massive debts can anyone offer some advice?

[realitygone]

Hello;

DH and I decided we need to sort our finances out we are both pretty terrible with money, we cope brilliantly when we have none but when we do have money not so much.

So I got both of our credit reports and worked through all the debts / cards we have and between us we have a total of £20,000 debt. £5000 of that is an over payment of taxcredits

we have a credit card each which we want to pay off, and not lose them as I think it is going to be impossible for us to get another,

we cannot get any loans to pay anything off, definitely don't want to go bankrupt

We have £280 a month which we have worked out can go towards repayment, so can anyone advise where we should start?

The credit cards we have are minimum payment or full balance only so how would we do that?

Should we prioritise? What's most important?

We are going into the bank to join our accounts to make justone account as we both get money at different points soit gets frittered.

Any advice would be much appreciated

If it was me Id tackle debts in order of their interest rate, highest first and minimum payments to everything else til first one is paid off, then on to next highest interest rate.

Have you done a full budget? Trimmed back everything non essential? Meal plan to get your food budget down?

Come join us on the debt support thread...lots more advice there

YY to paying off the most expensive first. Set them all up on minimum payment dd so you don't miss anything and then make an extra payment at the end of the month with what you have leftover.

You do need a full budget so that you don't get surprises, eg MOT, car tax etc.

I wouldn't join your finances if you both have bad credit. It should be easier to repair without having to prove that you're both being better in the long run.

Thanks for the replies

we are joining finances as it will be much easier to see what we have with it going into the same pot.

I have tables done, of income, outgoing and debts / things we don't pay

meal planning I do as I cook for 6 most nights (childminder)

we looked at a consolidation loan for £15,000 to pay it all off which worked out at £280 over 5 years with interest so really thats how long this should take

I am going to print off bank statements off both accounts to see where the money is going

Do your credit cards really only allow you to pay either the minimum or the full balance? I've never heard of that before (though am no expert)-can you phone the companies and ask them to allow you to make different payments as suggested by the other posters on here-eg minimum to all but the highest interest, as much as poss to that until it's gone, snowball?

They are high interest (vanquis and capital one) the problem we are having is the minimum payment isn't doing anything ideally we would like to pay them off over two months (each) but it seems they don't allow it

My husband has a vanquis card and can pay off as much as he wants over the minimum. Definitely ring up and check :)

Just set up a standing order or bill payment and pay what you can afford. I've never heard of such limits on repayments and Ive worked in a bank for nearly 20 years ...

Its just what they told dh when he called them to set up bigger payments. Will definitely be ringing back

They will tell you that to make more money out of you...ignore and up repayments as much as you can

Thank you, we will get onto that :-)

Vanquis are really sneaky telling you that.

I wish we had never applied for the card to be honest.

reality
come and join the Debt thread number three : have a look at the links in my opening post
and yes, for changing the payments on a card, NEVER EVER discuss it with them.
Cancel the direct debit.
Set up a standing order for an amount you can afford and leave them to go away.
Internet banking is your friend

Thanks talkin, I will head on over for a look.