Debt of over £110,000

mfp

OK - this is going to sound very snobby and spoilt!! We currently have around £112k in debts spread over loans and credit cards etc. The issue is that we are comfortably paying the loan payments and credit cards and still have a couple of hundred pounds left each month after all our bills etc. are paid. Problem is (and this is the snobby part), with only a few hundred pounds left each much we can't really save for a decent holiday (please don't strike me down!!). Is there a good way to get this debt down quickly?

pointypenguin

Are you only paying the minimum on the credit cards? Also what do you count as a decent holiday everyone has different ideas about this I am sure.

I am not stiking you down but if I had that amount of debt that did not include a mortgage I would be questioning if I could really afford a "decent" holiday or any holiday at all. Is your debt a result of previous holidays?

As for clearing the debt if you do a SOA (sticky at top first page) people will be able to give some advice.

Eager_Elephant

Hi mfp

Was it the decent holidays that caused this mess??

You need to get out of the mindset that you deserve a decent holiday every year, a few short breaks spread throughout the year would be better.

To get the debts down quicker you could snowball the money you have available for holidays. So with your credit cards you pay all your holiday money to the credit card with the highest rate of interest. Soon this will be paid off and then you use the holiday money plus the money that was the minimum payment to make extra payments to the card with the next highest rate of interest.

As time goes on your snowball will get bigger and bigger just like a snowball going down a hill.

I assume you are able to meet your minimum payments??

EE

mark55man

just stop spending so much - not snobby just unrealistic, and at huge risk should anything go wrong.

not quite been there done that but i wish I had started to cut down 3 years earlier than I did

naughtymittens

The obvious way would be to use the extra you have left to overpay the debts. Are all of these debts 0% and if so for how long. I would be worried about such a level of debt and wouldn't even consider a holiday, I would be looking at throwing all extra at the debt.

JES_F1

I'd agree with one of the other posts - not snobby to expect a decent holiday but unrealistic.

One of the main reasons I got in a financial mess was that I liked going away on about half a dozen wonderful 5* luxury short breaks each year.

Part of me knows exactly where you're coming from as I used to think exactly the same way. The 'newer me' goes :eek:

When I finally had my lightbulb moment, knowing the holidays and nice things just couldn't continue, I thought my debts were 'only' about £25,000 - instead they totalled over £45,000.

You may need to revise your definition of 'decent holiday' and/or be prepared to hunt out the bargains. I've still managed to enjoy a couple of wonderful weekends away - I even stayed in a high-end 4* London hotel for an absolute bargain price by booking quite a bit in advance and checking how the price differed across several weekends.

Good luck and very best wishes for sorting out your debts.

fabforty

Here's the bad news. You cant afford a holiday, decent or otherwise. Working on the assumption that nobody runs up 110k worth of debt, if they have the money to pay for things, you are either living totally beyond your means now or at some point in the past. You say that you are cmfortably paying your debts each month and still have a couple of hundred left. This suggests that you are paying the minimum but doesn't explain why you are not putting every spare penny into clearing these debts. Forget holidays and get in touch with one of the free debt advice organisations to get some constructive help and advice in clearing that debt. Or keep your fingers crossed and pray that neither you or your partner become ill, have an accident, are made redundant, go out of business, because with that level of debt any one of those things could/would spell disaster in a reltively sort period of time.

Darnit_2

you haven't had your light bulb moment yet, and you really need to have it....it isn't your money you are spending, so you aren't as weathy as you thought you were, just because you can afford the payments now....

sorry to sound harsh, but been there....

DarkConvict

Agreed, you haven't had your light bulb moment, there are some on these forums that have cleared 100k of debt in just over 6 years, but this involves tremendous effort and dedication to saving as much money as possible whilst trying to earn as much as possible, any decent holiday is going to swipe out a chunk of cash and make it much worse.

Have you read the report, that credit card minimum payments of 2% would take 15 years to pay off, but at 5% it would take just 7%. That money you spend on a holiday could set you back 1-2+ years each time for getting debt free.

Its harsh but you need to come to terms with it, and i advise you ring a debt charity asap, National Debtline, CCCS, Payplan or CAB will be a good place to start. If you have no assets, low income and little hope of paying it off bankruptcy maybe an option.

advent1122

Why not get another loan to have a lovely holiday.
After all, the extra few hundred pounds a month could go to pay of this loan.

Anyone else smell a troll...

slummymummyof3

Quite clearly you can't afford a holiday now or in the near future! If you could you wouldn't have these debts.