so on that side of the fence i'm in a good position.The problem i have is my mortgage lender won't add the CC debt to my mortgage and i get no offers of bank loans to consolidate the debt on price comparison websites.
I want to pay the cards off and clear my debt but can't seem to find an option.I'm worried about actually speaking to the CC companies as i think they'll automatically start giving me bad credit ratings which will have a negative impact on remortgaging in dec 2027
My wife won't go down the route of a secured debt as she's worried we'll lose the house.
I have until April 2027 until i can take 40k out of my private pension to clear everything up but need to get to that date with my credit profile in a healthy position.
I've just taken a 6 month interest only payment break from my mortgage which is all you can take now apparently..If i could to take interest only until April next year then i'd be fine so do you you think that can be extended.Halifax saying 6 months is all i can have?Thanks for any help with my position.

ProcessMatters

You’re right to be cautious, but speaking to the card providers doesn’t automatically trash your credit file as long as you keep paying at least the minimums. Credit damage comes from missed payments or formal arrangements, not from asking for help.

Given your equity and the 2027 remortgage target, the priority is stability rather than optimisation. You may find a temporary breathing-space arrangement or reduced APR on the non-0% cards buys you time without locking you into anything.

It’s also worth talking to a free, non-commercial debt adviser (not a consolidation firm) just to sanity-check options — that alone doesn’t affect your credit file.

Kim_13

Taking a payment break from the mortgage now is not going to help with what you may get offered in December 2027, as it will stay on your credit file for 6 years. More than the 6 months standard interest only would be a reportable arrangement by the sounds of it.

The most obvious one is to speak to the teenagers and explain that there is no money for extras until April 2027. Overtime/extra job/ask the teenagers for a contribution?

MEM62

The DFW boards are where you need to head. If you cannot maintain the minimum payments then you are looking at a DMP. This will have a negative impact on your credit standing but it is difficult to see how this is avoidable. The positive is that it puts you in control of your budget. Re-mortgaging with your current lender is probably the best way to go when the time comes as you have history with them.

Tacking unsecured debt onto your mortgage should be avoided at all costs as it puts your home at risk. (Your wife is right here) Also, taking money from your pension should be a last resort. Pensions are for retirement - not dealing with current debts. Essentially this would be robbing your future-self of retirement income - something you will live to regret.

The positive is that there is a way through this as there is a solution for almost all circumstances. It might not feel like that now but get some good guidance from the DFW boards and the light at the end of the tunnel will appear.

Martico

This thread on the Debt Free Wannabe (DFW) subforum is a great place to start before posting your own thread there. Folks on that subforum will probably want to see a Statement of Affairs (linked in that thread I think) before offering non judgmental advice

ManyWays

Can we see a list of your debts?
In fact a full Statement Of Affairs would be better - that includes a list of your income, expenses, debts and assets. Please include the lender names, not just "CC1". Our preferred format is here: https://www.stoozing.com/soa.php

Its very sensible fo your wife not to want to get a secured loan.
And using pension money is best avoided too.
So lets have a look at your other options!

RAS

You and your wife need to spend a weekend with your statements and go through them with a fine toothcomb.

List what you are spending now and work out if you can cut any of the spending, as in review all DDs and look for cheaper. Also consider what can go on vinted etc.

Do not secure debt or raid pensions.

You need to sit down together with the teenagers and explain that the good times have gone. Not only will there be less in the future because you as a family can't afford what you've been spending recently, but because the banks aren't as friendly, you'll all have to cut back your expectations until a good bit of the debt is paid off.

It's a perfect opportunity to teach budgeting and to explain that holidays have to be paid for. If bought on tick, they bite you in the bum, eventually. And wearing more clothes and cutting back on utility bills is necessary going forward.

Check David Copperfield for Dicken's quote on spending more than you earn.

EssexHebridean

Your wife is correct - you ned to view the inability to get the debt added to the mortgage as a lucky escape, too. It's almost always a terrible idea to convert unsecured consumer debt to something which can lead to you losing your home.

Consolidation very rarely works - so again, put that out of your mind. As a rule it just means the debt costs you more, and frequently ends up increasing in any event.

RAS gives good solid advice above. i would add that while you're going through all your spending, you may as well put together your Statement of Affairs as mentioned earlier in the thread - it's incredibly helpful to have everything set out in one place and will enable you to see if you are able to continue to swim, or if in fact you're sinking and need to take more drastic action.

Don't fret about remortgaging - that's a bear and a half away, and you have an issue to be dealt with now. Worst case is to continue with a new deal with your current lender so that's always there as an option in any event.

Do you know how the debt has arisen? That's key to sorting things out. Second key thing is are you actually paying it off - if the amount owing getting smaller year on year, or is it increasing?

Well done for facing the fact that you need to tackle this - that honestly is the hardest step. Now comes the work to get the SOA and from that a budget to live by, and then getting the family on side to start tackling things once you know how to go about it. You don't need lump sums or quick fixes to sort this - because the chances are all that will lead to is you ending up back i debt in the future - what you need is a robust budget, everyone being on the same page, and a solid plan for paying debts down one at a time until they're all gone - at that stage, by following that plan, you will also be in a far better position for your financial future.