Close to 20K in debt what should I do

KanePaul

I've made a spreadsheet showing my debts on credit cards and loans please see attached screenshot, I seem to never have any money even though I work 45 hours a week, seeking help or advise please. I don't have any promotions on any credit cards to shift balances either.

MovingForwards

Fill out a statement of affairs
https://www.lemonfool.co.uk/financecalculators/soa.php
Format it for MSE, post it up and we can offer suggestions about dealing with the debt.

annetheman

Hi there! I've got debts of £18k-ish that I am powering through using the snowball method to pay the debts as quickly as possible and pay the lowest possible interest. I should be debt-free by December 2023 using the method! If you hadn't heard of it:

The "snowball method," simply put, means paying off the smallest of all your loans as quickly as possible. Once that debt is paid, you take the money you were putting toward that payment and roll it onto the next-smallest debt owed. Ideally, this process would continue until all accounts are paid off.

You will see in the Debt Free Diaries sub-forum, that many others are and have worked their way through the exact same thing as you and I.

It might be worth asking a mod to move your thread to there or starting a new one in there, once you get started. 

I would suggest:

1. Fill out LemonFool SOA, to help with assessing how much you are spending on what.
2. Have a look at your past few months' banks statement outgoings and spending and adjust in case you've spent £ on things you don't remember.
3. Consider what you can, realistically and sustainably, cut out of your expenditures (you can ask for people in the forums' opinions on this, you might not want to - up to you).
4. Calculate the amount you have left over after essential expenditures (to start the snowball).
5. Find out all of your interest rates for all your debts, and add them to the snowball calculator.
6. Add the amount left over (the overpayment snowball).
7. Copy your snowball plan into a spreadsheet, with dates for each payment.
8. Keep your payments on track, turn them green, and stay encouraged in the DFD forum!

This is just my opinion; I am no expert, on the journey myself! I assume at this point, you are looking for advice on working your way out of it; not lectures on how you got there and what you've done wrong. Great that you've started the journey, rather than stick your head in the sand. There's a whole community of us, and we are all getting there slowly but surely - hope to see you in the forum!