Best way to tackle debt

Clouds88

Hello,

Some background info that may help; 

bankruptcy in 2018, due to fall off of credit record in 2024.

between 2018- this year been managing fine, hardly any debt. Life hasn’t been kind (carer to husband who’s on esa/pip) and have 3 kids. we finally moved into a council house in January and that is where the costs escalated as needed white goods, oven, carpets, beds (4 beds previously only had 2!) coupled with me loosing my proper job as I couldn’t find a way to return to shift work with my baby and the others and we only have 1 car and school runs now 20 mins each way. 

ANYWAY-

current debt, a mix of PayPal credit, 6 credit cards,AO finance and a small pay day loan.

I applied for breathing space just to give myself 2 months break tbh. The interest combined each month is at least £120 

I don’t want to set up a DMP with stepchange (had to go through the forms to get the breathing space) but also found the monthly repayments too much, the reality hit when I had no money for some bills and had to use the payday loan.

so after breathing space what next? Do I post a SOA, do I try and pay the highest interest first? One is already on a arrange to pay (118) as the repayments we’re ridiculous. is there any negatives for just getting more defaults seeing as I’m in council accommodation and no chance of being a home owner for at least 5/6 years anyway.

my plan long term is to return to my career properly (currently on bank) but I’m at top band 6 nhs pay scale so should be ok financially in the future it’s just this year and next year I’ll prob be not working too much. Honestly after the bankruptcy I feel like such an idiot I swore I’d never get into a financial mess again but then we needed things for the house.

kimwp

Sounds like you are having a tough time. Probably best to post an SOA, showing what you are spending in the various categories (add any new categories if necessary) - link in my signature.