£9,500 Debt... AGAIN!

Thisgal90

Ok, so around 10 years ago I went a bit mad on store cards and ended up in about £3000 debt I couldn’t pay back ( I was a student ) which I paid off with a debt manage plan through Gregory Pennington.

Now I’m 27 and after fully realising I have an issue with credit and spending I am now in hot water ( £9,500 )

Long story short I am getting help for the psychological spending problem but can I get a new DMP? I’m aware it affects my credit rating but I seriosuly cannot see any other way out. 😓...

sourcrates

Hi,

Welcome to the forums.

Yes of course you have another Debt management plan, but this time, choose to take advice from one of the free debt charities, who can arrange a free DMP, and not a debt management company such as GP who will charge you for the privilege.

Aside from that you need to tackle the reasons why you are in debt again, and it sounds as though your doing that.

I would suggest you contact stepchange with regard to the DMP.

enjoyyourshoes

You can probably work out what triggers your spending?

Also just basic things like keeping a running balance daily on your main bank account , not utilising CC (unless you accrue the costs on your daily reconciliation) and saving for luxuaries will help.

Identify you annual, half yearly and 1/4ly costs and account for these as a monthly charge (and save this to pay the bills when they occur) will help.

Don't fall into the trap of paying for insurances monthly as they will charge you interest and review all your bills (utilities etc) a month before they are renewed to get a better deal.

Take personal responsibility for your position and work out how to say NO in your head before you spend.

Its probably;y little daily things that just accumulate: as its £2.61 per day every day for 10 years that overspending generated £9600. So the big debt is a result of small things that are easily changed and its you that can do it.

enthusiasticsaver

You can have another DMP but as sourcrates says a free one is better so stepchange is your best option. A spending diary will help you see where your money is going. Also probably best for you to get rid of credit cards and store cards completely until you are more disciplined with your spending.