I need advice with credit card debts

[hugmeyt]

Good afternoon,

I feel like we are drowning in debt atm, and while I have now balance transferred mine to 0%, I just wanted some help as to where we are going wrong, while we ain't putting anything on the CC they ain't coming down as much as I would like!

If you’ve only just balance transferred, then you wont feel the balance coming down yet.

now you’re on a 0%, try and throw as much money as possible at them whilst you’re not paying interest.

interest rates on credit cards are bloody high! And if you only pay the minimum amount off each month, even though the minimum payment can be quite high, you’re barely paying anything off the balance, as the minimum amount is made up of 90% interest

Thanks @AHelpfulHand so we are around 8,000 in debt. Mine isn't coming down on minimum as I'm putting £200 a month on but it's still gonna take a while to do, my husband is only putting the minimum on his. I just wish we wouldn't have got these debts in the first place.

It will take 3 years 4 months at £200 per month. If you can pay £250 it will bring it down to 2 years 6 months, so it's not too bad.

The best advice is to try to build up some savings at some point that you can dip into when you need a new washing machine or some car repairs, then you don't need to use a card. You might want to cut the card up and dispose of it. I don't use credit at all after paying off £10,000. It's a good feeling. My partner had £15,000 and is now also debt free. It did seem to take a long time but worth it!

do you have more available funds to pay it down?

If so, when I had 0% CC, I payed the min but saved the same again in a savings account.

End of 0% period I’d transfer what I’d saved which cleared the card.

Could you look at your budget and see if there is anywhere you can cut down or get better deals on things? Martin Lewis's website moneysavingexpert.com is great for this. I have heard people say the You Need a Budget app is good, but this has to be paid for.

Or is there a way to bring in a bit more money by selling things you no longer need, eg on ebay or Vinted (clothes)?
It's good you are no longer putting stuff on the card, that's a great start. Don't beat yourself up about your debts, many people are finding life tough. I've done the same myself in the past, and shifted it all on to 0% deals, it gradually came down but probably we could have done it quicker if I'd made more of an effort.

Thanks all!

This is my list of income and outgoings, I haven't put the minimum credit card spend on there but obviously there is that on the outgoings

Income:
£1707.40husband
£1179.88 mine
£148.65 child benefit

Outgoing

Rent: £550
Loan family £130
Tv licensing £13.25
Water £21.00
Council tax £155.28
Energy: £165
Phone 1: £10.30
Phone 2: £24.04
Sky £66
Pet insurance £44.09
Car insurance: £33.84
Childcare: around £300-£350

Well if I have added correctly that seems to be just over £3,000 a month coming in, and around £1,500 going out, but there's a lot you've forgotten to put on your 'outgoings' list. Food and petrol are the most obvious ones but there's also road fund licence, car servicing/repairs, do you have house/contents insurance?, dentist, prescription charges, haircuts, clothes of course, presents at Christmas and birthdays, leisure activities, holidays?

Your rent is low, so that's good. Childcare fees can't be avoided,but as the dcs get older won't this reduce? The Sky bill is quite big, do you have Sky Sports? Look at when your current contract finishes and then it's time to haggle!

But honestly the people at the Martin Lewis website are much better than me at this stuff!

no way can you pay of £8000 at £200 a month in 3 years 4 months.... you only get 0% for a short time, then it bangs up to about 28% again, and you have to pay to move to the next 0% if you can.

do something about phone 2.

get rid of sky

will you family let you defer loan repayment for a year?

You have to start sinking £600.00 a month into paying off the debt and live very frugal for the next 12 months. It is possible.

Look at how long you have to pay off the interest free card, say 24 months, and calculate how much per month you need to pay. 8000 / 24 = 33 a month.
but first you need to pay off the card that has interest asap. If you only pay the minimum payment it will take years to pay off. That’s how CC interest works.
So, pay off the minimum from the interest free CC for now and pay as much as you possibly can off the other card.
How much does he owe on his card and what’s the interest rate?

Why is your husband only paying the minimum?Do you budget is there any way you can get extra money together?it will be a struggle so if it is impossible to pay your bills and pay off the cards you need advice from something like stepchange which is free.Don’t pay a company there is free advice.Is there anyway you can earn extra? You can do it.

We can't get rid of sky because in contract, phone 2 isn't mine (husbands, and I keep nagging him about that)

So I owe 2700 on mine and he owes about 5300 on his, but like I say his isn't interest free.

It's food and petrol that are next big spenders, we do live very frugally apart from takeaways but this month we are doing a no takeaway month so we shall see how that goes.

Thank you all for advice, im term time only and husband is shift worker, so no can't really earn anymore and with a nearly 2 and 5 year old it's hard with childcare,

can your husband shift hie to 0% interest as well?

Your income is fine and your rent is low, so you're lucky in that respect. It's just that kids are expensive!

Takeaways are an expensive habit, how often have you been having them? I'm not saying never have them, but could you reduce it to a once-a-month treat? I know what it feels like to not want to cook, but honestly ready meals are a good alternative to takeaways and much cheaper. Batch cooking is also a thing some people do, and probably more healthy. If you have the energy and time one day do a great big pan of something simple, eg chilli or bolognaise and put several portions in the freezer.

And yes, can't DH also get a 0% deal for his card or does he think his credit rating is buggered up?

See you are currently in contract to Sky, but do put the end date on the calendar. We've moved recently and ditched Sky, replaced with Now (streaming) which has the same programmes and seems a lot cheaper. Plus you're not tied in, and when you go to cancel they seem to give you a new deal. It doesn't work for the Sports though, I think sky sports via Now is just as expensive as normal Sky Sports? But we've never had it ourselves.

My advice is to deal with yours first, and try to avoid any expenditure on his card at all, and he just pays the minimum.

Martin Lewis says you should always try to pay off the debt with the highest interest first. In this case, your husbands credit card.

I'm afraid I don't favour men with things like this. Op is asking for advice for her. That's wiwd.

Are you non tax payer? If so look at claiming Married Tax Allowance.
Are you on a water meter? If not then look at getting one. If you are, then look at water saving devices for your taps and toilets.
Have you looked at a benefits checker?
You haven't included contents insurances in your outgoings either.

Well it all depends if you have joint finances, sounds like they don't maybe? so it is up to him I suppose. I was just automatically thinking in 'joint finances' mode.

With the mobiles, have you actually paid off the handsets now? Because if so, I recommend Smarty, I'm currently paying £5 a month for 4GB and it's fine. No contract, just month to month
They use the Three network, if that's good in your area.

You can transfer your number, it's a bit fiddly but well worth it.

Smarty is excellent and no fees abroad I was so over the moon when I cancelled my DD to the phone companies and switched to smarty. Looking at sorting my BB next I love not being in contract to anyone apart from my iced energy tariff til nov 2023 I am glad of that one! I recommend SMARTY it is excellent coverage in Europe too🤩

Iced is fixed