Newbie - Admitting Debt

too_much_debt

Hi

I registered yesterday after surfing around the site for a couple of weeks and thought I would write down all my debts and hopefully get motivated to paying them off as soon as possible. My debts are: £13,829.30 (not including £700 owed to bf).

My situation first, I am in my late 30s, living with partner, we have two children (girls) and are expecting another baby in 5-6 weeks time.

I am self-employed and sell on Ebay (part-time at the moment) am trying to keep it going as long as I can but will have to stop in a few weeks.

My bf pays all the bills, mortgage, water, electric, council tax etc. (we have separate bank accounts)

I pay out each month:

£57.04 Endowment for interest part of mortage (was my Endowment when I had my own house before meeting bf).

£20.00 Life Insurance

Self-Emp NI: 8.80

I was buying the food (doing Tesco on line orders) but have stopped now and just buy as I need from Iceland up the road or Coop, will try Lidl.

My income is:

Child Benefit 120.80 (will go up soon and when baby is born)

Child Tax Credits: 41.76

Ebay money (March): 630

I also do cashback sites.

My debts (credit cards):

Barclaycard 5,061.93 6.9% life of balance

LloydsTSB 4,114.61 0% until May 16th then 17.9%

A&L 1,173.02 2.9% until November

Nationwide 479.74 17.9%?

M&S &more 3,000 7.9% for two years (just transferred)

I pay out about £400 a month off my credit cards depending how much I've made on Ebay and how much I have in my account. I've been paying the minimum on the A&L and Nationwide, not sure which ones I should pay off first, have just transferred to the M&S so haven't had a statement yet.

Any advice would be gratefully appreciated on which ones I should pay off first and should I try and transfer more to the Barclaycard (if they still have the 6.9% offer with no handling fee) when the Lloyds one is due to revert to 17.9%?

Just to add, I don't want to transfer to 0% as I've been doing that and 3% has just added more debt onto what I already owe, I cannot get a credit card as I don't have a regular income.

Thanks in advance, hope I've done this right.

RAS

I am going to quote chappers here

I'm not a new man or anything but I find it unbelieveable that in this day and age some men still think they can go out to work and hand over money to their wives and that is the end of their responsibility.
Marriage is a financial contract as well as an emotional one as those that have been through divorce will testify to, your families finances are both your business. I have married friend at it still amazes me when one of them says to the other have you got that £30 quid you owe me for the phone bill or whatever.
Combining your resources not only gives you both a sense of being in control but gives you the flexibilty to sort out hicups in your finances when they occur and prevent them turning into major disaters.

You need to start living like a couple of responsible parents, not like two people who happen to be sharing the same space.


You need to do a joint Statement of Affairs and then if you really do not have the money between you, you need to contact one of the debt charities and see what your options are.

too_much_debt

Thanks for the reply.

Don't get me wrong, he does buy plenty for the kids etc, he buys food as do I, he pays our daughter's Playgroup fees each term as we have to pay until she is 3, he doesn't have a problem with me asking if I need anything as he knows I earn from Ebay. He did MOT my car and bought two new tyres, I feel better if I can pay for things myself which is why I went self-employed to sell on Ebay.

My cards need paying off and I want to do it myself as quickly as possible so I'm glad that he pays all the bills so I can concentrate on my cards, I'd much rather be putting my money into savings than paying it to building societies/banks.

Just I owe on 5 cards and it gets confusing which I should try and pay more on first.

Bunnyinthelights

TMD,
Have you seen the Snowball Calculator?

Jenna

TMD - if not, it's www.whatsthecost.co.uk

If you put your debts in "interest order" then it will tell you which one to pay back first.

HTH

too_much_debt

I tried the calculator out, got a bit confused though as some of my debts are at lower rates for a few months/years and it didn't adjust for it, but I get the jist of it, just going to throw every penny I can at paying the ones with highest interested first. Also my Barclaycard is 6.9% for the life of the balance but it wouldn't let me put that.

I'm looking forward to seeing how long it will take me to reduce the debts.

StressedSteph

Hi TMD

I must admit, I never understand families that don't have a main family joint account and pool all their resources into that. I just feel life would be very complicated keeping it separate and there is always going to be one with more available cash than the other and thats just unfair.

Anyways....I have about 4 cards and I started with the highest interest card. In your case the Nationwide one, it also has the lowest amount you owe, so would make you feel good quickly when you have gotten it cleared (and cancelled ).

Then I would move onto the Lloyds card as I bet the interest free period would have finished by then. Then I would review the situation and see if you need to do any new balance transfers etc.

Congrats on the imminent arrival of your new baby, its an exciting, expensive period for you, but hopefully you will be able to use alot of baby stuff you already have from your previous kiddies, and you will be able to have a MSE baby :-)
Take care hun
xx

too_much_debt

I actually don't mind having seperate accounts, I prefer to have my own money that I've earnt myself and it's not as if I have to contribute to the bills as he pays them all, he doesn't ask me for money.

Selling as a Business on Ebay is my job inbetween looking after the kids and it's a hobby as well which I love doing and it keeps me sane after looking after a 2 year old and 3 year old all day, I can't get a part-time job or evening/weekend job as my bf works shift work and works 2 weekends out of 4.

Thanks for the congrats on our baby. We have most of the stuff already and my mum has bought some white babygrows and vests and stuff, just need a few things.