Advice needed On how to manage this situation

Mangoed

I've just come to the realisation that I am in debt and it's becoming completely unmanageable. I am going to call the national debt helpline in the morning when it opens and seek some advice. This is my statement of affairs including my husbands debts:

Barclaycards £6600
Wonga £600
Barclays loan £1500
Provident £1500
Catalogues £1500


We both work and earn 50k a year jointly. I have never missed a mortgage payment, but we have started to fall behind with the debts above. I'm stuck in a cycle with the pay day loan. I took it out originally as I had to leave a previous job due to bullying and spent a month off with my children. Then when I returned to work last month I didn't have money to pay the £700 upfront crèche fees so had to get a provident loan. I use to have a fantastic credit rating but over the last five years I have spiralled into debt.


I'm not a spendaholic, alcoholic, don't have big nights out or waste what I do have.


Can anyone give me some advice based on your own experiences.

DawnW

Why not have a look on Step Change's web site (just google Step Change) and look at their debt remedy? You will need additional information than just the amount you owe, such as your monthly outgoings, but might give you a few ideas?

staffie1

A full statement of affairs, listing every penny you both spend each month would be a great help so people can suggest where cuts can be made. There are links to suitable SOA template elsewhere on this site.


By the way, you don't need to be clearly overspending on luxuries. It's so easy for money to slip through your fingers unless it's managed properly.

Skinnylatte

My turning point was filling in one of these http://www.stoozing.com/calculator/soa.php and posting it here. That showed me the hard reality of how much I had for debt repayments, what I spent my money on, and allowed me to come up with a plan.
I also had some great suggestions for where I could cut my monthly out goings. Who new switching to a water meter saved me £277 a year!
I had to keep a spending diary for a few months just to establish where my cash was going.
Good luck, admitting my debt was my first step

dresdendave

Well done for realising you have a problem and resolving to tackle your debts.


You need to provide a more detailed SOA, there is a template somewhere on the site, sorry, not sure of the link. Basically it will mean listing a full breakdown of all your income and outgoings, plus relevant APR's for your debts.


Armed with this information MSE'ers will advise you where you can cut down expenditure and how to maximise the use of the savings to pay down your debts in the most efficient manner.


Good Luck


Bit slow typing, others have beaten me in saying pretty much the same thing.

seanavfc92

Mangoed wrote: »

I've just come to the realisation that I am in debt and it's becoming completely unmanageable. I am going to call the national debt helpline in the morning when it opens and seek some advice. This is my statement of affairs including my husbands debts:

Barclaycards £6600
Wonga £600
Barclays loan £1500
Provident £1500
Catalogues £1500


We both work and earn 50k a year jointly. I have never missed a mortgage payment, but we have started to fall behind with the debts above. I'm stuck in a cycle with the pay day loan. I took it out originally as I had to leave a previous job due to bullying and spent a month off with my children. Then when I returned to work last month I didn't have money to pay the £700 upfront crèche fees so had to get a provident loan. I use to have a fantastic credit rating but over the last five years I have spiralled into debt.


I'm not a spendaholic, alcoholic, don't have big nights out or waste what I do have.


Can anyone give me some advice based on your own experiences.

First of all, well done for prioritising your debts.

I, personally, would cancel your Direct Debits for these debts (and the Continuous Payment Authority for the Wonga loan) as soon as possible.

Get in touch with NDL tomorrow, or even try Debt Remedy tonight as mentioned. You need to make sure the money coming in is being used to cover your essential living costs.

NDL or StepChange will create a full budget for you and see what available surplus you have left every month to pay off your debts.

Remember: help is available. You're not on your own in all of this.

Good luck.