Sorting out this massive mess
Comments
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I can identify with this. I'm also your age with 1 child and like you my husband and I did holidays, eating out, holidays etc on credit. It's so socially acceptable and we were trying to live the lifestyle we were used to at home, forgetting it probably took 30 years for our parents to get there! I'd recommend 2 things. Do a written budget every month - live within your means and don't borrow any more. Then secondly watch the debt free screams on dave ramsey. It's on youtube. I'm personally a fan of his method but even if you don't follow it, it's so motivational seeing how ordinary people have paid off huge debts.
Your income is ok so you have means to tackle this. be organized and make a plan.0 -
£250 per month on entertainment seems a lot to me. Can't you have look for something to do that is free?0
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Hi
I don't have time to write a massive reply, but wanted to say what you're doing looks good. We were in a similar situation and after 8 years have finally dug out way out of it. We also ending up doing a voluntary repossession on our home as we couldn't sell it, then got lumped with the debt of the shortfall balance.
I think if you stay on this forum and keep reading you'll find loads of support and useful information. We very much buried our heads in the sand and just kept plugging away at whatever we could afford, sometimes when things were bad it was only £10 a month but it was a gesture to show we were trying.
We are now on the final lap with some small debts and are going self managed. We also just bought a house with a mortgage from a high street lender on a great deal. They looked past our historical issues and could see we were reliable and owning our issues.
We also have two kids and they are expensive even when your frugal.
You can do this !0 -
zippygeorgeandben wrote: »You know I'm excited for you, I genuinely am. I think you and your DH should start a diary.
My advice would be like other people and do not rely on the 17k. Some people suggest building a 3-6 months emergency fund so you are totally prepared for any emergency which comes along due to not being able to work.
A monthly income of £4,800 multiplied by three is £14,400 so you should think of that £17k as your emergency fund. That's what I think anyway.
Also, if I may say, I really admire your frankness, honesty and 100% responsibility.
Regarding the 50k, in the words of Elsa in Frozen just 'Let it go'. People never let go in things in life (this was a drunken conversation in the pub I had on Saturday!) and it just takes over you, causes friction, makes you become bitter etc.. so let it go!
I look forward to reading with interest. Good luck.
Thanks for your reply.
I think that honesty is the only way that this is going to work. We have sent years with our financial heads in the sand, so for me it's about taking responsibility and accepting that our situation is NOT NORMAL!! For years I have kidded myself that everyone is in debt, and that we are no different to others, but the reality is that whilst lots of people may be in debt, very few will owe in excess of 60k!!0 -
Hi
I don't have time to write a massive reply, but wanted to say what you're doing looks good. We were in a similar situation and after 8 years have finally dug out way out of it. We also ending up doing a voluntary repossession on our home as we couldn't sell it, then got lumped with the debt of the shortfall balance.
I think if you stay on this forum and keep reading you'll find loads of support and useful information. We very much buried our heads in the sand and just kept plugging away at whatever we could afford, sometimes when things were bad it was only £10 a month but it was a gesture to show we were trying.
We are now on the final lap with some small debts and are going self managed. We also just bought a house with a mortgage from a high street lender on a great deal. They looked past our historical issues and could see we were reliable and owning our issues.
We also have two kids and they are expensive even when your frugal.
You can do this !
Hi, thanks for replying. I am pleased to hear that you have managed to sort things out it gives me hope that we can do this too.0 -
Fireflyaway wrote: »I can identify with this. I'm also your age with 1 child and like you my husband and I did holidays, eating out, holidays etc on credit. It's so socially acceptable and we were trying to live the lifestyle we were used to at home, forgetting it probably took 30 years for our parents to get there! I'd recommend 2 things. Do a written budget every month - live within your means and don't borrow any more. Then secondly watch the debt free screams on dave ramsey. It's on youtube. I'm personally a fan of his method but even if you don't follow it, it's so motivational seeing how ordinary people have paid off huge debts.
Your income is ok so you have means to tackle this. be organized and make a plan.
Thanks Firefly, I will def check out Dave Ramsey,
So much of our debt is due to chasing a lifestyle that was just out of grasp. £50 here, another £100 there etc etc over the course of 15 = 64k!!0 -
£250 per month on entertainment seems a lot to me. Can't you have look for something to do that is free?
Yes, to be honest, I wasn't really sure what to put for entertainment as this differs massively month to month. The £250 was a somewhat arbitrary figure. I will tweak this and change it to a more realistic figure over the next couple of months.0 -
If you carry on with this mindset of 'what have i got to show for all this debt? i.e. not much then you'll definitely approach this with the perfect mindset.
As long as you are both on board! I'm 38 and I had my LBM when just turned 37. I'm loving seeing my debt going down and when I'm working all the hours god sends I'm always thinking, it's another day closer to becoming debt free
Savings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS0 -
Is there any way you can transfer some of the high interest debits to a 0% card? I know it might be obvious but as long as you're making the minimum payments tackle the debt in order of biggest interest and get that snowball effect going.
It is a lot of debt but you're in a good position as you have a good household income and you've made the first and most important step - realising there's an issue and getting a plan to solve it.
With regards to groceries, as other posters have mentioned it is quite high. I don't know what you do but simple things like cooking from fresh and avoiding pre-prepared meals and ingredients can help cut costs, as can meal planning (so you don't buy too much) and batch cooking.
Good luck Little One born 19/12/18
5/5/18 I became Mrs Pie
FTB June '17 - £144k mortgage, £134k remaining0 -
Hello!
Just wanted to chime in and say good luck - it looks absolutely doable, plus debt-busting is far more addictive than spending once you have the mindset in place Debt-free August 21, Mortgage-neutral April 240
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