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40K of debt across CC’s and a loan - feel helpless

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  • Bertles
    Bertles Posts: 31 Forumite
    Fifth Anniversary 10 Posts
    Sorry I can't help regarding your debt, however I just wanted to let you know that Spark energy went bust last year. Your new supplier will be OVO.

    You might want to give them a call.
    :)
  • fatbelly
    fatbelly Posts: 22,970 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    It's do-able but a bit tight. I don't think you need to leap into a dmp or IVA at the moment.

    Halving your entertainment spend would help things.

    You do need to put something for clothes and do you really have zero travel costs?

    So, clear that secured debt in 3 months and start to overpay the Barclaycard. And ask your GP about your anxiety
  • Willing2Learn
    Willing2Learn Posts: 6,294 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    If it were me, I would seriously consider significantly reducing the monthly 'Entertainment' spending. Some of this money could go on to an Emergency Fund and the category for haircuts (if applicable). You could release some of this money to go toward snowballing those debts.


    I would consider a DMP as a viable option too as there is a shortfall in your budget.

    Are you able to take in a lodger or to increase your hours of employment/get a second job to increase income?
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • YKNA
    YKNA Posts: 25 Forumite
    10 Posts First Anniversary
    Mate I wish you the best of luck with this whatever happens there always someone to talk to. So keep fighting.
  • Dobbibill
    Dobbibill Posts: 4,192 Ambassador
    Part of the Furniture 1,000 Posts Mortgage-free Glee! Name Dropper
    Some really good comments here.

    Are your Council Tax payments over the standard 10 months or stretched over 12. If they are 10 monthly payments, ring the council and get them to change it over, this will reduce the monthly cost to free up some more funds. Along with a few other tweaks, you may free up enough to break even.
    I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

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  • fatbelly
    fatbelly Posts: 22,970 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Cashback Cashier
    edited 9 January 2019 at 1:11AM
    All good comments from W2L but there is only a temporary shortfall as you are paying off a £750 secured loan at £250 per month, and spending £200 on entertainment.

    Halve the entertainment spend and the present £120 shortfall turns into a £230 surplus in 3 months. An IVA is possible at that level and in theory gets you debt-free in 6 years. A dmp takes 14.5 years and snowballing would not take much longer than this as there is no bad credit history (yet) and 0% deals to be had.

    A lot can change over that timescale and I would not rush into an IVA (or a dmp) at the moment

    Edit: If you want to switch from OVO, then Bulb are worth considering at the moment and there are still some £100 referral links for the next 24 hours on this thread

    https://forums.moneysavingexpert.com/discussion/5747310/bulb-energy-referral-thread
  • Exodi
    Exodi Posts: 3,931 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Combo Breaker
    £70 a month on your mobile? Madness - it seems everyone on the DFW does this??

    I have an S5 (which I've owned for ~3 years), I buy a monthly £7.50 giffgaff goody bag, I earn around the same as you.

    Why oh why do people absolutely require the brandest newest shinest iPhone Y 2019 XL every single year? Most people solely use their phones to browse facebook....

    You'll want to make minimum payments on all cards and put as much money into your Barclay Card as possible.
    Know what you don't
  • Slowdown
    Slowdown Posts: 616 Forumite
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    Hi,


    Debts build up very easily for those such as yourself. I have assumed you are fairly young, you have a decent job with a good salary, in London.

    Some people might be dismissive of a person with good earnings and a seemingly great lifestyle but it creeps up on you. London is an excessively expensive place to live and work. You can't even get a coffee for less than a few quid. Rents/houses are extortionate and whilst you can argue that moving further out would be cheaper, you end up paying extra for transport which isn't cheap either.

    My daughter earns a good wage in London and lived in a rented flat for a year. Then she came home again because she simply couldn't afford to save anything. There is the added pressure from friends and colleagues to socialise and of course you want to do that to feel a part of things and live a little. Its understandable.



    So...what to do about it?


    You've had some amazing ideas from folks on here. It may all sound daunting but little by little you can make a difference.



    I'm pretty good at reducing my food bills. There are 4 adults in the house and I spent £54 last week. Absolutely no meat, some yellow stickered fish, basic cooking ingredients and a little imagination. You could try a vegetarian diet for a while. Using a few herbs and spices works well.
    You could ask mates round for supper (even with a small flat if you have one), ask them to bring a bottle and it won't bust your budget. Everytime you save a little, pop the money in a jar or knock it off a loan. Even a little bit helps. It is super easy to spend £50 on a night out in London, a bit too easy in fact.

    Another way to save money is to save the planet too. Once you look at the world through the eyes of a recycling, plastic free, vegetarian/vegan who wants a minimalist life with the smallest impact on the earth, you start to save money. No take away coffees, no single use plastics, no uneccesary purchases, second hand clothing, books, gadgets. it all mounts up. Today I found out how to make oatmilk, that costs me £1.40 to buy (including carton and associated emissions and recycling), cost me less than 10p for 750ml and lasts for 5 days. That will save us about a fiver every week.



    Do your friends/colleagues know you need to cut back? Often you find out others really want to do the same and it helps them too.



    I really hope you find some peace of mind with this. Stop for a while, get off the merry-go-round, take stock and begin your journey.



    I'm sure you know the saying, but just remember "It'll be alright in the end. And if it's not alright, it's not the end.


    Good luck
  • Hi

    Although I think that these answers can be helpful.

    The best idea for yourself would be to seek professional financial advice through an IVA company or a debt charity.

    Thanks
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