New Leaf for 2026 - Dire Debts

linux_Master

Hm, what is that saying? 'New Year, New Me?'. I need to change that to 'New Year, Better Finances'! 

Hi everyone! 

I am 29 and in a stinking amount of debt which I need to pay off. I am hoping this is a forum to keep myself accountable and if anyone has any thoughts or advice, they would greatly be appreciated! 

My parents have always been in a cycle of borrowing, never clear of debt and always paying off things they brought many moons ago; I have regrettably followed suit in my financial pursuits and now I am in a position where I feel grossly overwhelmed, stressed and having sleepless night's over my current position. It is causing me to worry about my future massively and the stress just is not worth it! I know I want to change and I want to make a difference to my future, but I need somewhere to vent and expel my stored up anxieties in a place where others may understand so I hope this is received well. 

My current state of affairs is below. Please critique it to the end if you wish, I will be as open as possible but if I have missed anything please call it out. 

Monthly Payments:

Essential Bills and Spending:

Item	Amount
Mortgage	£‎ 682.26
Council Tax	£‎ 129.00
Energy	£‎ 100.00
Broadband	£‎ 47.91
Car Insurance	£‎ 41.59
Water	£‎ 30.00
Pet Plan	£‎ 17.00
Car Tax	£‎ 16.62
Home Insurance	£‎ 14.86
Prescription	£‎ 11.45
Pet Insurance	£‎ 10.39
O2	£‎ 8.00

Total: £1,109.08



Debt:

Item	Amount
Monzo Flex	£‎ 243.89
Tesco Loan	£‎ 205.43
Lloyds Credit Card	£‎ 180.00
Santander (Loan 1)	£‎ 176.90
Car Finance	£‎ 174.96
Santander CC	£‎ 160.00
Santander (Loan 2)	£‎ 145.01
Curry’s Finance	£‎ 92.00
Tesco Credit Card	£‎ 60.00
Barclays - iPhone	£‎ 56.57
Monzo Loan	£‎ 43.52

Total: £1,538.28


Optional Spending:

Item	Amount
Gym	£‎ 45.00 (Work rebates up to £300 of this per year)
Netflix	£‎ 23.98
Car Service Plan	£‎ 19.44
Lottery	£‎ 12.25
VPN	£‎ 10.59
Window Cleaner	£‎ 10.00
Playstation	£‎ 6.99
Bin Cleaner	£‎ 6.33
Apple Music	£‎ 5.99
CCTV Sub	£‎ 5.49
iCloud	£‎ 2.99

Total: £149.05

Grand total of all core expenses per month: £2,796.41

On top of this of course, there are additional spends throughout the year, which I will categorise as monthly, rounded to the nearest £5 based on previous averages after looking through my bank statements:

Fuel: £20 
Groceries: £200
Christmas: £45
Birthdays: £50
Clothing: £10
Trips Away: £50
Eating Out: £50

Final Total: £3221.41

Based on that figure above, this is where I have my issues. My income sits at £55,000 PA Gross, my Net Monthly after pension, student loan and other deductibles is c. £3115. This is my base before any overtime, allowances or additional payments are added. I will work with this figure as this is the guaranteed sum. 

I have been given a pay rise to £62,000, however, this will not kick in until April (but will be backdated to November). 

The concern here of course is that my average monthly spend exceeds my core income, which is leading me to increased debts and a concerning financial situation. For clarity, here is a breakdown of my outstanding balances across all the aforementioned monthly payments in ascending order:

Curry's Finance: £1,374.22
Monzo Flex: £1,414.26
Monzo Loan: £1,826.11
Lloyd's Credit Card: £2,649.40 (Currently at Maximum Limit)
Santander Loan (1): £3,756.74
Santander Loan (2): £4,636.82
Santander Credit Card: £4,966.23 (Currently at Maximum Limit)
Tesco Credit Card: £5,678.12 (Currently at Maximum Limit)
Tesco Loan: £5,957.47
Car Finance: £7,173.36
Total: £39,432.73

Some of my loans I have had for some time and attempted to overpay here and there. The original balances of these loans and their respective interest rates were: 

Monzo Loan:
- Original Loan Amount: £7,150.00
- Total Repayable: £9,163.99
- Outstanding Balance: £1,783.51
- APR: 11.0%
- Monthly Payment: £43.52
- Note: I paid back a large chunk of this loan when I received a settlement following a car accident, hence the lower repayment. Originally this repayment was £153.
- Loan End Date: July 2029

Santander Loan (1):
- Original Loan Amount: £9,000.00
- Total Repayable: £10,614.00
- Outstanding Balance: £3,756.74
- APR: 6.8%
- Monthly Payment: £176.90
- Loan End Date: 11/2027

Santander Loan (2):
- Original Loan Amount: £6,000.00
- Total Repayable: £8,700.60
- Outstanding Balance: £4,636.82
- APR: 16.9%
- Monthly Payment: £145.01
- Loan End Date: 04/2029

Tesco Loan:
- Original Loan Amount: £10,000
- Total Repayable: £12,325.80
- Outstanding Balance: £5,957.47
- APR: 8.6%
- Monthly Payment: £205.43
- Loan End Date: 05/2028

Car Finance:
- Original Loan Amount: £6,139.27
- Total Repayable: £10,497.60
- Outstanding Balance: £7,173.36
- APR: 13.9%
- Monthly Payment: £174.96
- Loan End Date: 04/2029

So yeah, things are pretty *expletive* at the moment. I am understandably very stressed, but I have been weighing up my situation for a few months and I know deep down I am serious to get out of debt. 

All of the loans were taken out as five year deals, at the time it doesn't seem to long by goodness me it really is a long slog. I've kept up my repayments so far, but based on my current situation, if one thing goes wrong as things stand right now it will all come crashing down. I cannot hide this any longer.

My mortgage deal comes to an end in September 2027. I have considered an IVA and Debt Management Plans, these are not an option for me. In my line of work if I were to take on something like this not only would it ruin my future prospects with my mortgage and keeping a roof over my head, I would also most probably be fired and would then have no income to tackle this. So that cannot be done (I have checked with HR, this is the case). 

I also live alone, so I have no backup nor any family left that could help or support me if things were to crumble. 

I was also considering a debt consolidation loan, I was pre-approved for a £15,000 loan, which would free up about £400 monthly once some of these are cleared, but of course, that is just prolonging debt which is not the aim. I want to be debt free, not debt delayed. 

You will also notice my credit cards are pretty much maxed out, I will note that my limits were significantly higher than this, as were the balances, each month I chip away I also reduce my credit limit to stop it getting any higher. Yes, this may not be great for my credit score but at this stage that doesn't matter. I have understood the behaviour and I want to prevent any form of temptation as the main priority right now. 

My action plan I have been working towards is my Monzo Flex. All my fleet agreements (based on not paying any extra) will have completed by July 2026, which will free up £200+ per month; this is another reason I decided not to go for debt consolidation as if I focus on this I am already on the right path. 

I am trying to work towards the debt snowball method, even though my flex balance is large, it is made up of many smaller purchases. I have minimum payments on all of these except one or two a month and I am paying the full balance on these bit by bit, so it feels like big win. Curry's is the same, but I wanted to see more monthly income quicker and my Curry's payment is lower than Monzo so I have decided to start there. 

There's not too much more to say about me. I have sold everything I can to put towards overdrafts which have already been paid. It's now the long game. Starting with my optional spending mentioned below, I will start to cut this back.

Please do join me in this journey, any advice or support would be welcomed.

Thanks for reading.  

LM

bigbeff

Hi, 

To start with, I just want to offer my support - the fact you have put this together shows you are serious about it. You will get there (and hopefully get a nice little back payment in April when your wage goes up!) 

My first question. Optional spending - could you reduce any of this? Netflix, apple music etc. I only have a basic netflix account (I know it depends on needs) but could you reduce this and free up £15? Bin cleaner? Playstation? If you are serious, these are areas you could cut down on, even for a while? 

Could you join some of the challenges on here? I don't know how you spend, but I find that if I give myself a cash budget each week - I think much more carefully about how the coffee's I buy, the lunchs out etc. 

Is it just you or do you have children, partner etc? If you are on your own, do you have a room you could rent out?

Lots of people with good advice here - I will be watching and following. Good luck  

Brie

An excellent start!!  And well done for recognising both the problem and the source of the problem - that in itself can be very helpful when looking for solutions.  This is why I'm guessing that you have discarded the debt consolidation - a wise decision as it does just delay things.  

2 things immediately - normally we ask people to do the standard statement of accounts (see the link in my signature below) - that way we know what we're looking at and you can add extra notes at the side as required.  Secondly - many people start off on the debt free wannabe board - I can move this for you if you wish, you'll get more of the regular debt "advisors" commenting if things are there.  Ping me a message if you want me to move this.

Immediate questions -

• how much of the optional spending can you stop?
• no TV licence? (not always needed - just asking)
• any cards with a 0% balance transfer offer?

As for moral support - I think all of us here have been where you are, or worse - I certainly was and on a lower salary too!!!.  So ask us anything, message us if you have a question/comment that you don't want to put out in public, whatever helps us on your way.

linux_Master

Hi @bigbeff!

Thank you for your message, it is much appreciated! 

To answer your question on optional spending this can absolutely be reduced. Cutting down on Netflix, PS Plus and the bin cleaner will save me a chunk as it is. I know it's only small amounts but in this every single penny needs to count. 

Luckily they're relatively easy to cancel. 

Oh thank you for the suggestion on the challenges! I will take a look around. I am still new so just finding my way around the forum at the moment so I will see what there is and if there is anything I can sink my teeth into!

It is just me, I live in a very small 1 bed 1 box house, the box room I am currently using as my office as I work form home full time. Might be a bit of a squeeze but a room to rent is a great idea if there are any takers. I'll do some digging on the forums and see how other people have approached this too.  

Thank you for your message!

linux_Master

Hey @Brie

Thank you for messaging, I really appreciate the support!

I know none of us want to be in this situation and everyone is different, but knowing I am not on my own is a big thing in itself. So far it's just been me and my mind going over everything constantly. At least I can be honest and hopefully help motivate some others on the way too.  

To answer your question RE TV license. I don't think I need one. I do check the website as I have to declare I don't need one each year, but I don't have sky or virgin etc. I only watch Netflix (no live TV) and YouTube (not live either). I didn't even install BBC iPlayer or ITVX etc on my playstation where I watch TV just in case I got a spot check as I know they do those sometimes. I didn't want to risk it. 

For the optional spending I think I can certainly cut back a fair bit. Even just temporarily freeing up every penny I can has got to help, so where I can I am going to cut these back. Just wanted to lay my cards on the table to start with at least to see where I am at. It was a little scary when I got it all written down! 

All the cards have passed their 0% periods unfortunately. I tried credit club and it does say I can get a balance transfer card with Barclaycard, but I won't know the limit until I apply. My only worry was opening a new line of credit and having another payment to juggle (even if it cuts down an existing one). Do you think it might be worthwhile doing it anyways?

And I am sorry, I thought I did post this in the Debt Free Wannabe board! My apologies! If you're able to move it for me that would be amazing!

I can do my statement of affairs with that link you have in the meantime and I will post it below. Thank you very much!

linux_Master

[font=courier new][b]Statement of Affairs and Personal Balance Sheet[/b][b]

Household Information[/b]

Number of adults in household........... 1

Number of children in household......... 

Number of cars owned.................... 1[b]

Monthly Income Details[/b]

Monthly income after tax................ 3115

Partners monthly income after tax....... 0

Benefits................................ 0

Other income............................ 0[b]

Total monthly income.................... 3115[/b][b]

Monthly Expense Details[/b]

Mortgage................................ 682.2

Secured/HP loan repayments.............. 174.89999999999998

Rent.................................... 0

Management charge (leasehold property).. 0

Council tax............................. 129

Electricity............................. 65

Gas..................................... 35

Oil..................................... 0

Water rates............................. 30

Telephone (land line)................... 0

Mobile phone............................ 8

TV Licence.............................. 0

Satellite/Cable TV...................... 0

Internet Services....................... 47.91

Groceries etc. ......................... 200

Clothing................................ 10

Petrol/diesel........................... 20

Road tax................................ 16.62

Car Insurance........................... 41.59

Car maintenance (including MOT)......... 19.44

Car parking............................. 0

Other travel............................ 0

Childcare/nursery....................... 0

Other child related expenses............ 0

Medical (prescriptions, dentist etc).... 11.45

Pet insurance/vet bills................. 27.39

Buildings insurance..................... 9.5

Contents insurance...................... 5.36

Life assurance ......................... 0

Other insurance......................... 0

Presents (birthday, christmas etc)...... 95

Haircuts................................ 18

Entertainment........................... 50

Holiday................................. 50

Emergency fund.......................... 0

iCloud.................................. 2.99

CCTV Subscription....................... 5.49

Apple Music............................. 5.99

Bin Cleaner............................. 6.33

Playstation............................. 6.99

Window Cleaner.......................... 10

Lottery................................. 12.25

Netflix................................. 23.98

Gym..................................... 45[b]

Total monthly expenses.................. 1865.38[/b]

[b]

Assets[/b]

Cash.................................... 0

House value (Gross)..................... 152000

Shares and bonds........................ 0

Car(s).................................. 0

Other assets............................ 0[b]

Total Assets............................ 152000[/b]

[b]

Secured & HP Debts[/b]

Description....................Debt......Monthly...APR

Mortgage...................... 142653...(682.2)....4.25

Hire Purchase (HP) debt ...... 7173.36..(174.9)....13.9[b]

Total secured & HP debts...... 149826.3.-.........-   [/b]

[b]Unsecured Debts[/b]

Description....................Debt......Monthly...APR

Curry's Finance................1374.22...91.16.....34.9

Monzo Flex.....................1414.26...243.9.....29

Monzo Loan.....................1826.11...43.52.....11

Tesco Loan.....................5957.47...205.4.....8.6

Tesco Credit Card..............5678.12...65.81.....24.9

Santander Credit Card..........4966.23...130.3.....19

Santander Loan (2).............4636.82...145.......16.9

Santander Loan (1).............3756.74...176.9.....6.8

Lloyds Credit Card.............2649.4....145.1.....28.6[b]

Total unsecured debts..........32259.37..1247.09...-  [/b]

[b]

Monthly Budget Summary[/b]

Total monthly income.................... 3,115

Expenses (including HP & secured debts). 1,865.38

Available for debt repayments........... 1,249.62

Monthly UNsecured debt repayments....... 1,247.09[b]

Amount left after debt repayments....... 2.53[/b]

[b]Personal Balance Sheet Summary[/b]

Total assets (things you own)........... 152,000

Total HP & Secured debt................. -149,826.36

Total Unsecured debt.................... -32,259.37[b]

Net Assets.............................. -30,085.73[/b]

[i]Created using the SOA calculator at www.LemonFool.co.uk.

Reproduced on Moneysavingexpert with permission, using other browser.[/i][/font]

linux_Master

deleted post....

linux_Master

Oh sugar. I think I posted my SoA twice incorrectly... sorry about that.

Still new to this and I am not sure how to delete posts yet! 

Brie

no worries!!  we got you!!!!

linux_Master

Thank you! I was frantically trying to find an edit button! 

Thanks for sorting that! I think I have done my SoA correctly there, the numbers are a little different but I followed the SoA to include my minimums as it asks rather than what I am actually paying. My plan following the debt snowball is to move all that I can to minimums and focus on one debt at a time. 

The SoA also gave me cause to look through my Tesco Bank Credit card statement to find the APR. I thought my 0% period had ended but £5,000 is still on my introductory period. I need to check my paperwork but I am very sure this will be coming to an end soon, so I will expect that this monthly payment will increase soon. 

I need to brace for that and confirm the date so I can try to accommodate it, if it happens soon!

Brie

OK so let's say you can get rid of about £100 of the optional payments.  Go to a lower Netflix one, get rid of the bin cleaning, whatever.  

Is the Curry Finance a Creation account?  In which case as that's the highest interest rate you should target that to snowball the debt down.  If there's a good reason you can't overpay on that then go for the Monzo Flex or the Lloyds CC as next highest interest. 

Consider reducing the credit limit on anything you don't need as that might open up the possibility of getting a 0% balance transfer on one of the cards at some point.

When you get your pay rise get yourself a treat for good behaviour but use the rest (obviously!!) to pay down more.  Don't forget you'll lose a chunk to tax so have a look at what you might do by putting a bit more into your work pension too.  My best guess is that you might get a back payment of £4,200 ((62k - 55k) x 60/100) which would go a good way to clearing both the Lloyds and Tesco CCs.  That will give you a lot more breathing space.

Does that make sense??