Debt horror. DH has messed up badly. HELP!

[bungalowbelle]

Name change because I'm sad and embarrassed.

Five years ago I became a SAHM and let DH do all the financial stuff.
Now I'm back at work and I've just discovered we're in a dreadful mess.
We've had a couple of really unlucky financial mishaps lately which hasn't helped the situation.

I'm taking over the reigns now but I need some advice because I've never been in this sort of deep trouble before.

DH has debts on 4 credit cards. We also have an overdraft. I have a smallish part time wage coming in every month. He's freelance and gets money as and when.

Should I put all the debts together? If so, how and with whom.

Can anyone shed light on a strategy? Is there such a thing as a free debt counsellor?

Somebody?

I wish I could help - I'm sure plenty of more experienced people will be along in a bit. But I think your first port of call should be the Citizens Advice Bureau. They can tell you what other, specialised, advice is available round you.

And yes, it probably is worth rounding up all the credit card bills into a loan, as almost any interest rate is better than theirs.

hope more advice along soon...

Someone with more experience will be along soon, but this should bump the thread up.

Avoid Ocean Finance and companies like that who advertise on telly. I have a friend who has to deal professionally with their customers a few years down the line and he says no one should touch them with a bargepole.

What are the interest rates on the credit cards?

CCCS are a charity who can help

I got this from the Money Saving Expert website (Martin Lewis off the Jeremy Vine show on Radio 2):

"The three places I?d recommend are Consumer Credit Counselling Service 0800 138 1111, National Debtline 0808 808 4000, Citizens Advice or visit your local CAB centre. The sooner you talk to them the better. It may help you sleep at night."

How much are we talking here, and has he as yet missed any of the minimum payments on the cards? Is your o/d authorised? Are you up to date with mortgage/rent/council tax/bills etc?

The first thing to do is sort out exactly what you are paying out each month, then cut this down as much as possible (do an archive search for some really good moneysaving tips). You will then at least know whe he has earned enough to pay the monthly bills and use the rest for extras/debt repayment.

Try and transfer all the credit cards onto 0% deals moneyfacts has details of all available deals. You should be able to take out cards in your name and in his to get as much credit as possible - just make sure you cut up the cards when you get them and don't be tempted to put anything else on them. f you can't clear all your debts this way then see if you can get a bank loan - your own bank is teh best place to strat, but do shop around to get the best deal. I would also try to get something where you can pay off extra without penalties, because tehn you can use dh's excess frelance income as it comes in instead of being tied to set repaymenst.

Thanks girls. I'll pursue these.
Lemonaid I'm not sure what the rates of interest are on the cards and I don't think he knows either because when I ask him he goes into a speil of jargon which I don't believe even he understands.

OK, I'll crack on with this and update you on my progress. Thanks again. Any more help is very welcome.

Lots and lots of advice on the Motley Fool 'dealing with debt' board (I will post a link shortly when my PC stops p*ssing around).

Strategies include how to work out a realistic budget and 'snowballing' the payments, ie paying off the most expensive debt first then continuing to put that same amount plus what you have saved in interest payments into the second debt etc. Also advice on keeping your creditors in touch, how to save money on your day to day living costs and when bankruptcy is a sensible option.

They're a great bunch of people: tend towards the Cod school of tough love, but they've all been where you are and can really help you through it.

Good luck!

you have a few options depending on amount and your situation and if you own a home. Bottom end is bankrupcy, then IVA, remortgage, secured loan, unsecured loan and best option is a 0% credit card.

Motley Fool dealing with debt board

Before we were married dh had large debt he struggled with. He saw someone from a financial instituion and got a protected trust deed I think it was called. They basically took over all debt and he paid them an agreed sum per month for I think 3 years.