Major reality check this evening

brokebirdy

So tonight I finally faced up to the mess that I/We are in. We owe 45k in unsecured debt. I am shocked. I knew it was a lot but didn't think it was quite that much.

I am going to talk to my wife about it over the weekend. She knows that we have a lot of debt but not the totals.

I will do a proper SOA at some point but in a nutshell....

Income ( joint) - £4200
Outgoings ( all bills, mortgage and minimum debt payments) - £2500
Food/fuel - 400

Surplus - £1300


I am in a state of panic/shock at the moment. Can we fix this or are we screwed?

Orange_Ena

Welcome to MSE.

I think Martin says that he's never seen a debt problem that can't be fixed so no, you're not screwed

It sounds like you have a good surplus and when you post your SOA, people can make other suggestions that might get you to debt freedom quicker With that surplus you could be debt free in less than 3 years, or less if you have scope to really cut back. Some people take the direct route, some the scenic, it's whatever works for you. But you can do this :T

Well done on having your LBM, that's the first step really.

Good luck

Smodlet

Hi and welcome from me, too. What Orange Ena said, in a nutshell. You have taken the first and probably most important step. This forum contains many inspirational tales of people who have done exactly as you have, thought they would never make it... and have come out the other side. Many are still on the journey but all, from what I have read, started from the same place as you. You can do it, it will be tough, there will be times you feel like giving up but that gets you nowhere, right?

Is your wife on board with this? Are all the debts yours or are they shared? It is possible to go it alone but, as with everything else in life, it is a thousand times easier if your partner has their shoulder to the wheel right next to yours.

You will be amazed at how much you can save and in how many different ways, some large, some small. Post your SoA, you will be deluged with suggestions, most of them helpful but you might need to prepare for some criticism, too.

Well done on your LBM and for making that first step. You are in the best place now you are here.

fatbelly

I'm subscribing to the thread so I can have a look at your statement of affairs when it appears

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

poppasmurf_bewdley

First of all, congratulations on having your lightbulb moment. Many of the regulars on this forum have been through it themselves so know how you are feeling.

Although my debt wasn't as high as yours (£14k), most of which came from being made redundant after 20+ years with the same outfit at the age of 45, it took several years to get clear. It also led me to heaving the other half over the side, so to speak! But I'm not suggesting you have to go that far!

Post your SOA and you will get plenty of good advice.

Moneystootiggttomention

Hi! I have put a similar post on here last week, my husband has 35k of debt and me 10k. It feels so overwhelming! We have a similar income to you and are just working out our SOA, good luck!

enthusiasticsaver

Yes you can fix this. Put up a statement of affairs.

First thing is to get as much of that 45k on 0% cards if you are still able to get those deals

blisteringblue

With that amount of surplus you should be able to fix it in no time. Couple of points below with no.1 being the most important

1. Control the Overspending, no point doing anything if you don't. You are taking home what roughly 90k between you, and you still have debts of 45K
2. Have a look here http://www.whatsthecost.com/snowball.aspx, I think a snowball is your best bet. Basically throw as much money as you can at the debt with the highest interest, and then when that is paid up, snowball that payment onto the next highest. Put your numbers in you will be amazed at the results. We were trying this until Mrs BB decided to quit and goto uni, which threw us into a DMP but its all going well.

Anyway get that SOA up here and the clever folk will dissect it with a fine tooth comb. You will have to change your ways, but you soon get used to it.

January2015

Hi
Welcome to the DFW forum. Yes you can fix this. Look at my signature - we were almost £95k in debt (unsecured) when we started. We still have a long way to go but are close to owing £81k now. Still a massive amount.

What I can say, is the time since we had our LBM has been the happiest we have been in years. We both know exactly what money we have, what it's for and we actually save for things now - which had never happened pre LBM days.

We took the DMP route - which is not for everybody, and you may not be at the point you need to consider this as an option. Whatever you do, it's not always easy, but if you work out what you need to do to clear those debts and stick with it, it really is life changing and becomes an obsession to see those debt balances drop.

The biggest tip I can give you is to become a regular reader of this forum and don't hesitate to ask for advice / help. There is no such thing as a stupid question - if it's related to debt, someone here has been through a very similar scenario and has the knowledge to help you through it.

Good luck with your DFW journey

Wimbrel

You absolutely can fix this. Get the snowballs rolling and everything speeds up amazingly. In 2012 I was pretty much where you are today. I just did the sums to update my sig and I'm looking at debt free by the end of January 2017 and with, for the first time in ever, a decent emergency fund.

rockabillygirl

Congratulations on your light bulb moment and good luck with your debt free journey. There is a huge amount of support on here from lots of lovely people who will help you through.