My Terrible Financial Situation

Stormer79

Hello,

Joined here in the hope I might be able to get some advice.

The facts:

I'm 37, live in rented accommodation, have no savings and no pension beyond my work pension scheme. I am also £7700 in credit card debt. I earn 30k a year and my job is reasonably secure until 2020. As you can imagine, I'm rather stressed and feeling like there's no hope. I would like to build up savings and clear my debt as well as contribute to a pension but have absolutely no idea where to start.

Any advice will be greatly appreciated as beyond some manner of miracle/lottery win I'm feeling pretty depressed and like I have no future beyond hoping for an early death. I'm also perfectly aware that my situation is bad and I am entirely responsible for it.

tallyhoh

7700 doesn't seem so terrible to me unless there's a few noughts missing.

Suggest you post a SOA (income & expenditure) for others to see if there's anything to be cut back on, http://www.stoozing.com/calculator/soa.php

There is also a snowball calculator for your credit cards

datlex

What is bad about your situation? Nothing wrong with being 37 and living in rented accommodation.

How much are your payments to your credit card each month? Are you adding to the £7700 or was it originally higher. Can you afford this amount, are you paying interest?

sourcrates

I have a feeling, from the tone of the OP's post, the figure should be £77,000 is that correct ?

Meepmeep

I don't have a quick fix I'm afraid. But I was in a similar position to you for all my 30s (and my 20s but I don't count them as I spent most of them drunk and don't recall the debts ever seeming that bad.)

I found being in debt difficult in my 30s as this is when it became more apparent as my peers started to get on housing ladder / up the job ladder / combine incomes.

So, don't feel alone. There are plenty of people who are in a similar position. Many people don't tackle their debts until much later. If you sort this now, you've hopefully decades of smart money use ahead of you.

Try not to think too far into the future if all you think about is not having any retirement cash.

Is there anything you can do to help reduce your living costs? If you live alone can you move and flatshare?

I know everyone says it - but do a SOA.
It will become clear where you can save on your outgoings

Stormer79

Hi guys - the amount is £7700. That's a lot of money to me. I've spent most of my life in low paying jobs and living hand to mouth. I've worked very hard the last few years to earn more and get into a better job.

From the tone of some replies it appears that I shouldn't be so worried but afraid I can't help it.

I do not use my card for anything now and only spend what I have. I make the minimum payment each month because I wanted to build to some money up to replace my old car (which I've done) and have some money available in case of an emergency. I'm aware that's not the best strategy so advice/calling me thick as long as it comes with constructive suggestions is much appreciated. I live in a flat share and I've done a budget of what I spend. Realistically I'd like to start putting £200 a month into a private pension and up to £500 to one side for savings/clearing the debt.

sourcrates

I really wouldn't be too worried about a 7 grand debt when you earn 30k a year.
It's very do able, with the right strategy, initially I thought you'd mis-typed and meant £77,700.

You'll get lots of advice on here for budgeting and overpaying etc

Spoonhead88

Stormer79 wrote: »

Hi guys - the amount is £7700. That's a lot of money to me. I've spent most of my life in low paying jobs and living hand to mouth. I've worked very hard the last few years to earn more and get into a better job.

From the tone of some replies it appears that I shouldn't be so worried but afraid I can't help it.

I do not use my card for anything now and only spend what I have. I make the minimum payment each month because I wanted to build to some money up to replace my old car (which I've done) and have some money available in case of an emergency. I'm aware that's not the best strategy so advice/calling me thick as long as it comes with constructive suggestions is much appreciated. I live in a flat share and I've done a budget of what I spend. Realistically I'd like to start putting £200 a month into a private pension and up to £500 to one side for savings/clearing the debt.

Sounds like you have a plan and know what you are doing.

Your debt free date if you stick to the £500 will be Dec 2017 and at £200 a month into a pension you will have £3200 by Dec 2017.

If you put the full £700 into paying off your debts it will make your debt free date July 2017. Then after you debts are gone if you put the full £700 into a pension by Dec 2017 you will have £3500.

Stormer79

Spoonhead88 wrote: »

Sounds like you have a plan and know what you are doing.

Your debt free date if you stick to the £500 will be Dec 2017 and at £200 a month into a pension you will have £3200 by Dec 2017.

If you put the full £700 into paying off your debts it will make your debt free date July 2017. Then after you debts are gone if you put the full £700 into a pension by Dec 2017 you will have £3500.

Thanks, I think my problem is that I've never really understood how various accounts, etc... work. Stupid I know but one of the main reasons I'm on here is for this kind of advice. Really appreciate your response - thanks for taking the time.

stingey

Stormer79 wrote: »

Hello,

Joined here in the hope I might be able to get some advice.

The facts:

I'm 37, live in rented accommodation, have no savings and no pension beyond my work pension scheme. I am also £7700 in credit card debt. I earn 30k a year and my job is reasonably secure until 2020. As you can imagine, I'm rather stressed and feeling like there's no hope. I would like to build up savings and clear my debt as well as contribute to a pension but have absolutely no idea where to start.

Any advice will be greatly appreciated as beyond some manner of miracle/lottery win I'm feeling pretty depressed and like I have no future beyond hoping for an early death. I'm also perfectly aware that my situation is bad and I am entirely responsible for it.

Hi Stormer79, yeah it's very daunting and scary, but the good thing is you've identified it and are working on it.

I've also recently got to grips with my finances and debt, simply because I feel it's controlling my life. I'm following the advice given and snowballing my debt to pay it off quicker. I too would like savings and put more into my pensions but the debt needs to go first.

I too am 37 and feel like time is running out for me saving for a deposit on a house etc. What's making me angry is the debt I've ran up rather than using the time to save...

But stick with this site and you'll find loads of tips and good advice here and loads of support. You'll get there!

Stormer79

stingey wrote: »

Hi Stormer79, yeah it's very daunting and scary, but the good thing is you've identified it and are working on it.

I've also recently got to grips with my finances and debt, simply because I feel it's controlling my life. I'm following the advice given and snowballing my debt to pay it off quicker. I too would like savings and put more into my pensions but the debt needs to go first.

I too am 37 and feel like time is running out for me saving for a deposit on a house etc. What's making me angry is the debt I've ran up rather than using the time to save...

But stick with this site and you'll find loads of tips and good advice here and loads of support. You'll get there!

Thanks for coming back to me - I really have only just come to terms with this and that I need to get it sorted. It does seem that I need to address the debt first and look at savings and pension later so I'll rebudget with that in mind.

Do you find it difficult to spend money on other things? - for example, I need to visit Japan/HK in April of next year so will be building savings for that trip - I feel this will inevitably impact on my efforts at debt clearance and am feeling a lot of anxiety over it.