HUGE DEBT AND WHERE TO BEGIN
in Debt free diaries
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Hi ,This is my first time on here and starting by debt Journey following my lightbulb moment with a huge unsecured debt (45k) . I am currently paying all minimum payments on my unsecured debt but I have now come out of my promotional period on my credit cards and the interest now equates to around £225 a month . I have followed the forum for sometime but I realise now is time to take my head out of the sand and begin my Journey. My main question is do I begin by creating an emergency fund ? Do I contact the companies first or just default to build the Emergency Fund . I feel very alone and scared and have no idea where to begin ? Any advice would be greatly appreciated?
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Trying to live on only £2640 for the year for most meals for seven people.
Spent so far: £589.82/£2640
As you have kept up your payments there is possibility that you could get another promotional period of low or 0% interest on a new card. I would investigate that first. Consolidating isn't great but it is better than 225 a month on interest! I wonder if there is a personal loan that would offer a better interest rate?
I would work out all the debts you have, you can post a statement of affairs here but if that is a bit much then write them out just for you. For a sense of achievement and control I would pay off the smallest debt and then work what needs to be paid when.
An emergency fund is a good idea, when I started I cleaned a credit card and used that if things got desperate.
The key thing is to remember you can pay this off, you can do it.