Drowning in debt - please help!

Bestthingsinlifearefree

orton7 wrote: »

It might seem like the obvious solution, and you're right, we are fortunate in that we have a lot of equity in the house. But if you read back through the thread, I explained elsewhere that it wouldn't make sense to move, and fork out 50 grand just to do so (ie stamp duty, moving costs, legal fees etc), only to have to do it again in a couple of years time. We are not in a position to make that decision at the moment as we don't know what's happening to my husband's job, so would be daft to move now, only to have to move again in a year's time. Meanwhile I want to get to grips with our out of control spending - because even if we did move and clear most of our debt in one fell swooop, if we don't take control of our spending then we could easily find ourselves in exactly the same situation in a couple of years time. Not a situation I want to be in.

I agree 100% with your logic on this one Orton. Moving does nothing to solve the main problem ie your spending behaviour patterns.

You can use the desire to stay in your exisiting home as a great motivational tool. i.e I am going to cut my spending because I don't want to lose or down grade etc from our current family home.

M20DAL

could you take out a bigger mortgage to clear your debt so they are all in one place with a better rate

orton7

Yup, you're right. It's time to stop spending! I reckon that we can easily cut back about £1000 a month of our current outgoings. Which seems a lot, but when you think we've got £100,000 of debt, it will take about 100 months to pay off ie just over 8 years - a long long time to endure penny pinching. But we don't really have a choice. And hopefully our incomes will increase in the coming years.

lynzpower

M20DAL wrote: »

could you take out a bigger mortgage to clear your debt so they are all in one place with a better rate

very bad idea. Put the figures into snowball calculator to find out why. Plus its never a good idea to secuire borrowing where its currenly unsecured.

orton7

M20DAL wrote: »

could you take out a bigger mortgage to clear your debt so they are all in one place with a better rate

We've already remortgage twice in the past few years, and it doesn't seem to resolve the situation. Rather than taking on more debt, I think we have to face facts and start sticking to a budget rather than spending wildly without considering the consequences.

Burlesque_Babe

100 months might seem a long time, but once you get into the swing of it, you will start to see more ways to save and as the months go on,you'll be surprised at how you can bring your debt free date that bit closer.

orton7

hmm, I hope you're right. It seems a daunting task, but I'm determined to see it through.

*zippy*

Just wanted to also say welcome orton :hello:

Reading through your thread confirmed why I love this board so much, you have had some great advice, hope its made you feel positive that you will sort this :T

Burlesque_Babe

it is a daunting task, but you'll soon become as obsessed as the rest of us!!

100 months might seem a long time, but imagine how long all the loans etc will take to pay off if you don't batten down the hatches now.

juliapenguin

orton7 wrote: »

Yup, you're right. It's time to stop spending! I reckon that we can easily cut back about £1000 a month of our current outgoings. Which seems a lot, but when you think we've got £100,000 of debt, it will take about 100 months to pay off ie just over 8 years - a long long time to endure penny pinching. But we don't really have a choice. And hopefully our incomes will increase in the coming years.

Hi!

Try not to think of it as penny pinching to be endured - once you get down to it you will find there are lots of benefits as well as losses. You all, including the children, will hopefully get a much greater satisfaction from the fewer things that you have, and you will learn new skills and discover new pleasures.

I had a LBM when I became too ill with anxiety to carry on with my stressful office job (left for good an hour ago!!! will be starting an MA at uni in October) and we realised that we were going to have to live on one income minus uni costs when we were spending every penny of two incomes. We have slashed the food budget and have never eaten so well, eliminated the eating out budget and have had more fun with cooking for friends and picnics, we've just had a much better time than we ever thought possible on so little money!

I appreciate the difficulty of having big spending friends - when I was in debt myself after XOH scarpered with my ex best friend :eek: it was hard for me and my little boy that most of our friends were better off than us. My new non-evil best friend :rotfl: is very very well off (similar income to yours and spends a fortune but no debt) but has been fantastically understanding and sensitive. Instead of meeting for lunch and shopping once a week we have been to a local museum, had a craft-making session and gone for a couple of walks - she's enjoyed it as much as I have. She's pleased for me that I'm fulfilling the dream of going back to study and is happy to support my efforts. I know that being in debt is much more embarrassing than going back to study, but people can be so kind when they know the facts.

Please please don't get down seeing this as a 100 month grind - it's not, it's a new adventure. Check out some of the simple living websites and try to convince yourself that this is voluntary and not enforced simplicity!

Good luck to you, and I really hope your OH comes on board very soon.

Julia xx