Newbie in serious debt but feeling positive

marcus84

So today i have totaled up all my balances and came to the shocking figure i am in debt of £42300

How did things get so bad when just 8 years ago i had no debt at all. Well a house then lost house due to relationship breakup, a 10k overdraft added to my account, serious depression and stupidly spending to make myself feel better and they just kept giving and giving me. So now i have to pay it all back and its at the shocking figure over 40k.

I think it will take me 4 years to get back to zero but i really want to do it. Im in a better place mentally, no more depression, im not even letting this debt get me down. I am hoping to clear it sooner, people that know tell me to go bankrupt - i dont want too! I spent this money i will pay it back.

I wish there was an easy way, so im here to look for ways to boost my income to get me there!

LJB290

Its important to feel positive and make the changes necessary to move forward.
It certainly helps to have a plan and budget that you can stick to - I have found myself feeling more in control of the situation because of my plan.

Any extra work that can be taken on will boost your income so weekend work is always a good starting point but if you work full-time, you do also need some time off!

Good luck and welcome to the forum - there are some incredibly knowledgeable and helpful people here!

cakeforbrains

Hi Marcus. This is exactly the right place to be. People on here have repaid debt like yours, but it requires a completely reformed mindset.

The first thing people usually do is post a Statement of Affairs (SOA). Click on this link to fill it in, and then when you have finished format it for MSE using the button provided and then paste it on this thread. http://www.stoozing.com/calculator/soa.php

Then we can give you constructive advice.

Dobbibill

Hi marcus,

Welcome and congrats on taking the first step of your DF journey.

There is a 'boost your income thread' you may like to check out http://forums.moneysavingexpert.com/forumdisplay.php?f=145

I agree with PP's to post a SOA, the support and advice you receive then will be tailored to your budget.

DB

foxgloves

Ah, 'Payback time'. All of us on here have been there. You sound very positive & determined to tackle it. You're right that it will take time. Debts of that size don't instantly appear, & they take a long time to clear, but it can be done. You'll find loads of help & support on here. We're debt-free now, but I still post regularly on the Daily DFW thread because it focuses my mind on not going back to my old naughty ways with money....though I don't think that would happen now.
Don't forget the little things. Little insignificant things like not buying expensive coffees when out & about, making a packed lunch for work, using pound shops for basic toiletries like toothpaste, shampoo, etc, getting free parking even if it means walking a bit further, shopping at Aldi or Lidl, not buying takeaways, etc, & 100s more little things which added up, make a big difference to overpaying debts. We reckon we saved £2000 a year by making packed lunches to take to work instead of nipping in M&S or a cafe every lunchtime. I know that when people have changed to cheaper suppliers, swapped debts to interest free cards if possible & done all the big things, they often don't know quite what to tackle next, so my advice is all the small everyday things. Every £ saved is an additional £ for paying into those debts. Once you start getting into this mind set, you'll find loads of little ways to cut back. Yes, some people would say 'What's the point saving £1?' But as your debt-free-wannabe habits develop, you'll find saving £1 on maybe 40 or 50 things that week, then again the next week, etc, it becomes well worth doing.
Good luck! I can tell you from experience that there's nothing like the feeling when you are finally back in control of your money.
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walletmoths

Welcome Marcus - and really well done on facing up to your debts. That's the first and hardest step over with...

what really helped me was when I went to a free CAPmoney course - you can find them online. There's practically one in ever town at some point. It was 3 free evenings of money advice - DVDs - questionnaires - and I can't tell you how liberating it's been to think about money in a totally new way.

12_month_challenge

Hi Marcus and welcome aboard.

There are lots of friendly,non judgemental people on here that will guide you in the right direction.

Stick around and you will pick up some great tips and ideas on becoming debt free.
Have a read through the debt free diaries and you will see the amounts of debt people have repaid. Its a great inspiration.

Well done for taking the first step.
Good luck with your journey

uncreative

Stick in - you certainly have the right attitude. Make sure that you budget properly and that way you can pick up the extra few pounds and pence to throw at the debt. Use the snowballing calculator and that will serve as a great way of staying on track.