In 26k debt, is a career change right now worth happiness over being miserable? 35M

Jules1047

As the title suggests, I am currently in 26k debt, it was just shy of 40k post divorce 3 years ago but have managed to reduce it back to the current amount within just under 2 years.

My situation isn't the best in terms of where I want to be. I'm a military veteran and have struggled with my mental health since leaving 6 years ago, lost my marriage and was diagnosed with PTSD last year - I am also waiting to be assessed for ADHD. 

I do struggle with making decisions in the best interest of myself sometimes when it comes to budgeting and what is the best in terms of financial but also generally for myself.

I have been offered a higher apprenticeship in an area I REALLY want to work in, but the trouble is it will mean going from 38k per year to 24k for the next 3 years until I finish the apprenticeship. The salary at the end of that will be roughly what I'm on now, but the result will be hopefully better as I currently HATE my job and that coupled in with my current mental state isn't helping me. 

I have a young child who I share with my ex wife, we co-parent reasonably well and I give all my time to him when I can. Would this be a poor financial decision or will this be the best for me in terms of future planning? I am paying my debts which includes one loan of 24k and one credit card of 2k. 

Loan interest - 6.9% (It was a consolidation loan)

CC interest - 0% until August 2026

I currently live with my parents and have been here the last two years. I get on reasonably well with them, help out where I can and support them as they grow older. I really want my independence again, but now I'm in two minds as to whether this move will just be a further delay that I don't want or whether the long-term results will outweigh the present negatives?

Thanks

moneytorques

OP I feel your pain as a fellow divorcee., but as you have a child, you need to be the best version of you for your child too.
I also had a Job that I wasn't enjoying and managed to get out and into a job thats made me the happiest Ive been in my career, I could earn more elsewhere but likely without the flexibility and camaraderie I have at my current employer.

Id say you have something to look forward to, completing your apprenticeship, but only you can judge on losing out of 42k over the next 3 years is viable.  
Have you prepared a budget based on the 24k salary and actually looked at how that would work for you?

RAS

Have you looked at the rules around affordability claims? The consolidation loan might be a candidate? Check out debtcamel.

Jules1047

moneytorques said:

OP I feel your pain as a fellow divorcee., but as you have a child, you need to be the best version of you for your child too.
I also had a Job that I wasn't enjoying and managed to get out and into a job thats made me the happiest Ive been in my career, I could earn more elsewhere but likely without the flexibility and camaraderie I have at my current employer.

Id say you have something to look forward to, completing your apprenticeship, but only you can judge on losing out of 42k over the next 3 years is viable.  
Have you prepared a budget based on the 24k salary and actually looked at how that would work for you?

Thank you for your reply. 
Yes, roughly just over 500 per month for my current circumstances which takes into account all of my bills but doesn't include anything in terms of saving, as I forgot to mention I have 0 emergency savings unfortunately.

Jules1047

RAS said:

Have you looked at the rules around affordability claims? The consolidation loan might be a candidate? Check out debtcamel.

I haven't, no?
This loan was taken out at the start of the year whilst earning 38k per annum

tacpot12

As per moneytorques'' advice, I think you have to look to see if you can still make some progress on clearing your debts if you take the apprenticeship.

Staying with your parents might feel like a backward step, but it actually the best thing you can do to increase the amount you can contribute to paying off your debts, especially if you take a lower paid job. 

Are you getting treatment following the PTSD diagnosis? Is there any chance that the apprenticeship might be postponed/put on hold for a year?

Also how old are you, as this might factor into the advice? 

fatbelly

Being stuck in a job that you hate must be horrible. I've always enjoyed mine but whether by luck or planning I'm not sure

As you are ex-forces have you had a chat to RBL to see what they can do to help? They used to be very good and had debt specialists who would spend a lot of time with their clients

It looks like they still do

https://www.britishlegion.org.uk/get-support/how-we-help/financial-support/benefits-debt-money-advice-service

Non-priority debts are not very important in the grand scheme of things and you shouldn't let them dominate your thinking

sourcrates

I second the advice to check out the British Legion.

They helped my ex-wife who had significant debts a few years back, she is ex Royal Navy, they managed to get a good portion of the debt written off for her, there are also grants for various things as well.

kimwp

Will you have the opportunity again? 

Jules1047

tacpot12 said:

As per moneytorques'' advice, I think you have to look to see if you can still make some progress on clearing your debts if you take the apprenticeship.

Staying with your parents might feel like a backward step, but it actually the best thing you can do to increase the amount you can contribute to paying off your debts, especially if you take a lower paid job. 

Are you getting treatment following the PTSD diagnosis? Is there any chance that the apprenticeship might be postponed/put on hold for a year?

Also how old are you, as this might factor into the advice? 

I managed to work out i will be paying roughly 600 per month after interest has been taken into account, so it won't be an overnight pay off so to speak.

I've thought about DMP and IVA which seemed to be pushed by Payplan when I enquired with them about my situation, but that have an effect on me for years to come, especially when we are talking housing, even for renting purposes.

Yes, finished 21 sessions of therapy May of this year and due to have more in 1 to 2 months.

I'm 35

itsthelittlethings

I’d take the apprenticeship if you can afford it and you think it is the right path for you.