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  • FIRST POST
    • Copperhobnob
    • By Copperhobnob 6th Jun 17, 6:45 PM
    • 4Posts
    • 8Thanks
    Copperhobnob
    I really don't know where to start
    • #1
    • 6th Jun 17, 6:45 PM
    I really don't know where to start 6th Jun 17 at 6:45 PM
    Hello,

    Complete newbie here and feeling very raw so please go easy on me.

    We're in a mess, and i don;t know where to start in sorting it. So there's hubby and me and two sons and we are in about £60k of debt. Mostly stemming from the fact that our second son was born just after the financial crash, i was working on a university project job and we were living in rural Scotland - a real perfect storm of circumstances. I ended up out of work for over 4 years and then doing bit jobs which didn't pay enough for us to even cover costs. Owing to the financial crash, i had to leave my previous profession and i am now struggling job wise too. I have been out of it too long to get back in and have subsequently done a(fully funded!) biology degree. which does not appear to be a help in the job market either as biology is so specialised these days.

    I am now back working full time but we are only just making ends meet. We're far from the worst, H is on £40k and im on £17K but we're drowning in debt and everything we're doing to sort it just mires us deeper (not helped by H going "oh, you have a job, let's take a £10k loan to do stuff to the house" or just taking the first car finance deal the dealership offered him ).

    So. <deep breath>

    We have an £8k car loan, another £14k (amalgamating the two expensive loans that H took out), about £25k credit card debts and £15k to my mum who bailed us out before.
    Where do i even start? We're undermortgaged, by about £80k, is this an option? Should we talk to a financial advisor? If so, how do we find one who will deal with debt? Our current one is only really interested if he can help us buy something (remortgage etc), he doesn't seem interested in helping with debt.

    Thank you so much for reading x
Page 1
    • UncannyScot
    • By UncannyScot 6th Jun 17, 6:55 PM
    • 711 Posts
    • 3,340 Thanks
    UncannyScot
    • #2
    • 6th Jun 17, 6:55 PM
    • #2
    • 6th Jun 17, 6:55 PM
    Hi thanks for posting and welcome

    Personally, I would contact your local Citizens Advice Bureau (CAB) and ask to see one of their debt advisors. Or contact any of the free advisory services available, such as StepChange or Christians Against Poverty.

    These free advisory services are there to help you, not to sell to you.

    Read through other folks diaries here for help and inspiration and do not be afraid to ask anyone on here for help or advice.
    We are all here to help and support each other
    BUGGRITMILLENIUMHANDANDSHRIMP I TOLD EM! - Foul Ole Ron
    It is important that we know where we come from, because if you do not know where you come from, then you do not know where you are, and if you don't know where you are, then you don't know where you are going. If you don't know where you're going, you're probably going wrong.
    R.I.P. T.P.
    • Copperhobnob
    • By Copperhobnob 11th Jun 17, 5:45 PM
    • 4 Posts
    • 8 Thanks
    Copperhobnob
    • #3
    • 11th Jun 17, 5:45 PM
    • #3
    • 11th Jun 17, 5:45 PM
    Thank you! I'm sorry for the late reply, it took me ages to find my own post again!

    We've been to CAB before and they have offered to make arrangements with our creditors to reduce payments but it affects our credit rating and the only way we have to pay my mum back is to remortgage so I don't want to be in a position not to be able to repay her. I might try step change directly first.

    Thanks,
    Rachael
    • ljj1986
    • By ljj1986 11th Jun 17, 5:58 PM
    • 41 Posts
    • 55 Thanks
    ljj1986
    • #4
    • 11th Jun 17, 5:58 PM
    • #4
    • 11th Jun 17, 5:58 PM
    Hey, I didn't want to read and run, I'm not experienced with debt figures that you are talking about but hopefully someone will come along with more experience. Have you done an SOA? Its worth taking a look at where you're spending to see if there is anything you can change. I would only recommend remortgaging if you are prepared to change your spending habits, as with consolidation loans, they only work if you change your spending habits otherwise you tend to end up back where you started but with the additional loan.

    I agree with reading through other diaries, they really give some fantastic inspiration, there are others here in similar amounts of debt as you so maybe take a look at those and see how they are getting on?
    LBM 15/03/17=£7586.01 DFD April 2019.Debt Today: £6499.34 (DFD Apr 19)
    Target £0 Debt by Dec 2018 Highest debt: £12,242.84 (May16)
    • Hiddenidenity
    • By Hiddenidenity 11th Jun 17, 6:01 PM
    • 5,069 Posts
    • 23,321 Thanks
    Hiddenidenity
    • #5
    • 11th Jun 17, 6:01 PM
    • #5
    • 11th Jun 17, 6:01 PM
    First off stop, take a breath and slow down.

    You've made the first step, you know you need to sort it. You realise the problem.

    First of do a SOA. Include everything. Not what you think it should be but what you actually spend.

    Even if you dont want to post it here. Go through each category and see where you can cut back. Gas/Electricity/other utilities/tv/broadband/phones. Most people can shave their grocery spend when meal planning and sticking to it. Entertainment, switch to more free things now is the perfect time. Make the most of walks/parks etc.

    Do you have things you can sell that you no longer use/have been outgrown.

    Once you've done your SOA and set a budget, keep a spending diary, you can see where you still overspend/can cut back. All those odd coffees/chocolate bars/just popping for a coupe of things add up over the month.

    Once you know where you stand with this you will have a better idea on the next step to take.

    Good Luck! Remember you can sort this - Just one step at a time.
    DFW £1388.71/£7348.71 Rent Arrears £511.28/£3381.28

    Rock bottom became the solid foundation on which I rebuilt my life.
    • Purplemumof2
    • By Purplemumof2 11th Jun 17, 6:10 PM
    • 5,238 Posts
    • 17,557 Thanks
    Purplemumof2
    • #6
    • 11th Jun 17, 6:10 PM
    • #6
    • 11th Jun 17, 6:10 PM
    Hi welcome to the boards, they're a friendly helpful lot here.

    I've heard great things about Stepchange, so please do contact them.

    I'm sure more knowledgable people will join in.

    Have subscribed and will follow your journey x
    Official DFW Nerd Club - Member no. 791 - Proud to be dealing with my debts
    MBNA: £7250.00 Cap 1: £529.05 BC: £5196.94

    AFD 0/10 NSD 0/10 LTW 0/10

    20p Savers 2017 £2 Savers 2017 50p Savers 2017 SPC 10 2017 #003
    • enthusiasticsaver
    • By enthusiasticsaver 11th Jun 17, 6:23 PM
    • 4,439 Posts
    • 8,256 Thanks
    enthusiasticsaver
    • #7
    • 11th Jun 17, 6:23 PM
    • #7
    • 11th Jun 17, 6:23 PM
    Firstly I would not remortgage particularly if the loans are unsecured. Turning unsecured debt into secured is putting your home at risk and I would imagine if you are that heavily in debt the bank will not do a remortgage anyway.

    As HI suggests doing an soa to see if there are areas to cut back is a good start. You have £57k gross income which sounds a lot but with 2 children (especially if you have childcare costs) is probably not leaving you with lots of spare income once your bills and credit card debts and loans are paid monthly.

    An soa will help you see where you spend your money, identify problem spending areas (usually groceries) and help with budgeting.

    The first thing you should do though is stop using the credit cards.

    Save up an emergency savings account.

    Do a spending diary to record every spend.

    Any cards not on 0% move if you can (if your credit rating is still good). Check the interest rates being paid on all debts.

    Doing the steps above as a first step will help you focus on which debt to pay off first (the most expensive.)

    If your mum will wait for the £15k then this means you would normally focus on the credit cards.

    As a last resort a DMP may be worth considering but without seeing your soa and noting you do not want your credit rating affected this should be a last resort. Are you managing minimum payments at the moment?
    Countdown to early retirement on 21.12.17 2 months to go.
    • motivated
    • By motivated 11th Jun 17, 6:28 PM
    • 2,235 Posts
    • 3,179 Thanks
    motivated
    • #8
    • 11th Jun 17, 6:28 PM
    • #8
    • 11th Jun 17, 6:28 PM
    Hi copperhobnob

    Firstly take a deep breath and count to ten. I was in a complete and utter mess back in January. Over £80,000 in debt Although never missed a payment on anything I was panicking that we couldn't carry on like this. My OH sounds just like yours and would say things like "we need a holiday, which credit card shall we use". I could go on. We consolidated twice and still wracked up the debt The brown stuff well and truly hit the fan when I woke up and said no more!!

    Anyway on to today 5 months in and I am on a DMP and loving it. I sleep at night, we have meals out now and again etc we are living life again just only within our budget.

    The first time I was about to contact stepchange I was like I plucked up the courage and it was the best thing I've done for a long time. They were so helpful, non judgemental and very supportive. I get no hassle whatsoever from creditors. We are paying back every penny of what we owe only now at a reasonable amount which allows us to live a little and has removed all of the stress.

    Have you done the budget sheet on SC website, it will give you an idea on the best solution for you.
    You are not the first and you certainly won't be the last. Head on over to the DMP support thread they are the ones who got me where I am now. Amazing bunch.

    Good luck with your journey
    M
    Emptying my lake with a teaspoon
    Short term goal £635/£1796
    EF/1k
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