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Start with step one - Keep £1000 in your emergency fund and start paying your unsecured debts smallest to largest off with the £3.5k you have left. List your current debts so we can take a look.lbcm1891 said:Hello. I'm a bit rubbish with money to be honest. Earn an ok income (42k) and have a small savings (4.5k- kept for car breakdown etc). I rent. I have 10k in unsecured debts costing me around 400 a month in repayments. I have a PCP car but this is essential (249 a month). I'm overdrawn every month. Not by a huge amount but it's getting to me, quite down about it. I can cut back on trivial stuff but I don't do anything fun anymore. I don't go out, isolated from friends because I can't afford to go out and do anything. I go to work and come home. So I am trying to face up to it finally. I'm thinking of getting a.loan to.pay off the unsecured debts, it'll bring the interest down and consolidate everything. I'll be cancelling a gym membership. To cancelling sky etc. Any advice grateful
Do not take out a consolidation loan !!!Baby Step 6/7 . £16000 saved and invested. £47,000 deposit paid on new home DEBT FREE !!!
Currently Negotiating with HMRC !1 -
I will get on to listing everything asap. Just out of curiosity what is the downside of the loan?0
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A consolidation loan can lull you into a false sense of security and you start building up debts again so you end up with the loan plus new debts. Many people on here have gone down that route and they will all tell you it was an expensive mistake.If you go down to the woods today you better not go alone.2
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That's what I was thinking. I suppose it's about self discipline and if I could do that I would not be in this position. Using my small savings would be heartbreaking though.0
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Fill out the soa and post asap, I doubt your situation is as bad as you feel it is and could be resolved
Positives are you have some savings and earn a good salaryMFW 2025 #50: £1139.75/£600007/03/25: Mortgage: £67,000.00
12/06/25: Mortgage: £65,000.00
18/01/25: Mortgage: £68,500.14
27/12/24: Mortgage: £69,278.38
27/12/24: Debt: £0 🥳😁
27/12/24: Savings: £12,000
07/03/25: Savings: £16,5001 -
I will probably have time tomorrow evening. After burying my head in the sand for so long it's terrifying to actually look at it all.0
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Far better to be terrified than keep burying your head in the sand and things get much worseMFW 2025 #50: £1139.75/£600007/03/25: Mortgage: £67,000.00
12/06/25: Mortgage: £65,000.00
18/01/25: Mortgage: £68,500.14
27/12/24: Mortgage: £69,278.38
27/12/24: Debt: £0 🥳😁
27/12/24: Savings: £12,000
07/03/25: Savings: £16,5002
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