Credit card debt management with a new born.

[Freyja23]

Hey! I am wounding how everyone pays off credit card/loan debt during and after pregnancy? Do you stop paying them back or just pay minimum until you go back to work? Has anyone called their creditors to reduce interest rates before? I thought this might help if I ask my bank for support. I'm am currently overpaying on mine but this might have to stop and all the money will go on baby. Thanks

Obviously I don't know your specific circumstances, but most people continue to pay their debts while pregnant and on maternity leave.

Was the baby planned? In which case you should have budgeted for a reduction in income.

If not then have you looked into what financial support you may be eligible for? Will you get maternity pay?

If you find yourself in unexpected financial difficulty due to circumstances outside of your control, then call the credit card company who may be able to help. If you need to enter a debt management plan or similar this may effect your credit rating going forward.

Get this moved to Money rather then pregnancy section as it seems a better fit for that section.

When are you due ?
Will you get maternity pay ?
How much is your debt ?
How much are your living costs and is your partner stepping up to pay more while your income is reduced ?
This is the time to pool all money in a joint pot and only once the bills, including all child related costs, are paid do you consider equally sharing what is left.

You cannot just stop paying your credit card bills, but only paying the minimum is not sensible as the amount owed increases over time.

CAB and money saving expert are good places to go for help.

Christians Against Poverty and Step Change are charities that help with debt.

Do not buy anything at all for the baby, look on Olio, Facebook and Freecycle for free baby equipment and clothes

You need to work out a new budget, because unless you have family doing free childcare, your available money doesn't increase very much when you go back to work - childcare eats most of it.
So you try and pay off as much debt as you can before your earnings drop to make it as easy as possible going forward.

Are these normal credit card and loan payments (not IVA/defaults?). Don’t stop paying them. If you have to reduce to minimum for a few months, do it, but really try to make it a last resort as the balance just gets bigger.

Could you move the credit card balance to a 0% balance card so the interest doesn’t rack up?

I worked for a credit card company;, having a baby in itself won’t qualify for any reduction in interest payments but if you’re having difficulties you can contact CAB as PP have said. The credit card companies always advise to get in contact if you are having trouble, but IMO they don’t really do anything. CAB are better placed to provide advice.

I've never heard of anybody stopping paying debts due to pregnancy. You either budget beforehand or, if that ship has sailed, you make the necessary adjustments - secondhand baby equipment, shorter mat leave, partner works overtime, etc.

This.

Keep in mind, you don't need to spend much on a baby. Most necessities can be borrowed, sourced off freecycle or bought secondhand. Look out for NCT sales. Friends and family tend to buy little sleep suits and toys as gifts. Babies grow so fast, there are always good secondhand options available. If you can breast feed that reduces the cost further.

There is a vast industry for stuff like changing bags and changing tables, none of which are necessary.

You need a buggy (secondhand?), a car seat (new), a cot (borrowed? )and a basic set of clothes and nappies & wipes to start with. Then see how it goes.

All money should not be going on baby. That is madness. Buy secondhand on Facebook marketplace for everything except car seat and mattress. You can't just stop playing because you are pregnant. Try to work extra hours now, or get partner to do overtime. Last resort is to pay minimum payments but you will really just be paying off interest. Stop putting things on to credit card. You might have to go back to work earlier than you had planned.

With the cost of living crisis especially it can be difficult to not use credit cards. If you can afford to pay off as much as you can beforehand but I see no harm(or alternative) to making minimum payments during maternity - if you can afford more than the minimum then deffo pay more. I for one will be in a similar position. I will need to save from my mat pay to afford to live for the months I wont get maternity pay and plan to do minimum cc payments vut hopefully when i return to work after maternity I will be able to pay the CC off with larger payments.