Struggling with debt / need help

carlsagen

I think I need to re-evaluate with her what money she can commit to paying it down. IIRC she had over 500 disposable. Which reading about an IVA they may well take more than what she's paying on minimum anyway.

The debt is going up so one way or another if that doesn't change she will end up in an IVA which is going to affect her for at least a decade.

Clive_Woody

Post a full SOA on the debt free board and people will be able to help advise on her outgoings and how to cut back.

Is she getting child support and all benefits that she entitled to?

carlsagen

Clive_Woody wrote: »

Post a full SOA on the debt free board and people will be able to help advise on her outgoings and how to cut back.

Is she getting child support and all benefits that she entitled to?

Thanks ill do that.

Yes, we thought about getting another job after work but shed probs loose the benefits so wasn't worth it.

yksi

carlsagen wrote: »

To be fair. She stopped spending before we met. its the paying down thats an issue.

That's not true that she has stopped spending, unless she gets all her bills and food for free

I don't think you heard what I meant - I wasn't saying she was spending on silly things. But she is spending too much comparative to what she earns. If she was not, and she had money left over at the end, she would have been clearing down the debt and would have kept receiving offers at 0%, provided she cancelled the card each time one was transferred/cleared. These offers stop when the available credit gets too high, as the person is considered overcommitted. She has gone from "ok" to "overcommitted" somewhere and the total owed is more of a factor than the actual repayments, unfortunately.

Like I said people think they've cut their spending in every way that they can, but it's rarely true. The full SOA will show "where" the money is going, but go even further and disssect the "essential" items in the list into exactly every item that is being bought. A proper bare-bones budget says "I've only got £50 for the groceries this week" and you don't spend over that just because you "need" something, you put something back on the shelf because you don't have the money. Painful, but necessary.

(Check whether she's got unused credit cards - cancel them - the other lenders will be taking that available credit into account even if it isn't being used.)

People want to help. 500 disposable income is actually quite a bit even if it seems to disappear instantly on people wanting money left, right and centre. There's hope, and she is lucky to have someone ready to help her. Get her selling anything she doesn't need (FB marketplace or eBay) and falling in love with charity shopping and borrowing items from friends. Every extra pound she can throw at the overdraft will make a difference. Good luck.

carlsagen

yksi wrote: »

That's not true that she has stopped spending, unless she gets all her bills and food for free

I don't think you heard what I meant - I wasn't saying she was spending on silly things. But she is spending too much comparative to what she earns. If she was not, and she had money left over at the end, she would have been clearing down the debt and would have kept receiving offers at 0%, provided she cancelled the card each time one was transferred/cleared. These offers stop when the available credit gets too high, as the person is considered overcommitted. She has gone from "ok" to "overcommitted" somewhere and the total owed is more of a factor than the actual repayments, unfortunately.

Like I said people think they've cut their spending in every way that they can, but it's rarely true. The full SOA will show "where" the money is going, but go even further and disssect the "essential" items in the list into exactly every item that is being bought. A proper bare-bones budget says "I've only got £50 for the groceries this week" and you don't spend over that just because you "need" something, you put something back on the shelf because you don't have the money. Painful, but necessary.

(Check whether she's got unused credit cards - cancel them - the other lenders will be taking that available credit into account even if it isn't being used.)

People want to help. 500 disposable income is actually quite a bit even if it seems to disappear instantly on people wanting money left, right and centre. There's hope, and she is lucky to have someone ready to help her. Get her selling anything she doesn't need (FB marketplace or eBay) and falling in love with charity shopping and borrowing items from friends. Every extra pound she can throw at the overdraft will make a difference. Good luck.

Thank-you very much. I will try tonight when I see her. See what happens.

zippygeorgeandben

Do you have four kids? Did I read that correctly?

foxy-stoat

carlsagen wrote: »

I think I need to re-evaluate with her what money she can commit to paying it down. IIRC she had over 500 disposable.

If she has £500 disposable then pay that into the cards...or did I miss something.