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Looking forward to (one day!!) being debt free!!

We are always trying to get debt free but have had growing debts for about 13 years. We are a family living in a static caravan and are now really pressing to try and clear our debts so that we can one day build a house on the land we are on.

Not too sure where to begin - we have 2 loands and 2 credit cards (with terrible interest) and a bad credit rating so we can't figure out much of the way ahead - can't switch to other better rate cards or loans as we keep getting turned down and I am self employed earning reasonably well during the summer and not well during the winter months (seasonal tourism work).

We are doing everything we can think of in terms of budgeting and not spending but would love to be able to stop spending all our money on interest without getting anywhere. Having said that, we are excited and hopeful that we will get sorted in the longrun.
CC1:£7800 (26%) CC2:£3510 (15.9%), Loan1:£5150, Loan2:£2250 and roughly £2000 in catalogues.

Comments

  • GeorgeUK
    GeorgeUK Posts: 7,737 Forumite
    I think the best thing to start with is puting up a statement of affairs (SOA). From this we should see if there are any areas of your expenditure where savings can be made and also which debts to prioritise so you are paying the least amount possible in interest.
    https://www.makesenseofcards.com/soacalc.html
    After falling off the gambling wagon (twice): £33,600 (24,000+ 9,600) - Original CC Debt: £7,885.91

    Dad Gift 6k ¦ Savings & Inv Tst: £2,500
    Loan 10k: £0 ¦ Dad 5.5k: £2,270 ¦ LTSB: £0 ¦ RBS: £0 ¦ Virgin £0 ¦ Egg £0

    Total Owed: £2,270 (+6k) 11/08/2011
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