Where should I start???

shelly_22

This is just so hard. I feel sick with worry. We (me and my hubby) are drowning in debt. We have a mortgage and three children. We both work. I work part time. It started as our future. We bought a house...needed work doing to it etc.. We started borrowing a bit here and there. Then a bit more and more and more. Now we are in such a mess we are having to borrow from one to pay the other. Even our food shopping is going on credit. I dread the post arriving.. I know that it has to stop NOW!! I don't want to lose our house. I feel so guilty and feel that we have let our children down. There is no turning the clock back though, and we have got to get on with sorting it out. I don't know where to start or who I should be asking for help. I don't care if my credit rating is non existant and I can never get credit again. I just want to start being able to afford to live and pay my debts off without having some kind of breakdown. If anyone has advice on where to start I would be very gratefull. Thankyou.

angelavdavis

Martin has some tips here so I advise you read the article first.

MSE is here to support everyone through their debt issues so well done for posting.

A couple of things you should do definitely as of now are:
1) Dig out all the paperwork, make a cup of tea and sit down with OH to list out your income in full, including child benefit, etc and your outgoings (all of them). Plus add your debts, interest rates, minimum payments, length of any loans left, etc (phone your loan/cc company for the rates if you don't know them).
2) Start keeping a spending diary so you can track every penny being spent - it will highlight where your money is going on "unknowns"
3) Either post up your SOA on here (statement of affairs - incomings and outgoings as described in 1)) or if you don't feel strong enough to tackle it without support, phone for an appointment with CCCS or Payplan and take the information along with you. They will put together a debt management plan with you and assist in approaching your creditors.
4) Look at areas to start cutting back:

• the Money Saving Old Style forum for ideas to cut back on food costs,
• keep lights switched off in rooms not in use,
• unplug devices not being used - avoid standby,
• phone the Council and Water board and change your council tax/water rates to over 12 months to lessen the payments.
• Cancel magazine subscriptions, sky or anything that you can seriously live without

5) Look at areas to start making more money:

• Ask for a payrise (its amazing how many people can get one just by asking)
• If not, look for another job that pays better
• Rent out a spare room
• Look over the house for anything you can sell to raise extra funds to throw at debts.
• Join quidco and switch energy providers, insurance providers using them for cashback
• Phone your existing credit card companies and ask for a % decrease - if you don't ask, you don't get. Provided you have been maintaining payments, you may be lucky.
• Consider downsizing to clear debts if necessary (although weigh up the costs of moving, etc).

Keep posting on here to help maintain your morale - people on here are really supportive.

calleyw

Firstly take a deep breath and then grab a cup of tea and some nice choccie biscuits. Then grab all paperwork such as bank/credit card statements etc.

When you work out how much you owe and the interest rates and monthly payments do a SOA see here http://forums.moneysavingexpert.com/showthread.html?t=107280

It is a listing of all income and out goings. Once you have done that and feel brave enough then post it here for us to take a look at. And everyone will take a look and suggest where you can make cut backs.

All the best.


Yours


Calley