A little scared but ready to make a change

RebeccaO26RebeccaO26 Forumite
18 Posts
10 Posts First Anniversary
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Hi all, 

So I guess I'm not too sure where to start.  I'm 26 years old and I am about to start a Debt Management Plan.  My finances have gotten so out of control that, for the last 3 weeks I've felt very much like I am spinning out.  I am just finishing up a Master's programme at university and, when my student loan stops, I'm left with only £17 a month after my bills are paid.  I am lucky I guess, I saw this coming before it hit and I've managed to amass a small emergency fund already, simply because I anticipated that this was potentially going to happen.  I've spent the last 3 or 4 months googling debt help, debt advice, what happens if you can't pay you bills and various other versions of this same google search.  I won't lie to you all, I'm deeply ashamed of myself.  I got a first for my undergraduate degree, I was accepted into several universities for my masters programme and now, I'm looking at graduating with very few prospects.  

The amount I owe is fairly small compared to some of the posts I've seen on here, in total, at this point, I owe about £11,800.  This will most definitely increase when my DMP starts and the more I research my list of creditors, the more I panic about how much interest and late charges they'll add on.  I've found that this panic has led to me being unable to really do my job properly.  My boss told me on Friday that he has noticed that, as my panic increases, my ability to forward plan drops.  I think this is because, when I look at my future, I see nothing.  I'm 26 years old, a graduate without a grad job and I am still living at home with my mother and my dog.  I mean, I love my mum.  She's one of my best friends and, right now, living at home doesn't bother me too much.  I just envision that, one day, I'm probably going to meet someone.  One day, someone is going to want to be with me and I'm going to want to be with them.  I worry that living at home will be an obstacle and now, given my current situation, I don't see a way out of the family home.  

StepChange have quoted my 7 years and 1 month to get out of debt given the current amount that I owe which I anticipate will rise to roughly 8 years once everything is in place and my creditors finally default my accounts.  I will be 34 when this is over.  I will be living at home and I will have no savings unless my circumstances change significantly over the next year or so. 

I currently have a part time job that I really enjoy.  My boss and I get on really well and I really like what I'm doing but the nature of the role means that there are very few opportunities for overtime.  I am hopeful that I will find a second job within the next few months to help me build my emergency fund so that I can offer full and final settlements to my creditors before the 8 year mark and gain enough experience in my current role so that I can hopefully get a promotion in the next couple of years.  

I feel like I just need to stop feeling so anxious about everything, I cannot predict the future and I'm not doing myself any favours by thinking so much into the future and not dealing with the here and now but I'm just really struggling to work out how to find the hope I need to move forward.  

Replies

  • FootyFanDanFootyFanDan Forumite
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    Hi and welcome :)

    Well done on taking the 1st steps, its always a really scaring / daunting feeling when you first put your toes into the water of trying to sort out debt. I would say here you will get plenty of amazing support and advice, the main thing you need to do from reading ur post is to figure out a plan you are comfortable with (in regards to amounts and dates you want to try sort by) this will give you clear pathway to walk down which hopefully relieve a fair bit of the stress you are feeling and putting yourself under. This is possible to fix with a plan.

    Good luck :) 
  • RebeccaO26RebeccaO26 Forumite
    18 Posts
    10 Posts First Anniversary
    Forumite
    Hi and welcome :)

    Well done on taking the 1st steps, its always a really scaring / daunting feeling when you first put your toes into the water of trying to sort out debt. I would say here you will get plenty of amazing support and advice, the main thing you need to do from reading ur post is to figure out a plan you are comfortable with (in regards to amounts and dates you want to try sort by) this will give you clear pathway to walk down which hopefully relieve a fair bit of the stress you are feeling and putting yourself under. This is possible to fix with a plan.

    Good luck :) 
    Hi :) 

    Thank you.  I feel like its just so terrifying right now.  I'm managing to get my thoughts back in order and I've been on a number of the forums, reading all of the advice and interacting with people who know a lot more than I do.  

    You are right - I do need to get a plan that works for me - I think the length of time is really overwhelming for me.  I have this tendency to get caught up in worse case scenarios and that's what's happened here.  I am actively looking for a second job so I can reduce the time I need to be on the DMP for.  I've done all the maths, if I was to get 12 hours a week on min wage I could reduce the time from 7-8 years to around 3 or less with full and final payments - its just the uncertainty of not having the second job in place and of trying to find something.  I think I just need to be comfortable with the ambiguity of the situation and accept that there is a plan in place that will take approximately 7-8 years at the moment and get my perspective back.  Anything could happen in that time and I need to try and remain optimistic.  

    Thank you for wishing me luck!  
  • FootyFanDanFootyFanDan Forumite
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    1,000 Posts Third Anniversary Name Dropper
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    The way I have always looked at my own situation is that it took me a long time to get into the mess through a combination of overspending with no clear budget and just buying what I want when I want to and without a thought for any costs that would crop up through the year. With this in mind I knew it wasn’t a quick fix but was determined to get debt free.

    I set out what I needed to get up to date first and worked a budget around that, I knew from my figures that if I could stick to the plan in 3 months all that would be up to date and then I could then re-work my budget for my next goals. Its about trying to find a middle ground.

     At the moment its difficult for you as you are thinking of the long term payments, once you have a solid knowledge of what you are spending and where you can then work out what you can possibly cut down on.  The one thing I would say though is through this forum you will find 100s of ppl that have been in similar or bigger amount of debt and still got debt free so it can be done 😊


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