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£20,000 in the hole :o

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  • kazwookie
    kazwookie Posts: 14,254 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Which overheads are very high?

    Can these be cut back / get better deals on?

    Can you take on regular paid part time work to supplement your business?
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  • Fudgefund
    Fudgefund Posts: 394 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    I love your user name.:D Word on consolidation loans - fine in theory but you need to be sure your subsequent outgoings would be within your means to both live and make your repayments. I'm not sure what the statistics are but I'm sure a lot of people who take consolidation loans end up in more debt as they see nice clear credit cards and start building them up again (I'm guilty of this in the past).
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  • savingholmes
    savingholmes Posts: 28,937 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    The statistics are against consolidation loans - as most people re-spend and go worse. Having been down that route -it was certainly true in my case .Not worth doing unless you are really capable of turning your back on debt as a solution forever and commit to that.
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  • A_A_Mole
    A_A_Mole Posts: 33 Forumite
    The statistics are against consolidation loans - as most people re-spend and go worse. Having been down that route -it was certainly true in my case .Not worth doing unless you are really capable of turning your back on debt as a solution forever and commit to that.

    I've failed in the past!

    I'm earning more now, though, so in theory it should be OK.

    I would cancel all my cards if I did get a loan.
    kazwookie wrote: »
    Which overheads are very high?

    Can these be cut back / get better deals on?

    Can you take on regular paid part time work to supplement your business?

    Rent is the main one, which I can't reduce.

    And debt repayments and household bills.

    Plus kids clubs, school lunches, school uniforms, kids clothes...

    Thankfully I don't drink any more or eat out or socialize at all so I don't have to pay for all that stuff any more!
    beanielou wrote: »
    Worth a try but only off you cut down all existing lines of credit.
    Could you do that?
    Are you already a member of the credit union?

    I'm going to join this week and see how it goes.

    I hope I could stop using debt. I haven't taken any more on for a while and I'm earning more than I was when I created the debt.
  • A_A_Mole
    A_A_Mole Posts: 33 Forumite
    Fudgefund wrote: »
    I love your user name.:D
    ...
    people who take consolidation loans end up in more debt as they see nice clear credit cards and start building them up again (I'm guilty of this in the past).

    Thanks, just been listening to the later books on audio books. So good!

    Yes, I've done that in the past, older and wiser now. Hopefully...
  • A_A_Mole
    A_A_Mole Posts: 33 Forumite
    kazwookie wrote: »
    Can you take on regular paid part time work to supplement your business?
    Do you have any options to increase your income? Is self employment the only option, or could you consider looking for employment of some kind

    I've looked into doing night shifts at the local supermarket but the pay is terrible.

    It would be about an extra £50 a shift, for messing up my sleep cycle and making my life even more miserable.

    I can earn about £20 to £30 per hour from my self-employed work. Sometimes much more.

    But I have limited time in the day to work (while the kids are at school) and am too lazy/tired to work in the evenings once they are asleep.

    If I could force myself to do one extra hour a night, I could potentially get an extra £400 a month, before tax.

    Which would help with the debts.

    But if I work in the evening, the screen time messes with my sleep.

    Plus I find it hard not to watch TV with the Mrs, when she is watching it, after a day of working.

    I used to get up at 6AM and do an extra hour of work before the day started, but my kids get up at about 5 AM now, so I wouldn't have anywhere quiet to work.

    But I need to be more disciplined.

    As you can see, I have lots of excuses not to work!
  • Karonher
    Karonher Posts: 957 Forumite
    Part of the Furniture 500 Posts
    Some credit unions will expect you to be a saver with them before you can get a loan - I am not sure for how long or how much you would need to save.
    Aiming to make £7,500 online in 2022
  • mark55man
    mark55man Posts: 8,201 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Hi AA-just popping in to join in - I love a good dairy!!

    A word from someone been in this game for a long while (so don't necessarily take my advice as I've been down lots of blind alleys)
    • There are lots of forum's on here about saving money and spending less, and you should read around them and find what works for you. a lot of things start slow, and then as you get into the habit you find you are £50 a month better off, and then another £20 for something different, and when you add it all up you find you have more to spare and you don't miss the things you spent it on
    • However, that said, if you find yourself spending 3 hours to make £3.20 on ebay when you could have made £60 by working, you have to ask yourself if you are prioritising, and need to make some decisions - can your laziness be overcome for an hour an week (or couple of hours at the weekend) if your OH takes the kids out
    • Finally, as a long term serially comfortable person, I feel like you've had a Light Bulb moment, (well done), but you are not 100% out of denial. Without focus this debt will shrink slowly (given you better income), but then it will lurch backwards and you will spend another year catching up. You don't need to give everything up, but you need a real change
    • I'm not sure the extent to which you and your OH have discussed this, it is a joint thing, and you can't do it properly without really doing it together - can she work more, its not just your problem even if you feel more responsible
    • Finally - kids!! - mine range from 20-25, and only gradually are they becoming less in need of support. When they are young (and I guess they are if the 5am strikes!!) they really don't need as much as you think to keep them happy
    so work out how much do you really want to bash that debt, and choose the most aggressive plan that is sustainable - expect it to be more boring but you don't have to be miserable. And when you are debt free then keep things tight and don't revert to old habits - its a permanent change not a temporary restraint on your lifetime
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  • A_A_Mole
    A_A_Mole Posts: 33 Forumite
    Thanks Mark!

    Yes, it's always a juggle between saving time vs saving money.

    I could get the bus to Lidl or Aldi, but then I would waste time I could be working.

    But then I can't work all hours of the day, so during the evenings, my time isn't really worth £20 to £30 an hour, as 1) I am easily distracted and then unlikely to work if there is something on TV and 2) I work much slower in the evening as I'm tired, so my rate could go down to £10 per hour.

    I get paid by how much I do, not how long I sit at the computer.

    I've just signed up with a co-working space as I was really struggling to get work done at home over the summer holidays.

    I have 24/7 access so am working today, Bank Holiday Monday, and am thinking of doing 1 or 2 evening sessions a week, such as 7 to 11 twice a week. That could get me an extra £100 a week if I was strict with it.

    Yes, I'm still in denial! But trying to get better but find it hard to say no to the kids and mrs when they suggest something fun to do.

    Don't say that about the kids! I was thinking about 16 would be the cut off age when they would be less financially demanding, but maybe not?!?!?!

    I need to get my head out of the sand, and get my head down and do the work that's available to me, to pay off the debt!
  • Good Luck A A Mole, you've come to the right place, as Mark said the forums on here have so much helpful advice and tips, once you start making little changes you should start to see some traction.
    Wobbling my way out of debt one month at a time

    Credit Card £0/£3,161 0% interest PAID IN FULL 29/01/2021
    Loan £0/£23,179 5.4% PAID IN FULL 31/08/2020
    Total £0/£26,340 100%
    DEBT FREE AS OF 29/01/2021

    wobbling-my-way-out-of-debt

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