I'm new here and I have a plan!

mummy_indebt

Hi all,
I'm new here and just want to share what I hope will be the beginning of my journey out of debt!
I spent all of today getting all of my paperwork together and have worked out that in total I have 17 creditors totalling £23,005.
Of these 17 I am actively paying 5 of them and should have them cleared within the next 10-12 months.
Then out of the 12 that are left, 6 of them are relatively small amounts and I should be able to clear them over the following 6 months.
After that, I will only have 6 creditors but they add up to £16,279.
The 2 largest amounts are £7,379 and £3938. The rest are between £1500 and £2000 so I will work on these first and then deal with the largest ones last.
I have already dealt with my spending and not borrowed any more for quite a while, but haven't been able to start dealing with my debts as I have been on maternity leave. I start back work next week so should have enough money every month to pay my bills and beat the crap out of my debts!
Looking forward to getting rid of them once and for all. I know it will take a while but I will get there!
Any helpful advice would be greatly appreciated!

kazwookie

These debts, are they on a credit cards and if so what are the interest rates?

fatbelly

Have you considered dealing with all your non-priority debts on an equal basis by pro-rata distribution of your available income?

We know your total debt. How much will you be paying off each month?

mummy_indebt

My debts are made up of various credit cards, store cards, unsecured loans, overdrafts and payday loans. Most of these date back to quite a few years ago and have been passed around debt collection companies so there is no interest being charged on them anymore.
The ones that I am paying back just now are 2 catalogues (on my mum's account), Provident loan, a small payday loan and university course fees.

mummy_indebt

I think the best way to manage my debts is to try and reduce the number of creditors first. My smaller debts range from £71 - £510, so by clearing these off completely over a few months, this gets rid of them completely leaving me to fully concentrate on the bigger debts by themselves, instead of paying a couple of pounds to the smaller ones each month; which is what I would have to do if I divided my available money between the 17 creditors in order of priority relating to the total amount owed. At the moment I will be paying £360 per month towards my debts.

FLAPJACK

Rule of thumb is to try and reduce/payoff the highest interest charging loans, in you case I suspect the storecards will be your first target.

It's good that you have already faced upto the numbers....just make sure that the £360 pm doesn't leave you short!

Very best of luck.

matttye

How many years is 'quite a few years ago' ? If you haven't paid or acknowledged a debt in 6 years or more it becomes statute barred, meaning its unenforceable in court.

ellesbellesxxx

Good luck! Sounds like you are facing this journey with a great positive attitude