53k in debt and finding ways of helping

Smudgeismydog

Thanks for posting your SOA, a couple of things stand out;

• is your partner able to increase her income? More shifts or overtime?
• Electricity looks high, why do you think this is?
• Mobile phone is huge. How many phones does this cover, and are you in a contract?
• Groceries can also be trimmed, I do appreciate there are 5 of you in the house, but things like meal planning, batch cooking and shopping with a list could definitely reduce this
• Internet and entertainment also look high, could there be savings here?

It’s really important to put some money away for an emergency fund, life happens and having a rainy day pot stops you adding to your debt.

Your rent is really reasonable, so with your household income, this should feel a lot more uncomfortable. Have you identified how you’ve accumulated debt, and are you committed as a family to make changes to address it?

You can absolutely do this, but it’s going to take time and discipline.

Grumpelstiltskin

Are all of your children old enough to understand money? If so you must involve them, the sooner they learn that money doesn't grow on trees the better.

Grumpelstiltskin

Also you cannot keep a current account with a banking group you owe money to, the reason is they can take money from your current account without asking to go towards the debt.

Your wife has to forget liking a certain bank you need to have accounts with banking groups you don't owe money to and that don't have an overdraft.

It is all or nothing you can't treat one debt different to all the others.

Are you sure your wife fully understands the situation and is fully on board?

It does need a complete change of mindset by all the family, you can't do it on your own.

Also when you do change current accounts do not use the switch system or it can cause problems.

ManyWays

The Lowell debt is not your top priority, but you should ask them to produce the CCA agreement for the debt. Because there is a decent chance that they will not be able to, in which case the debt is "unenforceable" in court and Lowell can not get a CCJ for it. So you can stop paying that one.

The government may be going to remove this right soon, so do this now, even though it may not seem urgent to you.

This link explains more and has the exact template you should use for the letter to send.

Credit agreements | Getting information | National Debtline

RAS

https://forums.moneysavingexpert.com/discussion/comment/82057691#Comment_82057691

I've realised since writing this that some of the debts (Evlo) are in your wife's name? Which complicates things.

Absolutely the first thing you all need to learn is that the solution to debt is NEVER taking out another debt account. That's not only both of you but also your eldest who may well follow your long-term example and regret it massively in a few years.

Do you have any joint accounts with your wife? If so you need to sever the link.

Firstly that may protect your wife's credit record, depending how much is yours, hers and joint.

Secondly if you stop paying any sole debt with a banking group with whom you also have a joint account with your wife, the creditor can offset. And that Virgin account is now part of the Nationwide group, for example. So being nice to Nationwide may not be an option.

You need 10 posts before you can edit the SOA or any other post, so make a few replies. It would help to know the age of your children.? I seriously doubt you are clothing 5 for £50 a month even if the adults are on knickers and socks budgets? Do you have contents insurance?

You need to sit down together and go through the list of creditors together, his, hers, joint. If you are the sole or main "owner" of the debts, then you might be able to protect her credit record. If you've both got debts, or a lot of joint debt then you are going to both have to seek debt remedy.

Which ever your wife needs to realise that you've jointly not only got to reduce your spends to balance the budget, you've each also got find money to pay off the debt. And you've going to be falling off the benefit cliff very soon, so plan now. What are you eldest's plans after this summer? How much are you going to lose when they age out of benefits?

So manage the kids' expectations starting now. And your wife needs to smell the coffee urgently You have to roll back on the big birthdays this year. Not least as if you pay for a big production this year, the younger ones will expect the same, or massively resent the fact that they didn't get the same attention.

A few short replies will help. I'd not worry so much about the APRs. It's obvious they are going to be horrendous. Not least as that Lowell default is already a red flag.

In order to devise a strategy, you would help to edit the list of debts proving the ownership details.

Do check debt camel for details on affordability claims. And down the line, you'll probably also get discount offers so you can clear this up within the next 6 years.

bazdvd

you say your name isnt on the tennancy agreement and you are down as living with parents.

Has or is your wife claiming benefits as a single person?

Stuckformoney86

https://forums.moneysavingexpert.com/discussion/comment/82058008#Comment_82058008

My partner’s hours are dependant on the needs of the business but she is friends with the boss so there is a chance for increased hours, she just can’t show favouritism.

I suppose electricity is high because we have a viv for our beared dragon. Kids always on consoles etc but I can review the amount.

We all have mobile contracts and our youngest has a tablet.

The aim is to work on the grocery budget as it includes weekly shops and extras.

Internet is fixed until later this month as our contract is up and we can get a better deal.

Entertainment I’ve included some subscriptions Netflix, game pass, Spotify, uber one etc but there are savings to be had.

A lot of the debt was accrued during Covid as my Wife wasn’t working and wasn’t getting anything and I was on a basic wage.

If I commit to this there will be no credit cards or my overdraft to dip into.

I have been going over our budgets with my wife and we can do it.

Stuckformoney86

https://forums.moneysavingexpert.com/discussion/comment/82058146#Comment_82058146

I have a bank account with an overdraft and we also have a shared bank account with the same bank with no overdraft. We access it through the same app as we can use both.

I have checked our credit report and the only liked thing is that account so I could close it of all the debts hers is only Frasier plus and Evlo all the rest is in my name and not linked to her.

My eldest is currently in college and working.

My children are 8,15 and 17.

No contents insurance or life insurance only pet.

RAS

I'll respond later, but please sort out enough contents insurance to cover your household and personal goods. Don't underinsure as they'd probably refuse to pay out anything. You may not be able to afford replacement by new but anything's better than nothing.

And look a simple 10 year term life insurance for you and your wife, unless you've got good cover from work and pensions.

Grumpelstiltskin

You say the 17 year old is in college and working? Are you still paying for their phone? If so tell them from now on when you get their bill every month they have to reimburse you and tell them from their 18th birthday you will try and get the bill in their name.

All the stuff like Netflix etc. you don't need so cut as much of that as possible out.