Wow wee oh my - trying to hack away at my £54k debt (was even about to book a holiday) 21 October 2020 at 11:36AM in Debt free diaries 184 replies 18.1K views

Rainbowtrousers

Edited - thanks so much to enthusiasticsaver for your message. Reposting this as had to amend username and some info.  
Hello and thanks in advance for any help you are available to offer .... 
Wow where to start?! I am almost embarrassed to share my story but I am a 40 year old lawyer (so bankruptcy and other debt consolidation options unlikely to be applicable) who has never budgeted and has been living far beyond his means for many years.
Currently - loan to high street bank (£25,000), 2 credit cards which total £11,000 (both 0% until September 2021), parents (£10,000) and car finance (£8,000).
I do work and after bills I have about £750 per month left over. That includes minimum payment on the credit cards and full monthly payment on the loan (£650 per month due to expire in four years i think). I can return the car in march 2022 (monthly payment is £125 per month) and not have to pay the £8,000. 
I am just curious how i go about tackling the other debts that are due. A second job? 
Do feel slightly embarrassed by this but hoping someone here can offer help.
Would love love love to be debt free and have savings (for the first time ever!)
I have two spare rooms but hate having housemates (even though that could generate circa £850 per room per month)
I have a weekly cleaner and some other pretty silly outgoings
As i type this the above just sounds a little loco - good to get some help ....
I still have my sense of humour which is good 

efes_shareholder

As much as you hate it , I'd be inclined to see if I could make the housemate rule work for me 
Even if only for a year , 2 x rooms @ 850 PCM equates to 20400 over the course of a year so even if you only did it for that time it would make a massive dent in your debt
Not sure of the tax implications though ,that may decrease your yeild.
I'd be inclined to take that route , and maybe treat myself to the odd special offer night in a travellodge or prem inn when I really needed my own space
I've also seen some adverts where rooms are mon - fri only 

Rainbowtrousers

Yes that really is a great idea thanks very much. I guess i just need to be more flexible with things and whereas before i had no targets or goals this time around it may be more tolerable if i know they are helping me to live a debt free life. Tax wise i think the first 7500 is tax free and then i would research what to do about the rest. Thanks again. 

RelievedSheff

Make a list of your monthly incomings and outgoings and see where you can make savings.

The cleaner for a start can go. Get the cleaning products out yourself. No one is too busy to clean!!

couriervanman

"I have a weekly cleaner and some other pretty silly outgoings"..........list all your pretty silly outgoings and what they cost a week, you might be surprised. You suddenly realise that daily spend on coffee/sandwiches and other pointless stuff adds up to quite a lot.......couple of takeaway coffees and a sandwich £12 x 5 days £240 a month

Rainbowtrousers

Thanks both.
I have been overspending for the last 20 years and have always been in debt since i was 18. 
Do you give much time to why the problem started or just accept it?
In a weird way i think this journey will end with me appreciating the thing i do more and knowing how an enjoyable in budget holiday feels for the first time
 

penners324

Strip out the silly outgoings. That'll free up a few hundred probably.
Then use all spare cash to pay down the loan first.

Rainbowtrousers

Thanks Penners. My thinking was to try to clear the credit cards before sept 2021 (when 0% expires`). The loan however is 6.9% and 668 per month due to expire may 2024 (gulp)

One-step-at-a-time

Welcome! I reckon with a few adjustments you can go quite hardcore on shifting the cards and loan without feeling the pain too greatly. Have you completed a SOA to figure out (honestly and realistically) where the money is going? Re: your question about thinking about how the problem started - I've been paying mine off for getting on for four years (nitty gritty in first post of diary in my signature) and have had plenty of time to think about all the whys and hows - I have action plans and budgets coming out of my ears now
You will find loads of people on here happy to chip in with ideas and suggestions!

vixx_123

Try filling the stoozing SOA calculator out (quick Google). It may help you spot where you're spending. Then if willing, you could share here for others to help you spot other areas to cut spending

Rainbowtrousers

One-step-at-a-time said:

Welcome! I reckon with a few adjustments you can go quite hardcore on shifting the cards and loan without feeling the pain too greatly. Have you completed a SOA to figure out (honestly and realistically) where the money is going? Re: your question about thinking about how the problem started - I've been paying mine off for getting on for four years (nitty gritty in first post of diary in my signature) and have had plenty of time to think about all the whys and hows - I have action plans and budgets coming out of my ears now
You will find loads of people on here happy to chip in with ideas and suggestions!

Thanks yes i will do that. How do you add to your signature please? Can i say a huge well done that really is incredible and inspiring to see how much you have paid off. Was there one thing that made a difference? My issue has been very expensive holidays that i have now cut out completely.