12K in debt, feeling pretty low!
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DanielDanielson
Posts: 1 Newbie
Hello MSE!
Bit of backstory, I'm 23, with a child & separated from the mother and living with parents.
A lot of stupid decisions caused me to rack up a 12K debt, I want to get my life in control but it currently feels like an impossible task.
I earn 22k a year but whenever I create a budget, I can never stick to it.
Any advice would be greatly appreciated.
Bit of backstory, I'm 23, with a child & separated from the mother and living with parents.
A lot of stupid decisions caused me to rack up a 12K debt, I want to get my life in control but it currently feels like an impossible task.
I earn 22k a year but whenever I create a budget, I can never stick to it.
Any advice would be greatly appreciated.
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Comments
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If you're struggling to stick to a budget that suggests that it's not a sustainable one. If I were you I'd use the link to the SOA (Statement of Affairs) we use on here - you'll find it in the "Sticky" thread at the top of the board here. Fill it in as accurately as you can - use bank statements and card statements going back 6 months at least and ideally a year to make sure you catch everything. Then post it in here and we can take a look and suggest whee you might need to tweak things, if that helps.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00
Balance as at 31/12/23 = £112,000.00SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
Hi there and welcome to MSE,
EssexHebridean's has give some good suggestions above about making a budget more sustainable. Bank accounts/ statements will show more accurately what you are spending to plan for the future. You could also try keeping a spending diary or only dealing in cash for a month and see what works for you.
Your budget is a crucial part of any debt solution. You will be unable to uphold any negotiations without it (whether it is done through you or a free DMP) and you would even struggle with a Debt Relief Order (DRO).
For now, it may be worth sending a hold action sample letter to the debts to get 30days breathing space from them and making sure you do not bank with any of the banks your debt is owed to, until you get a SOA together that you are happy with.
Laura
@natdebtlineWe work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps0 -
Well done for having the lightbulb moment. You have to learn how to budget, I know it may feel difficult to start with, but once you get the hang of it, it will become the way of life.
I hope you keep us posted and all the best on your debt-free journey! 
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One way to start would be to write down in a diary everything (from newspapers to nights out) that you spend in a month, then look at where you could save money, e.g a coffee a day for 20 days = £50 or £600 a year
Failing that a SOA is another good place to start, see where people can suggest you could save money.0 -
Wow I wish at 23 I had my LBM! Post an SOA and we can help Savings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS0
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