SOA advice please

Freddiesmum

Hi I'm new today and need a bit of help please. I have over £10k of debt and need to start sorting it out. I think my only options are DRO or BR. I'm trying to do my SOA. I've had a terrible 18 months health wise and would love to take a little break later in the year, is this something I am allowed to account for? I just wondered if it is a little indulgent considering my finances. Thank you in advance

Ebe_Scrooge

BR is a drastic step, and should really be considered as a last resort. Start out by posting your SOA on here, folk will be happy to make suggestions as to how you can begin to tackle the problem.

WillyWonga

For £10k of debt BR is about drastic, it can normally be controlled on a DMP. A break is not frowned upon as sometimes needed to unwind health wise which will make you stronger to succeed. A break in the UK is ok, a break in Spain for example is a no no when trying to climb out of debt.

Soundgirlrocks

WillyWonga wrote: »

A break in the UK is ok, a break in Spain for example is a no no when trying to climb out of debt.

Surely that depends on the cost of the break not the location?

enjoyyourshoes

I personally would solve the debt problem, then save for the little treat.

Otherwise the habits that got you into the debt have not been resolved/solved.

MrsSave

We're currently paying off a similar amount of debt. Have paid off around £4k already. Whilst paying this off we have been away a couple of times. Some would prefer to throw any spare money on the debt, others are happy to pay it off slower and enjoy a little more on the journey. I'm definitely the latter. We budget for a holiday, save for it and make sure we pay it with saved money and not add to the debt. We usually head somewhere like Center Parcs (term time......far cheaper) and eat in mostly during that week. We usually have 1 meal out as a treat. We've got our next trip already booked and paid for in full.

Someone mentioned going abroad is a no. I disagree. Though we haven't been abroad for years, (seems too much like hardwork with very young children personally!), it can work out cheaper than holidaying in the UK if you find good deals.

I would recommend posting your soa here. You will get plenty of suggestions about the best way to tackle your debt.

enthusiasticsaver

Why do you think a debt relief order or bankruptcy is the only option? Are you unable to make minimum payments? I would suggest you post an soa here so we can give you the right advice for your situation. If you go down the dmp or bankruptcy route this has a severe effect on your credit rating and seems extreme for £10k of debt unless you are on a very low income or unemployed.

Spending on a holiday is something which would need to be budgeted and saved for and this would depend on your income and outgoings. If this is likely to be a long term plan to repay the debt then a small holiday fund is not unreasonable. Maybe a caravan or cottage holiday in the UK or cheap package holiday depending on your budget. Personally I would prefer to be debt free before paying out on holidays but some would rather delay paying it off to allow them some money for extras like holidays. Whichever route you choose you should save for it and not borrow.