Debt advice please help!

[Pleashelp]

So DH has managed to owe 10k on credit cards. We earn a decent salary between us (70k), maybe we have lived beyond our means the past few years but we are now struggling with the repayments. If anybody has been in this situation please help.

Unless your DH is on board and prepared to analyse and change his spending habits, all of this advice will be useless.

I know this was addressed to someone else, but I will answer with what I do. I do use them, but I follow the advice given when I first received them in the 1980's, which is to pay the whole balance off every month by direct debit.

Step change are great. But before that I would sit down and work out all your bills. All the must haves. Mortgage/rent, council tax
, food etc.

See what’s left over. If theres more than enough left over, stick to budgets and keep paying as much off as possible. Transfer to 0% cards if possible.

If there’s nothing/not much left over then do go to step change. Step change are fab they really helped me when I was a single parent and low income and was left in debt by exh. They froze the interest and reduced my payment by loads. But it doesn’t impact your credit rating. So if you can do it yourself, I would do that.

Yes. I put the weekly shop on a credit card and pay off in full every month.

Debt advice covering all options is a regulated activity (providers regulated by the financial conduct authority).
www.fca.org.uk/firms/authorisation/process/debt-managers

Get advice from stepchange, citizens advice or another organisation giving free debt advice. You need to look at all the options.

Don't panic - it should be possible to manage this with your income.

1. List your income and outgoings - check you have enough to live on and don't actually need to continue to amass debt. If needed commit to lifestyle changes.
2. Check the interest rates on your current cards
3. Check your credit scores (for free)
4. Do a soft search through one of the many comparison sites to identify if there is a lower (or 0%) card you can move to
5. Pay a manageable amount of the cards each month

Strongly recommend the Martin Lewis site, stepchange etc.

I also pay off credit card debt every month.

But it doesn't really matter what we do, does it? You (plural) are the one with the debt to dolve so not mak

Posted too soon.
Not making more debt is priority number one: cut up those cards.

And take the rest of the debt advice you've been given. 10k is manageable, you just need a proper plan and stick to it.

There are very few circumstances where converting unsecured debt into secured debt is the right move.

I agree with the posters above about going over to MoneySavingExpert and seeking advice there. The most important thing though is understanding how the debt built up in the first place and then changing those behaviours, and more importantly, the mindset. It’s easier said than done! Because if that doesn’t happen, even if you do make some changes and get get the cards paid off, then you’ll only end up back here again down the line.

I’m sure you can get this sorted though. Lots of people with a lot worse have, so it’s definitely doable.

Remortgaging to pay off unsecured debt would be a terrible move at the moment.

You are correct but like I said its just another option. None of us here know OPs true financial circumstances, neither is it our business. She was just asking for opinions.

Everything being said, the only people qualified are debt counsellors OP who will go through a detailed income and expenditure with you, discuss your circumstances and a 'needs statement'. Once they have the facts, they'll recommend the best course of action. Google stepchange, give them a call and you can have this boxed off in a week with an arrangement in place.

Good luck! It'll be sorted in no time.

Yes, sorry, I wasn’t very clear. I know you were just trying to give options, and of course, that is one. And sometimes that is the best one to follow, as you say, depending on individual circumstances.

i suppose the point is I was trying to make, is that it’s very unusual to be the best option for the majority. It is an attractive option though, when you’ve got high unsecured debt repayments and a long slog ahead of you to get it sorted out. Converting it to secured can seem like a quick fix, and therefore is an easy and understandable trap to fall into.

I wouldn't agree that a qualified debt counsellor always is needed for the OP (and others) to get things sorted. Many people do manage to get their situations turned around by themselves, following good advice from places like MSE. I was one of them. Considering the potential consequences though, I do agree that converting unsecured debt to secured and potentially risking your home, is one of those circumstances where you should.

Absolutely @DomesticShortHair you're right.

Surely MSE have a budgeting tool somewhere or @Pleashelp if you're handy with Excel, that's a great place to start. Helps to see the numbers in front of you. It's definitely first place to start 🙂

Never. But I fucked yo when I was younger and ended up on a dmp with step change.

That's not right, you can get a DMP

@Afterfire Sure for real for a lot of people but you'd be surprised you know! People still come to me for consolidation and its right for some, not for others. Everyone's situation is unique and it's certainly not a one size fits all. That's why it's so regulated! 🙂

I put everything on my credit card and clear it every month. Move it to a 0% card and pay it down asap.

So DH has asked for a break from the payments for 3 months but we are going to pay what we can afford into it still. Going to cut back massively and hopefully see the difference. Everything is just so expensive at the min and we are struggling on a decent salary so I can’t imagine how others are getting by

That sounds like rather a drastic step that could have significant implications on your credit rating. Are you sure things are that bad? Or do you/he have other loans, car payments etc?

Have you done a budget to see what things look like on paper? How much is your mortgage/rent and do you have other high essentials like childcare or car payments?

With your income, you should be able to pay it within a year. Don't worry. I think you seriously need to review your budget, to see where you can save, and your husband MUST STOP BUYING.

You couldnt possibly know that without seeing her outgoings, even on a high household income most people wouldnt have an extra £900 per month to pay off a debt

I agree, it my well be the best approach, but does seem drastic because it will affect your credit profile.

That is often an issue, because it can limit your options. For example, it may mean that you won’t be able to apply for any 0% balance transfer cards or offers, which could have saved you interest in the debt.

Again, just like with the secured and unsecured debt, there’s normally several routes to take, but some of them are definitely better than others. It’s important that you consider all your options thoroughly, so you can make the right decisions for you. You’ve had some good advice for resources to help you on here already, I’m sure there’s more to come. Good luck with it.

The one piece of advice from my own debt journey that really stuck, was that you didn’t overspend 10k all in a night (unless it was a bad night in Vegas), so clearing it will also take a long time. So be patient, and accept you’re in it for the long haul. But with application and the right approach, you’ll get there.

Will it continue to accrue interest or is the current balance frozen? How will not paying help if you plan to still do so.

We were in a similar situation a few years ago, slightly higher household income (£80k) Only the debt was around £28k 😬 😬 We got everything on 0% interest, set ourselves strict spending limits every month and cut back on nights out. We got rid of it in 4 years. Honestly OP, you can do it and it’ll be fine ❤️

Even so, it is still manageable to pay it back. It might take two years, but 100% doable. It's not million pounds.