Do we have a problem?

Yes you have a major problem.

I say major because, even though you have so much debt, you were actually trying to extend your mortgage by £10,000 for further completely unnecessary purchases. If you carry on the way you have been, you will become bankrupt

I agree that you have a potential problem which you should avoid. Your morgage is £815 per month but remember that this could very easily double if rates rise (or any special deal expires). (Historically MY morgage rate hit 19%pa)

Your caravan: you owe £10,000 odd but it looks like you also take other holidays. You should be able to get holidays at £4,000 total for the family so your caravan is 2 1/2 holidays (but don't forget fuel towing the caravan plus campsite fees plus perhaps costs of crossing the channel). One OR the other but not both.
Two cars - I think the idea of a £2000 car each is optimistic - at that price reliability suffers; do you REALLY need two cars? Try to reduce the cost at least.
Credit cards - nearly £10,000 and some of it is interest bearing; pay off ALL the interest bearing part as an immediate minimum and desperately try to reduce the total into three figures.
General: pay off ALL interest bearing debt as soon as possible. Ensure that you never ever take on debt where there is a fee for early repayment.


The future: I LIKE that you are putting £100 per month into an emergency pot; think if it would cut your interest bill if you use that to repay interest bearing debt.
£100 per month towards university costs. GOOD but will it be enough. At today's prices tuition will be £36,000 (3x£6000 each) PLUS living costs which could easily be as much again.


DO make a list of jobs each of you could do if you lose your jobs; I did this before the company closed down - I had about 80 different possibilities using a max of £100 investment and bringing in £500 per week.
Watch the TV programmes about eating more cheaply; it works.
Good luck




Edit no 3. (!) Read, mark and learn every line of https://www.moneysavingexpert.com/family/money-help/.

OK so it was written for those whose outgoings exceed income BUT you should be able to save thousands to use to repay debts. Just the odd thousand off your grocery bill would help but there is far more on that page. Then look at the allied threads like the challenge on Frugal Living.


Edit no. 2 Once you get your debts down and as soon as possible ensure that you are putting the maximum possible into a pension pot or equivalent. You will need a big pot to bring in any realistic private pension - if you can amass £300K then with considerable care that should bring in £1K / month after today's taxes on top of any state pension. Do be aware that the rules change rapidly and the changes are almost never in your favour.


Edit no 1. Quite separate from our pension pot which has doubled despite drawing on it monthly, we put a redundancy lump sum into investments and have more than doubled the original amount and average 10% pa. income after tax Study this VERY CAREFULLY and run a dummy account before trying - you could easily lose money