New job may change everything

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asdesigned
asdesigned Posts: 21 Forumite
in Debt-free wannabe
So I've been in debt for probably 25 years, never being able to get on top of things. Previous relationships have pushed up credit cards, loans and car finance but now i'm one week away from a big pay rise with a new job. On paper my current wage would be seen as a comfortable with a £2800 take home pay but we have over £2300 (excluding groceries!) of outgoings a month (and that is paying things off slowly) so we are left with a lot less disposable income and always at zero or worse every month.
My wife isn't currently working and we have 2 kids.

So the question is with an extra £600 a month the new job will give us do we stay tight and chisel away at debts faster or enjoy the extra cash in the pocket for once?!

I'm inclined to tough it out and get the outgoings down faster, then really enjoy life when we are out the other side of the debt tunnel, my wife would like to enjoy the extra money a bit. Just interested to know what others would do!

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  • January2015
    January2015 Posts: 2,369 Forumite
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    No brainer - squirrel away an emergency fund so that you won't need to borrow if something goes wrong, eg. car or boiler, and then throw the extra cash at the debts. Once you have cleared the debts then you can enjoy the extra cash from not paying debts AND from the new job.
    DFW Nerd No. 1484 LBM 07/01/15 Debt was £95k :eek: Now debt free and happy :j
  • National_Debtline
    National_Debtline Posts: 7,998 Organisation Representative
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    Hi there,


    In a situation like this, you need to start with a SOA and ideally post it so other people can see your situation and debts in more detail (which will help offer solutions). When you do this, you should look at what money you have coming in (including any benefits, such as child benefit) and then deduct all expenses such as rent/ mortgage, council tax, fuel, water, TV Licence, phone, travel, food, clothes, haircuts etc. Don't leave off an essential expense just because it isn't a direct debit, and don't include any of the debt payments in your essential spending.


    You need to look at what money is genuinely spare for the debts. If there is enough for you to maintain the minimum payments and there is additional spare money, then it is up to you as a couple what you do with it. If you choose to overpay the debts, it would help to clear them quicker and so it may be a short term sacrifice for a long term gain. However, you may be able to compromise and pay something extra to the debts and enjoy some of the money. But, realistically, if you could post your SOA it would help future posters be more specific. Good luck,


    Laura
    @natdebtline
    We work as money advisers for National Debtline and have specific permission from MSE to post to try to help those in debt. Read more information on National Debtline in MSE's Debt Problems: What to do and where to get help guide. If you find you're struggling with debt and need further help try our online advice tool My Money Steps
  • kazwookie
    kazwookie Posts: 13,842 Forumite
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    Can you wife work part time / evening etc, If she was able to work and ear as well you would clear the debts down.

    Get rid of debts, then enjoy what is left after saving up for an emergency fund.
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