Drowning in Debt

Danthewelder

I'm 28, with 1 child and another on the way. I work full time and earn 37k p.a. My wife works part time and will soon find her contract expired and will start maternity leave at 139.58 per week. Our childcare costs are 100 per week.

I have the following debts -

2 credit cards at 6500 (at 0% - rate expires 1/3/16 and 1/10/16)
A catalogue debt of 485 (at 0% - rate expires 10/8/15)
A graduate loan of 5532 final payment end of 2018
A loan of 4300 (for home improvements ) final payment June 2017
A loan of 8450 (for a car, but from my bank) final payment end of 2019
Sofas 1158 (0%) final payment July 2019
Overdraft of 80 (old account)
Overdraft of 460 (current account)

I have around 120 per week left after payments to live on (pays for shopping, petrol, life) and am sinking ever so slightly more into my overdraft each week as I am spending more than I earn. My partner doesn't like talking about money, as she feels as if I am obsessing or having a pop at her.

I have developed alopecia in the last year which appears to be getting worse, which I attribute directly to these problems.

My priorities at the moment are the old Overdraft, the catalogue debt before it reaches interest bearing levels and my current account Overdraft.

I don't know what to do really. Long term prospects are OK, as I will gradually pay down the debt, but short term I am struggling to make ends meet and missing out on.. Well everything really. I can't afford to really do anything and feel like I am wishing my life away.

HappyMJ

You might feel like you are drowning but look at the bright side. You'll be starting 2020 debt free that's only 54 months/payments away. You need to look at snowballing which is paying the debts with the highest interest first before paying the 0% deals off. You might go a little further into your overdraft in the short term until the first one is cleared in June 2017 but after that date the payment you were making to the home improvement loan can now be used to clear your current account overdraft then after a few months it can start clearing the other debts.

To me...it doesn't look that bad.

Danthewelder

Cheers Happy. There are definitely positives there, in that I can just about afford to pay the debt I have which will reduce over time.

The part I struggle with is keeping my resolve and not taking out further debt. I think if I was single with no kids I would find it easy to live an austere life and pay my debts more quickly, but there always seems to be something we 'need ' to buy.