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.

The break is to take the pressure off Christmas, I feel like a fraud saying we are struggling, but we really really are

Not sure how to say this nicely, but you can't keep taking payment holidays every time you get an extra (and in the case of Christmas entirely expected) expense.

We don't know your circumstances, but it's highly unlikely that you will be able to pay the debt back whilst not making any tangible changes to your lifestyle. At some point you'll have to do some bullet biting!

Please don't ruin your credit rating so you can 'do Christmas'. It could have significant implications for your finances for years to come.

It might feel miserable to have to cut back on spending at Christmas, but nowhere near as miserable as 6 years of having a bad credit rating and the expense and frustration at being refused cheaper credit products like 0% credit cards that will help you get out of debt will cause.

Have you done a budget? Do you know where your money goes? Unless there is something you haven't mentioned, or your other fixed essential outgoings are unusually high, £10k debt on a £70k income shouldn't be causing this much difficulty and should be repayable in well below 5 years with a little bit of cutting back.

If you can, get an interest free card to transfer too.

Every now and again, we go cold Turkey for a month.

it means clearing out the cupboards and seeing what we have to eat, putting stuff to sell on eBay that we don’t use, get all the jobs done around the house that we have bought the stuff to do, but never done it, painting mainly.

The thing with credit card debt is, you don’t spend all the money really, partly it’s interest that accumulates.

write a list of your expenses for the next month, work out a menu using what you have in the cupboards to eat and both of you don’t spend anything, a few months time, this will be a memory

Good luck

I don't think having a payment holiday is a good idea , your in dept because you didn't face up to not being able to afford things. So you need to face facts you can't afford the Christmas you want .
Nows the time to look at your finances and set a budget. Not kick the can down the road until after Christmas.

Another vote for stepchange. I went from being suicidal to having an affordable amount paid by DD each month which they distribute. They saved my life.

Don't feel like a fraud. You will be fine <hugs> I second the advice to contact stepchange. Unless you feel like you have enough power to talk to your creditors? I know I wouldn't, but people are different.

What does he mean? Was he feeling guilty because he was spending money you (as a family) didn’t have? If so, he should have been telling you this. Or was he buying stuff for himself during these shopping trips and it’s built up?

Like other posters, I would suggest firstly understanding how the debt built up (going back through credit card statements), seeing what the money was spent for, and asking your DH why he let it build up without telling you earlier. Next, review your existing budget to see how much you are spending each month (including monthly amounts for all those ‘one off’ things like new clothes and shoes, haircuts, birthday presents, kid’s activities, Christmas costs), then see where you can cut back so you’ve got more money available for the repayments.

Then, maybe think about how to organise your finances so this can happen again eg: a joint account for all household costs (mortgage, bills, childcare, child - related costs), then your own accounts for personal costs (mobile phone, personal spends). It sounds as though your finances are separate and you weren’t aware of these additional costs?

So this can’t* happen again.

How will this information help you?
Some people do, quite sensibly - to earn points/rewards but pay it off in full. Some people use them badly and get into trouble.
Make sure you understand why the situation has occurred and stop those behaviours. Then move them onto 0% if possible and get them paid off asap
And don’t do it again

Pressure off Christmas? Please ensure if you are spiralling into debit you are budgeting now and completely rethinking how you celebrate Christmas and not incurring more debit while interest continues to accrue on your cards.

That means 0 or token presents for each other, tell family you cannot afford presents and if dc then cut right back. Do not put off changes for another 3 months, the cost of living is going to get much worse before it gets better.

Oh it was when I spoke to them <shrug> or maybe I'm misremembering.

DMP will still leave a mark on your credit file that you really don't want if you have a mortgage.

I used to work for a debt service. Make a financial statement. Martin Lewis will have one. Creditors will likely contact you for payment and because it's a non essential debt they shout the loudest. You have to pay c.tax, tv licence, energy bills and mortgage/rent. Once they contact you demanding money, send them the list you've made and suggest a minimal payment. They will then write back to you, tell you it's rubbish and to contact stepchange or the CAB. Who will send them the same thing you did which they have to accept, but this will buy you time to come up with a plan. You must stick to the minimum payments. You might find that they 'sell' the debt on and you start getting threatening letters from other creditors you need to politely but firmly tell them to do one and send them the financial statement. They sometimes send official looking 'solicitors letters' but if look closely these are usually based in the same office
Unfortunatey they will use intimidation tactics, but it is totally fixable even though it might take some time!