£23500 in debt - feels like Im never going to clear it!

sxcizme3010

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greensalad

First, you need to have a proper look at your finances and where your money is going. You should be able to see and know exactly what you're paying off.

To start, get all your financial paperwork and complete a Statement of Affairs. Do this accurately, you'll need to open up your bills and accounts to work out exactly how much you're spending:

http://www.stoozing.com/calculator/soa.php

Posting your SOA up here will allow members to help you identify where your money is going. It will also give you the amount you have for monthly debt repayment.

Once you've got your monthly repayment figure in your mind, you can input all your debt data into a snowball calculator. This shows how you should assign your money to have the most impact and clear your debt the quickest.

http://www.whatsthecost.com/snowball.aspx

Looking forward to hearing back from you with these figures.

National_Debtline

Hi

Just to add to greensalad’s good advice, the amount you realistically have available to pay debts with on your SOA will help you decide what sort of action you need to take to deal with your debts.

It may be a case of paying them off in the right order to clear them as quickly as possible but if you find that you can’t realistically afford the minimum contractual payments you may need to consider other options. Depending on your situation you may need to negotiate reduced debt payments and frozen interest yourself, try a debt management plan, or consider insolvency options such as an IVA or bankruptcy. All of those options will have a negative impact on your credit score though.

James
@natdebtline

enjoyyourshoes

you need a paradigm moment:- stop spending and use this spare money to pay off your debts (generally speaking highest interest first). Start analysing your spending and shopping habits. Save on food by trading down on brands, meal plan, scratch cook and freeze (cook one day week, freeze for the week 9mains, lunches and desserts) and take out when you need them. Freeze bread and milk and ''daily consumables that when they run out forces you to mid week shop''. This then allows you to shop weekly or bi-weekly. Do list and only buy on list. Compare prices by volume, weight and unit size, not what's on offer or 241. Pay for insurances up front and save for next years premium, don't do monthly as they charge you interest. Reduce your SO/D to essentials, get rid of sky, virgin and al these other entertainment stuff no-mater what you other half says ! But most importantly agree with household what your objective is, get clarity and agreement on what this means and looks like and have the shift from spending to saving (once you have paid off your debts you need to save !!)

andyfromotley

An often overlooked aspect of debt repayment is increasing your income.

Seek promotion
Ask for a pay rise
Change jobs for better pay
Change job to significantly reduce commute (being able to get rid of a car is a huge financial win)
Seek new skills for which you will be paid more.
Overtime
Second, third or fourth jobs!!
Sell everything!!!

This can make huge inroads into your debt.

rockm87

totally agree with posting a SOA, people on here work wonders with those! It's better to see everything right in front of you than worrying about what might be.

I've seen many people on here with a lot more debt, and in dire need of a boot up the bum...haha....so I know you are going to be fine! ;-)

sammey90

Wow!

Not, "Wow, £23,500, that's huge!", but, "Wow! You've faced up to it, found out what you owe, added it up, and are figuring a way of dealing with it!"

Every penny you pay off is a penny less you owe xx

(I'm so impressed because I can't do this yet, my lightbulb is still a bit dim!)

sourcrates

sammey90 wrote: »

Wow!

Not, "Wow, £23,500, that's huge!", but, "Wow! You've faced up to it, found out what you owe, added it up, and are figuring a way of dealing with it!"

Every penny you pay off is a penny less you owe xx

(I'm so impressed because I can't do this yet, my lightbulb is still a bit dim!)

When i first read it, i thought it was £235.000, must use my glasses more often, SOA the first thing you should do, so we can have a better idea of your situation.

QueenBeruthiel

What about incomings?

rockabillygirl

I know it's scary, but well done for the steps you've taken. You will get great advice and support from the lovely people here.
We owed a lot more than you, and although it has taken time, we are finally getting there. Stay positive (not always easy I know) and be kind to yourself.

sazaccount

Hi,

We done for having your light bulb moment... It may flicker but remember at the end you will be debt free!! and what a future it will make for your little ones!!

I agree with greensalad to do a statement of affairs, SOA, try and get all of your bank statements for the last couple of months together, look at all of your out goings rent/mortgage, car stuff so MOT, insurance, tax etc if these are paid for yearly divide by 12 to get the monthly amount.

It maybe scary and time consuming but post it up here and the lovely members can look though and give you pointers on where else you can cut back, be honest with it, it maybe embarrassing, (i'm not saying you do) but eg spending £500 a month on entertainment. It will open your eyes on where you can cut back!!

Have a look at the stuff you already own and maybe sat in storage, the attic that you can sell. That toy or clothes that the LO's no longer use. Facebook is a great way of having a clear out or local car boots. every little helps!! you can start over paying things such as the credit cards and they will soon be gone.

Good luck the lovely members on here have some great advise!