High debts

sparklesocks_2

Hi,

A first post on here and looking for some advice.

I am full time employed and a homeowner of four years. After a little number crunching I have realised that I am nearly 70,000 in debt (not including a mortgage). I am more than shocked with myself but I am not sure where to start with trying to sort this out. I have cut down my spending drastically and I make all payments on my loans and cc on time each month. However, I am finding that I am living in my overdraft to make sure that I get to the end of the month.

I considered a loan to consolidate the 2 cc which would then leave me with a total of 3 loans. However, I was declined in June. Now I am too scared of even thinking of applying again. I have a 'fair' credit score.

Any advice on where I can start?

Thanking you in advance.

MrsSave

I'd start by filling out an soa. The link is below.

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

I would advise against consolidating. It very rarely works out for the best. People often spend on credit again whilst paying off the loan.

January2015

Be grateful you were declined that consolidation loan. That is what has made you face up to real level of debt you have. Consolidating rarely works.

As MrsSave above says, post an SOA and the lovely folk of this forum will be along to give you some great advice and guidance.

As you can see from my signature, 20 months ago we were almost £95k in debt (all unsecured loans, CCs and overdraft). We opted for the DMP route and I can honestly say it's been the best 20 months we've had for years. We now have to manage with a budget and know exactly what money we have and what it's for. We save for emergencies. We have completely trashed credit files, but are on the downward slope towards retirement and don't want, ever, to have credit again anyway so trashed credit files don't bother us.

Well done for facing up to things - work out a budget that is achievable, which includes a plan to clear the debt. Stick with it. Keep visiting this site - it is so motivational being able to chat with others in similar situations (because if, like me, you can't talk about your debt in real life you virtual friends on here are literally life and sanity savers).

Good luck.

rockabillygirl

Hi. As per MrsSave, fill out a soa and the lovely people on here will offer advice and guidance. Congratulations on your light bulb moment. I personally would advise anyone to think long and hard before taking a consolidation loan as without fixing the cause of over spending, you are likely to fall further into the pit of debt....having made the error myself! Good luck on your debt free journey.

enthusiasticsaver

Unfortunately there is no short cut to getting rid of debt. Consolidation is rarely the answer. The only way to reduce debt is to spend less than you earn which means either cutting expenditure as far as you can or increase income by taking a second job, a lodger, selling stuff etc etc.

I would say that it may help if you can get your credit cards on to 0% cards but as you have been declined this may not be an option. As others have said post an soa and people will suggest ways of helping. At least you are making payments still so it is not an impossible situation.