9k of credit card debt- where do I start getting out of this mess?

[StopEatinNutellaOutOfTheJar]

My hours have suddenly dropped at work- there is a chance of extending my contract again in the new year to up my money but unfortunately the transition from one contract to the next hasn't been seamless as I had hoped or expected. I have managed to secure some over time in another department for the next few months but it will only top my money up by £120 a month, I need £500 realistically. I am willing to look at side hustles or something I could do from home to top up my money but I feel like my options are so limited with this and I don't know where to start. I have a laptop so can do stuff online. I am pretty artistic. Can draw etc but not sure anyone would want what I can do.

My credit card has become completely out of control and I have maxed it out at 9k! its costing me £400+ a month in repayments and over £200 of that is being swallowed in interest charges. I feel totally overwhelmed. I don't know how to fix it. I don't think I would get accepted for a loan to pay it off as my wages are so low at the moment. I tried to discuss it with DP but he was about as much use as a chocolate tea pot - and to be honest I need to pay it off myself or I will just do it again! I have cancelled every DD that I don't need and as soon as I am out of contract with sky I will be getting rid of our TV package with them. I am then down to the bare bones of direct debits (mortgage/water/heating/council tax etc) and have nothing else I can cancel. I am hoping our nursery bill might reduce soon which will free up money to use to pay off the debt.
I am meal planning. Shopping at Aldi and buying certain products in bulk from costco to save money so I can stretch every £ further.

How do I tackle paying the debt off? I have given the card to my mum so I can't spend on it again in the future - unless there is an emergency like a car repair. And once the card is paid off I intend to create an emergency fund for such instances and will just get rid of the card once I have that in place.

I am thinking of withdrawing cash to cover food and petrol for the month so I stop mindless contactless spending and to actually stick to the budget.

I also have lots of crap I can sell which I would put onto the balance.

I just don't know if this is realistic? Am I being stupid to think I can pay this amount of money off by just chipping away at it. It feels like a mountain and whilst I feel motivated to sort this out now I know its going to take a very long time. How do you keep the momentum up?

Step change.
Citizens advice.
Apply for a DRO( debt relief order).
National debt helpline?

i have credit card debt but I move it around constantly on 0% interest deals. Can you start by looking at that?

I am thinking of withdrawing cash to cover food and petrol for the month so I stop mindless contactless spending and to actually stick to the budget.

This is essential. Add up how much you have spent on 'mindless contactless spending'.

Take a look at the Dave Ramsey method. It's joy for everyone and isn't a quick fix but it works

What was the debt spent on? It sounds like household costs in which case you’ve got a relationship issue as much as a financial one.

Would DP be able to get a balance transfer card with a lower interest rate? Is he also repaying the debt or is it solely you?

You definitely need a 0% card to transfer to, Clear Score and the like will give you an idea of which providers will accept you, £200 on interest is crippling

Definitely look at balance transfers even if the fees are expensive add it up and work out if it’s cheaper in the long run (I imagine it is). Have a look at money saving expert that will have details on best transfer cards.

Otherwise see what you can sell and throw as much as you can at it to get it down and reduce those interest payments.

Agree with Dave Ramsey method. And there are a lot of people to follow on Youtube and Facebook who deal with personal finance. Take a look at a few of them, it's really helpful.

Definately do the 0% credit card thing. Even if a company won't give you 9k worth of credit, take as much as they offer and transfer that amount to start with. So for example if you get offered £2k 0% finance for 6 months then at least transfer £2k onto that card and put it on minimum payments whilst you deal with the rest of it. You'll find that once you get a credit card issued, other credit card companies will offer finance too.

If your good at art, take a look at "PeoplePerHour". They all work from home. I've just paid a lady to do a logo for my new self employed business. It couldn't be easier. Could you do things like that? I always make sure I use women and I always use UK based people although they are a bit more expensive than international ones.

Good luck. You're not alone.

I recommend this everywhere and it might not be for you but do take a look at YNAB (You Need A Budget). In terms of stopping needless spending I reckon it will change your life. I also enjoy my budgeted spending because it’s absolutely guilt-free. Look it up and give it some thought (I swear I don’t work for them!)

I'm meant it's not for everyone! It's certainly not a joy!

In my early 20s (30 years ago) I didn't earn very much and spent way more than I earnt. I had consolidation loans, credits cards maxed out and buried my head in the sand about it and then added up it all up.- I owed nearly £12K.

I worked full time but went to the nearest pub and got myself a second job. It took almost 4 years but I cleared the debt. If I got myself into the same position I would do it again. I wasn't married but had a partner who met me whilst I was paying off the debt so he did pay for the treats and holidays we went on.

Are you able to get a second job and use those wages to exclusively pay off the debt?

😂

Feeling in control financially really is a joy though, whichever method you use. The peace of mind is amazing.

<goes to update budget >

I agree with everyone saying switch to a zero percent interest card. Then when it is paid off I highly recommend You need a budget.

I started with YouNeed a Budget just over a month ago and it has been life changing. It changes your mindset about spending and saving and puts the brakes on boom and bust style spending. I used to spend heaps the week after payday and then be broke for the rest of the month, which sometimes led to having to spend on credit cards for essentials because I hd frittered the money away at the start of the month on crap I didn’t need. I would be a lot more wealthy if I had found it 20 years ago!

Now I feel much more in control. And I don’t feel guilty about money I do spend, as long as I budgeted for it.

it is very freeing. I will have paid off all my credit cards by Christmas, then I will have some extra each month to save for other things.

Those of you who use YNAB, is it suitable for self employed people? I get roughly the same income each month but it can vary by as much as £1k a month. Would it be useful for someone like me?

I've just done this, I had £1800 on my banking credit card but the interest was about to start so I took out another banking balance transfer card with 0% interest for 20 months and transferred it over. I can only pay £50 a month right now due to hours at work, so when the 20 months is up am I to move it to another card if I can find one?

Yes! I'm self-employed and it made my life so much easier throughout the lockdowns and also during a period of serious illness when I couldn't work. You always know exactly how much money you have and what it's for, it works really well for that.

https://www.ynab.com/ Take a look at the four rules on this page and you'll get an idea.

The staff are really nice and will help you with any questions you might have (or we can help here).

Again I SWEAR I have no affiliation with them 😂I'm just a superfan I guess!

(Editing to add: my work is project-based and my income varies wildly, perhaps 6000 one month and 200 the next. YNAB is still amazing for me.)

Two sets of things - 1) tackling current debt 2) diagnosing tendencies to get indebted and prevent further debt -

PART 1: Tackling current debt

1. Move the balance across as many 0% cards as you can.
2. set yourself a personal allowance budget and remove X amount on pay day by direct debit to service Debt + standing order however smal to begin emergency stash
3. Get a starling or similar account for personal allowance with smaller spending pots each with their individual virtual card. Spend directly from specific pots for specific purposes. If you discover on the 16th of month that pot for coffees and bought lunches has run out - tough luck, that pot has run out and you wait till next months allowance.
4. Under no circs add to debt

PART 2- diagnose and prevent indebtedness

1. Study the debt. What created it? What spendings do you see which went on the CC? A car? A new kitchen? Or everyday things like uniform/meals?
2. Commit to certain goals as a couple (no holidays for X years/no purchases beyond Y amount for Z years)
3. Save in emergency fund as aggressively as possible whilst servicing debt by standing order that goes out on pay day before you see the money. Emergency fund in different bank account ideally without an app. You don’t see it hanging around.
4. every time you have an impulse to buy a coffee/magazine/“mindless” thing - DONT. Instead put that amount you would have spent (£3.65 on a latte?) into the emergency pot.

@PinkFrogss some of it was just being frivolous and stupid- and the rest was on work done to the house. New boiler etc- we went over budget on building work and needed stuff finished so we could move back in. My dp has taken on a chunk of debt too but he earns a lot more than me (he also pays a lot more into the house than i do.) so he has managed to make a significant dent in his. I feel like I am treading water with mine. We have hauled over the household costs with a fine tooth comb. There is nothing else I can cut but some of our costs are huge- mortgage and childcare is costing us £1500+ a month before we even pay any other bills or buy food. When I moan about DP its mainly because he is rubbish with money- he just transfers me the money every month and I pay it all so then it feels like its all on my shoulders. I wanted him to listen and just reassure me that it will be ok but he just starred back and my blankly and made some comment that he is paying his off. Just wasn't a very helpful comment.

I will see if I can do a balance transfer for some of it- that's a good idea and I will look at Dave Ramsey. I have a really good credit score so hopefully that will help a bit.
I just keep looking at it and thinking how the hell am I ever going to get past this! It feels so huge! Maybe I should aim to break it down into chunks and aim to get it below a certain amount by a certain date? like a challenge....my brain is weird like that.

Please read Martin Lewis and Dave Ramsey. I’m amazed you have not got it into a zero percent space yet.

The debt that went towards house repairs is not entirely on you at all, is the amount you and partner have taken on proportional to your incomes? I’m sorry OP but this doesn’t sound much like a partnership at all.

I think you need to sit with him, run the numbers, and come to a fair agreement.

Why is the house related debt on you alone?

Are you sharing household expenses and debt repayments fairly? If he earns a lot more than you, he should be paying back a lot more than you and paying a lot more towards joint household costs.

If you have a house and a child together, and especially if you're doing more at home, you should split your money so you both have equal personal money left after all household, child and debt repayments have been made except debt that's been run up due to you overspending on you (but it sounds like the debt is due to household costs, I'd also argue that if you've got into debt due to historical unfair sharing of costs so you've had less personal money, then that's a joint debt too).

Have a look at Moneysaving Expert.

https://www.moneysavingexpert.com/loans/debt-help-plan/

It sounds like you're planning to do all the right things re your debt. Definitely try for a 0% card, many allow you to input household income, so you not earning very much might not be a barrier. In any case, always pay at least £1 more than the minimum on any card, as this removes the minimum payment marker on your credit file, which paints a better picture of your finances.

Have you stopped spending on the card? That's a big step if you can do that.

Can you get a second job somewhere else? Or a different job with more hours? Also sell as much as you can, that's a good help and it's something to focus your energies on instead of looking for things to buy. Moneysaving Expert also has advice on how to stop spending:

https://www.moneysavingexpert.com/family/stop-spending-budgeting-tool/

As for what's achievable, £9k of debt really isn't that much. But without any details of your income and money left after all essentials, it's hard to say how long it will take to get out of debt.

Good luck!