Feeling a bit hopeless & in need of advice

Anon_12345

Thank you I really appreciate that, I just need an idea on where to start I think, I am happy to do whatever it takes to start clearing things I just have no idea where to actually start 

comeandgo

One of the things you have to do is examine why you have this debt.  Is it due to just years of slightly overspending and consolidation or is there a gambling addiction or some other issue?  Do you have items you can sell?  I put items I no longer need on Facebook local pages and get a few pounds and a tidier house.

Jude57

An accurate SOA is your starting point. Then, it can be tweaked to ensure it's sustainable - no point cutting everything to the bone as you'd be unlikely to be able or willing to stick to it. Look at every category on the SOA template and ask yourself  'do I really never pay for parking? Haircuts? Petrol? Replacing clothes? Children's clothes and shoes?' And so on. For things you pay for once a year, start setting money aside each month - you could start today with a Christmas fund.

It's a hard slog getting to grips with everything so take your time and ask all the questions you need to. Someone here will be able to answer and it only seems 'easier' for those who have already done what you're starting to do.

Oh, and welcome to MSE Debt Free Wannabes😀

fatbelly

If there is money available over and above the minimum payments, then it needs to go to Next and Very (and please don't use them again!) - it's only £1400 but that is incurring high interest.

You have actually done well on the other debts and it looks like you are still able to access 0% deals.

There's no quick fix here but once you have an accurate soa, are budgeting, and know how much you have available each month, then snowballing is the way forward

https://www.lemonfool.co.uk/financecalculators/snowball-calculator.php

Anon_12345

This is really helpful thank you, the guide to snowballing is really useful, I am going to take a good look at that and focus on getting those store accounts cleared & closed down.

enthusiasticsaver

I agree that targeting the store cards like Next and Very is the first step as those are usually expensive.  Surely if you put in £800 to cover the mortgage and gas/elec etc you do not need to include the utilities in your soa?  Just to clarify.  Out of your salary you pay £800 to the joint account to cover the mortgage and bills and the rest of your salary covers debt repayments, groceries and other spends?  In which case you have quite a lot of additional income which should be spare and I guess that is not the case.  A spending diary to record where your money is going should be a first step.  How did the debt occur in the first place? 

enthusiasticsaver

When does that mobile contract finish?  £90 is horrendous.  Also if a lot of that debt is to cover clothing costs for the children then surely that is also down to your partner? 

fudgecat

Welcome and well done for tackling those debts head on. Snowballing  reduces the highest interest debts first, but sometimes the psychological effect of clearing a debt completely can be a major boost. So, those store cards should go first!
It is really hard to complete an SOA accurately at first. With children, there are always lots of small incidental expenses, and birthdays and Christmas must be significant!
It might be worth a joint SOA, so you have an accurate identification of the entire family budget.
Does your partner know about the debts?

Naomim

I agree knowing how the debt built up is a good start.

All the debt on my signature is in my name but it's joint debt as it built up from holidays, clothes shopping,  bits for the house and kids and of course those sneaky consolidations trying to get out of debt.  Do not take the brunt of it alone if it is actually shared debt.

My husband didn't know the extent of it until I joined MSE but we pool our resources and it's coming down. 

Good luck!

Naomim 

Anon_12345

The majority of the debt was from our home purchase, the solicitor costs and fees were put onto a card as we didn't have the cash available for it, also a family holiday was put on a card - no gambling etc. More when we have had unplanned costs come up - new boiler in January and some car repairs the credit card was used.

I will do an updated SOA looking through my last couple of bank statements, I have been working from home since covid but will be back to the office in October so will have additional travel costs then of around £200 per month so really need to get my finances in order ahead of that.

Partner is aware of the debt yes.