Help - A liitle lost
Lapua65
Posts: 5 Forumite
Hi everyone.
I have had mental health issues that go hand in hand with my debts. My situation currently is that I am starting to mount higher cc balances from 0 in October 2015 to about £12k today. I have nothing to show for it, but every month I am using a bit more credit to get by.
I want to stop doing this (sounds pathetic, I am sorry) but I need a structured plan. There is so much information on here, but not sure where to start. I am currently earning, in theory enough to cover my current payments, but only if I stop behaving the way I do. I have been in and out of debt for 25 years and have managed to be debt free so many times, but just keep getting back on the carousel.
I feel totally ridiculous porting this, but I do desperately want to stop myself from being so out of control with money.
I have had mental health issues that go hand in hand with my debts. My situation currently is that I am starting to mount higher cc balances from 0 in October 2015 to about £12k today. I have nothing to show for it, but every month I am using a bit more credit to get by.
I want to stop doing this (sounds pathetic, I am sorry) but I need a structured plan. There is so much information on here, but not sure where to start. I am currently earning, in theory enough to cover my current payments, but only if I stop behaving the way I do. I have been in and out of debt for 25 years and have managed to be debt free so many times, but just keep getting back on the carousel.
I feel totally ridiculous porting this, but I do desperately want to stop myself from being so out of control with money.
0
Comments
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I think you really need to sit down and do a budget of everything you spend per month and try and cut out unnecessary things so curtail your spending. When you have it all down on paper it makes you realise how much you are spending on stuff you don't want / need. It'll be hard for a few years, but worth it and will help with any anxieties you have to know that you are debt free.
You can contact your credit card providers and explain the situation, they will probably disable your cards (but my first piece of advice would be to cut the cards up anyway) however, they may also freeze any interest and help you make an affordable repayment plan.
You can talk to a charity like Step Change who will be able to help you.
It'll be hard (it's like losing weight, it's easy to put on but hard to get rid of), so just get help (well done for doing that by posting here) stick with it and good luck.0 -
Thank you very much. I intend to do the budget today and expect to find that I am flitting money away on thing not needed at a worrying rate.0
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Try using this, formatting for mse and posting the results. Then we can make constructive comments.
http://www.stoozing.com/calculator/soa.php0 -
Try using this, formatting for mse and posting the results. Then we can make constructive comments.
http://www.stoozing.com/calculator/soa.php
And be honest with yourself about how much money you spend on stuff like a Costa Coffee or a Greggs or a chocolate bar from the local shop. Think about what you've done over the past week and what you've spent your money on. It is usually those "it's only a couple of quid, it doesn't matter" purchases that really add up rather than big ticket spending. Just a mere £3 a day on a Latte at Costa or a sandwich at Greggs put on that card would account for around £2900-£3000 of the balance of your card once you've included interest at a typical 14.9%.0 -
Don't feel ridiculous at all. You've recognised an issue and want to deal with it. You just need to make sure that you look at each post on your thread constructively and not emotionally. Everyone here will help you, support you, advise you. You realise you need to address it. Obviously you need to sort out your mental health issues but most people here will want to address the actual £££££s and how they can help you get on track.
Every time you log onto MSE, try and have your financial head on!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 -
Not sure if this formatted correctly.
On a quick overview, this is where we are. It doesn't show the impulse spending, but I had a look on my paypal account and as much as I would like to say they were necessary expenses, they are not. I built up £800 between Amazon and Ebay. Typing this I suppose the answer is in that last sentence.
Statement of Affairs & Personal Balance Sheet
Summary
Monthly Budget Summary
Amount(£)
Total monthly income
4,800
Monthly expenses (incl. HP & secured loans)
3,817
Available for debt repayments
983
UNsecured debt repayments
654
Amount left after debt repayments
329
Personal Balance Sheet Summary
Amount(£)
Total Assets (things you own)
412,000
Total Secured & HP Debt
-195,000
Total Unsecured Debt
-40,000
Net Assets
177,000
Household Information
Number of adults in household
2
Number of children in household
2
Number of cars owned
3
Income, Expense, Debt & Asset Details
Income
Amount(£)
Monthly income after tax
3000
Partners monthly income
1800
Benefits
0
Other income
0
Total monthly income
4800
Expenses
Amount(£)
Mortgage
1547
Secured/HP loan payments
0
Rent
0
Management charge (leasehold property)
0
Council tax
147
Electricity
103
Gas
0
Oil
0
Water Rates
49
Telephone (land line)
51
Mobile phone
122
TV Licence
11
Satellite/Cable TV
83
Internet services
0
Groceries etc.
625
Clothing
0
Petrol/diesel
250
Road tax
24
Car Insurance
150
Car maintenance (including MOT)
25
Car Parking
0
Other travel
0
Childcare/nursery
0
Other child related expenses
50
Medical (prescriptions, dentists, opticians etc.)
120
Pet Insurance/Vet bills
50
Buildings Insurance
30
Contents Insurance
30
Life Assurance
80
Other Insurance
0
Presents (birthday, christmas etc.)
50
Haircuts
20
Entertainment
100
Holiday
100
Emergency Fund
0
Total monthly expenses
3817
Secured & HP Debt Description
Debt(£)
Monthly(£)
APR(%)
Mortgage
195000
(1547)
0
Secured & HP Debt totals
195000
-
-
Unsecured Debt Description
Debt(£)
Monthly(£)
APR(%)
Car
25000
434
4.4
Credit Cards
6000
120
0
Credit Cards
9000
100
NaN
Unsecured Debt totals
40000
654
-
Asset Description
Value (£)
Cash
1000
House Value (Gross)
380000
Shares and bonds
3000
Car(s)
28000
Other assets (e.g. endowments, jewellery etc)
0
Total Assets
4120000 -
People will come along and offer you better, more in-depth / informative answers but in the meantime you could look at what you are spending and see if you can get it cheaper
ie : Cutting Sky Movies (or whatever), shop around for cheaper energy / Phone / 0% Credit cards etc.
Look at what you are spending money on and see if you can get a better deal by switching to a new supplier/provider ... just something to think about while someone comes back who actually know what they're talking about (I do not )0 -
A couple of quick points jump out for me
Mobile phones that's 100 more than we pay
Groceries I don't think we would spend 200 a month
That's just a couple of suggestions you could look at, however you will get a lot more advice from others on here. Don't be afraid to keep coming back for help and advice
Good luckNo.79 save £12k in 2020. Total end May £11610
Annual target £240000 -
Not sure if this formatted correctly.
On a quick overview, this is where we are. It doesn't show the impulse spending, but I had a look on my paypal account and as much as I would like to say they were necessary expenses, they are not. I built up £800 between Amazon and Ebay. Typing this I suppose the answer is in that last sentence.
Statement of Affairs & Personal Balance Sheet
Summary
Monthly Budget Summary
Amount(£)
Total monthly income
4,800
Monthly expenses (incl. HP & secured loans)
3,817
Available for debt repayments
983
UNsecured debt repayments
654
Amount left after debt repayments
329
Personal Balance Sheet Summary
Amount(£)
Total Assets (things you own)
412,000
Total Secured & HP Debt
-195,000
Total Unsecured Debt
-40,000
Net Assets
177,000
Household Information
Number of adults in household
2
Number of children in household
2
Number of cars owned
3 just wondering why 3 cars, can you sell one?
Income, Expense, Debt & Asset Details
Income
Amount(£)
Monthly income after tax
3000
Partners monthly income
1800
Benefits
0
Other income
0
Total monthly income
4800
Expenses
Amount(£)
Mortgage
1547
Secured/HP loan payments
0
Rent
0
Management charge (leasehold property)
0
Council tax
147 spread this over 12 months if not already done so
Electricity
103
Gas
0
Oil
0
Water Rates
49
Telephone (land line)
51this is HUGE for landline, even with BB
Mobile phone
122 again very expensive, cut to SIM only,
don't worry about latest handsets etc
TV Licence
11this is actually £12.12
Satellite/Cable TV
83 cut out totally if not in contract
Internet services
0
Groceries etc.
625 a lot for a family of 4
Clothing
0 never with 2 kids?
Petrol/diesel
250
Road tax
24for 3 cars?
Car Insurance
150 very expensive
Car maintenance (including MOT)
25 is this accurate for 3 cars, unless all under 3 years seems small
Car Parking
0
Other travel
0
Childcare/nursery
0
Other child related expenses
50
Medical (prescriptions, dentists, opticians etc.)
120 what is this for ? £10.40 per mth for pre-paid prescription?
Pet Insurance/Vet bills
50
Buildings Insurance
30shop about £60 for 2 insurances is a lot
Contents Insurance
30
Life Assurance
80
Other Insurance
0
Presents (birthday, christmas etc.)
50
Haircuts
20
Entertainment
100 this is a lot too if you're struggling
Holiday
100
Emergency Fund
0
Total monthly expenses
3817
Secured & HP Debt Description
Debt(£)
Monthly(£)
APR(%)
Mortgage
195000
(1547)
0
Secured & HP Debt totals
195000
-
-
Unsecured Debt Description
Debt(£)
Monthly(£)
APR(%)
Car
25000
434
4.4
Credit Cards
6000
120
0
Credit Cards
9000
100
NaN
Unsecured Debt totals
40000
654
-
Asset Description
Value (£)
Cash
1000
House Value (Gross)
380000
Shares and bonds
3000
Car(s)
28000
Other assets (e.g. endowments, jewellery etc)
0
Total Assets
412000
Hi, please see my comments in red - I think there are plenty of things you can cut down on - free up a few hundred pounds a month to throw at the debts.
my main query is why 3 cars?
Good luck0 -
The 3 cars is the absolute "stick out like a sore thumb" amongst all that. Particularly when you have £25000 of outstanding finance relating to your cars. Would 100% look to sell one of them.0
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