feel ashamed by our debt level

midlander81

Thanks for all of the posts folks - it's really reassuring to know that others have dealt with similar and higher debt levels.


I think a lot of my worries stem from the fact that no one in my family or close circle of friends have these sorts of debts. I always think how horrified they would be if they knew how much we owed. I know that in reality it's not their business but it still bothers me.

Puddylove

Many people (like you) have debt that no one knows about - when I told some friends I was living on a budget (apparently affluent friends), they told me they owed much, much more.

So you might be surprised!

SOMam

I read somewhere that one way or another all households have debts. I like to think that those who say they have no debts are fibbing or in denial

Teacher2

Good luck with getting the debt down. I would concur with the above posts, that acknowledging you need to do something is more important than the level of debt. You have a good joint income and have started the process of repaying so you should be able to pay off what you owe. The first step is making a spreadsheet outlining income and outgoings. Remember to factor in future liabilities and 'save' for them. For instance, if your household fuel bill comes out at £1,200 for a year, put by £100 a month to meet it.

I have always kept an account book and know exactly where every penny is and believ this is the secret of solvency. I put my OH's salary sum and my own pension sum into the account book on the 21st of every month and I immediately take away a sum for 'Standing Orders' which covers every other bill I will have to meet for the month. Then I know how much I really have to spend.

Once you are in a position of knowledge - and here knowledge really is power - you can start looking for ways to cut back. The thrift pages on Martin's Fora are brilliant sources of retrenchment. Some immediate ideas are as follows:-
For the duration, until you pay back your debt, cut out entertainment, clothing and presents. Tell your friends and family what is going on and have a 'no presents' arrangement for birthdays and Christmas. They don't buy you one and you don't buy them one. You could also:-
-Have only one day a week/month socialising. Take cash and stop when it has run out.
-Take pre-made sandwiches/lunch to work.
-Buy NO drinks out of the house. They cost a fortune. Take water/drinks in a bottle.
-Avoid places which will tempt you to spend money: shops, pubs, clubs etc.
-Overpay your debt as much as you can to reduce it as quickly as possible.
-If you still have surplus at the end of the month, consider using it to overpay and 'dump the debt'.
-Ditto your savings.
-Find a true friend whom you can call/talk to when you are depressed or want to give up and have a splurge. Ensure it's someone who will persuade you to keep going, not someone who will encourage you to indulge yourself.

The most important thing is to realise that life isn't a picnic. You are not going to feel too good in the short term but you will feel a massive sense of achievement when you finally pay off this debt and you realise that your bad habits are gone for good.

Finally, if you do have a 'wobble', don't worry. It won't have ruined everything, get back on the bike and keep peddling. One piece of cake won't ruin a diet if you get back to it. Good luck.

On_my_way

I think 40k of debt is more common than you think - a lot of people on here probably started out with at least that amount of debt - they are just further along in their journey of paying it off!

National_Debtline

Puddylove wrote: »

Many people (like you) have debt that no one knows about - when I told some friends I was living on a budget (apparently affluent friends), they told me they owed much, much more.

So you might be surprised!

This is absolutely true. An incredible number of our callers haven't told a soul about their debts. It can be a very taboo subject for many people.

- David.

midlander81

Thanks for all of the posts folks - I have found them all to be very reassuring. I agree that many of my friends and family probably do have some debts too although I still think struggle with the amount that we owe.


Gonna try and focus my energy of getting them down asap.

LAM2011

Good luck. Plenty advice and support on here - I have become debt free this week and my debt ratio was the other way round. I had debt over £30k and only earned £22k - thats when reality hit. I have managed to do it on my own but its been hard and emotionally draining at times. Never feel bad asking for help. Think to the future as well as for the now.

midlander81

LAM2011 wrote: »

Good luck. Plenty advice and support on here - I have become debt free this week and my debt ratio was the other way round. I had debt over £30k and only earned £22k - thats when reality hit. I have managed to do it on my own but its been hard and emotionally draining at times. Never feel bad asking for help. Think to the future as well as for the now.

Well done - That is amazing and is really helps me to see that our debt is actually manageable albeit annoying!!


Do you have any tips that you can share with me?


Well done!!


Midlander.

LAM2011

I did things a bit differently as I was so desperate to be debt free. I was very unhappy at the time and felt trapped. I never posted a SOA as I didnt budget for anything which is NOT the right way of going about it. But to be honest in the beginning there was no spare cash to budget for anything except the debt. It was only later in 2012 that I started to allow myself £20 pocket money a month.

I learnt that every penny does count - coins in jar soon add up to a fiver, I used swagbucks, survey sites, TCB - all adding little bits - I had 5 credit cards and I just tackled one at time.

What works for one might not work for another. Only you know where you can cut back, how you can make extra and which debts need sorting first.

Good luck