20,000 pound in debt? HELP!!!!!

yasohail

Hi Everyone,

Your advice on this matter would very helpful.

I'm over $20K in debt, it just has been building over the years. And I haven't really cared about it. Until now.

I love buying things that I don't need and put everything on my credit. I have got about 10 different credit cards. When ever apply for the card I always get a high spending limit between 2K-4K. Whenever I use up the limit on card, I apply for another one.

I don't what to do. I've tired cutting up cards. But nothing seems to help me.

I earn $21K a year (about $1300 a month). Which $500 goes towards me paying of my cards. And the rest on the spending habit.

My relationship with the husband has become awful in the last couple of months. I don't pay towards the house mortgage. All I pay towards is the household shopping. He pays for everyting else.

He knows about my spending habit. He has helped me many times in the past. BUT he won't help any more. I know it is my responability, but don't what to do.

I starting to feel really awful, as it just has hit me really hard. Because of my relationship with my husband. He works long hours (and he says it is because he has to pay for everything).

I have no savings at all.

Can someone please give any advice. Because I would like to pay of debt within 5 years (I'm not sure if it is possible. But I will try).

All suggestions are welcome.

tomstickland

if you can put £1K per month into paying off then it's 20 months ignoring interest, so you're looking at around 3 years of paying off if you put your mind to it.

First thing, move as much as possible to the lowest APR, and/or move to a 0% introductory offer on another credit card.

Write down a spreadsheet of all your debts and the rates etc and set yourself targets for each month. Update it every day with your progress.

I love buying things that I don't need

Sell items on Ebay or via findit.co.uk or tradeit.co.uk.

Once you get into the right frame of mind, you'll actually start to enjoy being money efficient and moving the debt. Act now or otherwise you'll end up spiralling the debt upwards.

Justicia

Further to Tom's excellent advice above...

Could you supply a list of your debts on here so that forum members can give you some helpful advice on managing and clearing them?

If so (and I would recommend it, as there are individuals on this site that can give some excellent pointers), also note the outstanding balances, the credit limits and the APR's on them.

meep_2

wow. where to being, I've never been in debt, but here is what I'd do, firstly listen to tom and justicia.

Your going to have to start limiting your budget in a major way, firstly work out a month what you spend, where and how, then you'll have to look at your incoming and outgoings, decide which of the outgoings can be either stopped completely, (new clothes every week, eating out/eating junk food), and which can be lowered, perhaps socialising, makeup etc.
You don't have to stop doing everything, just set yourself a spending limit on each.

Next, be completely honest with your partner, show him what you intend to do, and have no secrets from him, you may feel that you might find it hard to keep to the plan, so maybe giving him your cards, and let him give you a certain amount of money each week (i know it sounds kinda childish, but you will learn to budget with no means of getting an more easy money).

If you decide you "desperatly" need to buy something, firstly your husband has the cards, and secondly having to wait will make you in your own mind justify if you need it.

JCL

Further to the above I would just add that you should use the 24 hour rule before buying anything. Go home, sleep on it and when you wake up you might realise you don't really need it.

Get rid of the cards and only carry cash - that way you can only spend what you have and when it's gone for the month that's you.

I wish you well.

PS. Your title says £'s but the figures are in $'s - as this is the worldwide web are you in the United Kingdom or somewhere else??

robnye

if you have any cards with zero balance, cut them up and contact the companies to cancel them, if the companies offer 0%, take the offer, transfer money from other higher interest rated cards to the new 0%....

but you must cut the cards up......

ms_london

Hi, and welcome to the boards.

I am sorry to hear about your debt, we've all been there. I had £19,000 of debt (credit cards, store cards, overdraft, loan....) and recently made my final repayment at the end of October....

You have come to the right place.

Unfortunately, it takes a lot to control your spending habits, it really does, but you can do it!!

If you could complete a SOA (statement of affairs) which lists ALL of your monthly incomings & outgoings, and also a list of ALL your debt (who its with, your balance, credit limit, APR...) then perhaps we could help you save some money, or advise you on what to do next...

You do need to cut up those cards though & start living within your means, below your means if you have to. You dont have to spend all of your wages (you can tell Im a reformed character :0) - and it is ok to save some :0)

Moneysaving is fun. This site is fab, and there are so so many tips on how to save money, money off codes for websites, grocery shopping, where people have found bargains etc etc. Even if you want to come here to whinge/moan/rant about being debt free, everyone is in the same boat!!

I used to spend so much on clothes/makeup/CD's/going out/beauty treatments etc etc, and looking back it was because I was unhappy & felt I "needed" these things to make me a better person. I am so much happier now (not now im debt free, but whilst I was in debt) learning to have to budget, and have a life on a restricted amount of ££££. Material posessions don't matter to me anymore..

I hope you have a fab Christmas, I shall be back on the boards on 27th (no internet access at folks - NOOOoOOOoOOooooooooo!!). Try not to worry about things, but please try not to spend anymore & stay away from those sales :0)

You can do this!!

xx

yasohail

Thanks for all your advice.

The debts that I have are:

Barclaycard Visa - $5000
Barclaycard mastercard - $1000
Adams card - $500
Topshop - $250
Mint - $2000
Overdraft - $1000
Capital One - $1000
Halifax Credit card - $1500
Nationwide - $1700
Kays Catalogue (account) - $300
Loan - $3000 (Alliance & Leciester)
Loan from dad - $1000
Car Loan - $2000 left

These are all the debts that I can think of. I don't know which ones to pay of first - I know I can pay my dad of last and my overdraft has low APR. Not sure what interest I'm paying for the rest.

I find the grabbit section of this website very addictive. It is the first part I go to when I turn the net on. Because it just makes wanna spend more.

Please help, is there any loan I can take to pay of all my debts.

I am from the UK. The reason I use this $ is because I can't seem to get the pound sign to work. Don't know whats wrong with my keyboard.

Thank you in advance.

tomstickland

Nooooo, don't take out a consolidation loan. It won't make the debt go away.

You need to find out the APR of each of your debts.

I'd pay off some of the smaller ones if possible to make the problem seem smaller.
Then you need to move as much as possible onto the lowest APR and target the high APRS for priority payment.

I think you need to have a good think about the things you buy. Do they really enhance your life? What if you had to give them all away? Would it change you?

tomstickland

£ is hold down alt + 0163

magentadreamer

yasohail wrote:

Thanks for all your advice.

The debts that I have are:

Barclaycard Visa - $5000
Barclaycard mastercard - $1000
Adams card - $500
Topshop - $250
Mint - $2000
Overdraft - $1000
Capital One - $1000
Halifax Credit card - $1500
Nationwide - $1700
Kays Catalogue (account) - $300
Loan - $3000 (Alliance & Leciester)
Loan from dad - $1000
Car Loan - $2000 left

These are all the debts that I can think of. I don't know which ones to pay of first - I know I can pay my dad of last and my overdraft has low APR. Not sure what interest I'm paying for the rest.

I find the grabbit section of this website very addictive. It is the first part I go to when I turn the net on. Because it just makes wanna spend more.

Please help, is there any loan I can take to pay of all my debts.

I am from the UK. The reason I use this $ is because I can't seem to get the pound sign to work. Don't know whats wrong with my keyboard.

Thank you in advance.

My first thought are clear the store cards ie Adams and Topshop first as no doubt they'll have the highest apr . Cut up the plastic -do it now. Look at the apr's on all your cards -ring the companies and ask and then if you can shift debt to the cheapest one's. By having your debt say on 4 cards it will make things more manageable and also give you the feeling that there is a way out. Talk to your dad and explain how you're in debt and you will pay him back eventually just not now. Your dad is a 0% loan provider your priority is the one's chargeing 15% plus. When you've shifted debt make sure you close the accounts.

Set up a repayment plan for yourself after talking to your hubby and tell him how much you are in debt. There is a way out of this but it will take time.