Time to change

Hannie35

For the last 10 years I've slowly been racking up debt, carrying on regardless very much in Denial about the situation, mostly by shopping and interest from credit cards. I live with my partner and our daughter Isabella who is just one, since she has been born I seem to have been spending more and more buying her clothes, toys etc. My partner is the complete opposite of me he is very careful with money, so I suppose he becomes frustrated at how careless I am with spending money. He pays for most bills, water, electric, gas, food.
I now have debt of about 20000, this is over a loan and three credit cards. I've only just returned to work after mat leave and only work twice a week so my income has decreased quite a bit. We both have helped to buy Isas which we have both been putting £200 pound into since last December, though my partner has helped me a little with putting the money in each month. We would love to buy our own house, but unfortunately because of my debt, getting a mortgage will be impossible, so the help to buy isa just seems pointless, which demotivitates me a lot.Im able to keep up the payments for the debts, though it leaves me with very little money each month.
I really need to try and turn this around for my daughter and partner, but find the whole thing overwhelming, I suppose the first step is always the hardest.

sourcrates

Hi,

And welcome to MSE.

First job is to compile and post a statement of affairs (SOA).

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

Remember to format for MSE.

Then we can see just where your money is going,

You basically have two ways to clear the debts, either by lowering outgoings, and/or increasing income, or some kind of debt solution.

The latter will have an effect on your credit file though, which could affect you for 6 years.

Get on with the SOA and we'll take it from there.

Fireflyaway

When this happened to me I contacted pay plan and entered into a repayment plan. Howeverr It depends if your income is enough to cover the payments or not. If you can keep the up to date its preferable as defaults will stay on for 6 years. Do a budget and see what's left to work with. Also watch Dave Ramsey's ' debt free screams' on YouTube. Really motivational. There are guys on there paying hundreds of thousands off so you can definitely do it if you have a plan.

DCFC79

How much do you have in the ISA'S ?

I dont know what everyone else thinks but could you not use the money saved to pay off 1 of the debts ?

I second the very good advice posted by Sourcrates.

ratrace

Fireflyaway wrote: »

When this happened to me I contacted pay plan and entered into a repayment plan. Howeverr It depends if your income is enough to cover the payments or not. If you can keep the up to date its preferable as defaults will stay on for 6 years. Do a budget and see what's left to work with. Also watch Dave Ramsey's ' debt free screams' on YouTube. Really motivational. There are guys on there paying hundreds of thousands off so you can definitely do it if you have a plan.

Totaly agree with this, when ever im feeling the itch to spend on crap... I watch his videos and the feeling goes

The amount of people on there that have high incomes but are so so stupid is unbelievable