So how do I get out of debt?

candys_kisses · 11 December 2005 at 6:19PM

Just where do I start?

All of our debts we consolidated into a loan secured on our house over 15 years.

This cut down the amount of interest we are paying but by the end of the month there is nothing left, in fact we have started using our credit cards again.

What is the cheapest way of paying off a debt of 50k?

The income just doesnt cover the outgoings any more, so what are the options?

$17mma · 11 December 2005 at 6:24PM

I definately think that you are digging youself a hole by using your credit cards again. If you have nothing left at the end of the month as it is how are you going to pay them off!?

List your income and expenditure and see if someone here can help and also info on your loan to see if any advice can be given or if you can maybe get a better loan somewhere else.

Other than that you are making more work and giving yourself more headache by using your credit cards. If you can afford it dont buy/spend it!

CUT UP THE CREDIT CARDS!!!!

tomstickland · 11 December 2005 at 11:47PM

in fact we have started using our credit cards again.

Alarm bells are ringing!
Loads of people have spiralled into serious debt after taking out consolidation loans and then respending on ccs.

You need to list income and expenditure and look at ways of cutting expenditure or increasing income.

What interest rate etc does your consolidation loan have?

Xbigman · 12 December 2005 at 8:09AM

Securing debts this size against property is a big mistake, don't make another and use your credit cards again.

Do you budget for things? If not you need to start doing so, and budget very tightly.
Regards

X

inkie · 12 December 2005 at 9:12AM

To give useful advice you need to provide an itemised list of income and expenditure, so we can work out the best way forward for your situation

Thefunkygibbons · 12 December 2005 at 12:43PM

Quick

Find the scissors

What ever happens after you cut them up is nothing compared to how it will be if you keep using them

As well as the statement of income and expenses, what can you do in terms of ebay sales? Everything even tired old videos have a value. Sell some stuff.

rchddap1 · 12 December 2005 at 12:45PM

Can't emphasise the above enough. If you have a secured loan, and have gone back to the credit cards then you are in serious trouble. If you don't take action now further down the line you could be in danger of losing your house!

southernscouser · 12 December 2005 at 4:17PM

Have a look at the thread below then post your SOA (state of affairs) back here.

http://forums.moneysavingexpert.com/showthread.html?t=107280

Jen_Jen_5 · 12 December 2005 at 5:21PM

increase incomings or reduce outgoings

its simple maths there are no short cuts

candys_kisses · 13 December 2005 at 12:27PM

Thanks for the replies.

Dont worry I can so simple maths, not enough income and too much outgoing means you are scr*wed!

While we have reviewed our outgoings and changed utility companies, pay bills by direct debit, change the deal on our mortgage every 2 years etc I would like to know what others have done or would advise to do with the 'debt' itself.

The secured loan seemed the best option, lower interest rate and one rather than many monthly repayments - could not get an unsecured loan on that amount and interest free credit cards meant too high a repayment figure even though no interest.

I am desperately trying to find a new job as I am only working minimum wage part-time since my daughter was born and now she is in school I want to have a job a little more brain taxing and with a higher income.

The one interest free credit card we are using can be paid off in July when a savings plan pays out so I have set myself a target of 6 months (until then) to manage the debt better (thats what I am asking the advice for), get another job and sort ourselves out.

We dont smoke, drink only occasionally (at home, not at pubs) own a regular car and dont have expensive clothing tastes.

The debt started to accumulate after we had a baby - we had planned for all the changes etc but not her arriving 14 1/2 weeks early and me being made redundant within 6 months of this. Add to that her poor health in early years and my inability to work more hours due to this and we know find ourselves in the brown stuff!

So memo to self here - get a better paid job (full time rather than part time) and try and manage the 'debt't itself - any suggestions?

Thanks!

rchddap1 · 13 December 2005 at 12:31PM

If you post your incomings and outgoings I'm sure someone will make some suggestions. You need to list everything....spending on food, utilities, transport, debts, council tax, the whole lot.

So how do I get out of debt?

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