Advice needed please. Struggling with debt...

fayeb04 · 19 November 2018 at 11:28AM

Hello,

I have been struggling with debt for many years now and need some advice on the best ways to deal with it. The situation has been really affecting my mental health lately as I'm constantly stressed about it and worried and just feel like it's not normal compared to everyone I know as I feel like the only one struggling.

I currently have about £15000 worth of debt, £7500 of that is through a personal loan which I took out to simply consolidate debts from when I was younger and a student. I pay £180 per month for this over 3.5years still left. I also have a credit card of £5400 which is 0% balance transfer and my monthly payment is around £120 which is the minimum. I also have another separate credit card and the balance is currently sat at £1500, minimum payment about £45 per month currently. Apart from this I have my student loan which is about £80 per month and comes off my wage.

I am a homeowner l with my partner, and have the usual mortgage payments, household bills which we split 50/50 and i have personal bills such as mobile phone bill, car etc.

Altogether, my outgoings in bills including the loan and credit card debts are averaging about £1000 per month, and I earn approx £1600-£1700 each month, I have a steady full time job. Any remaining income I have is spent on food shopping, petrol etc and miscellaneous.

Im just finding it very difficult paying over £300 each month in loans and credit cards. I know in 3 tears time my loan would be finished and my credit card hopefully massively reduced by then, it just feels like such a long time away and each month I feel like I'm always struggling.

I just wish there was a way to reduce how much I pay out each month in debt as because it's so high I find I'm needing to use a credit card more to buy things I can't afford in the month which is a viscous cycle I know. I find I'm waking up thinking about it everyday day and I've even put on hold starting a family as I know right now we couldn't afford it. I just feel like life is on hold and 3 years seems so far away.

fatrab · 19 November 2018 at 12:14PM

Firstly, you are not alone. This forum is full of folk in similar and, very often, much worse situations than you. You didn't get into this debt overnight and you're not going to solve it overnight either. As you have found out, consolidating debt doesn't work.

You need to know exactly how much you spend. Then you need to stop the unnecessary spending, cut up the credit card that you keep using and learn to live within a budget.

Do an SOA (statement of affairs) - http://www.stoozing.com/calculator/soa.php and post it here so we can have a realistic picture of what you spend. And be completely honest.

Start a spending diary, either a notepad or get an app for your phone. You probably be shocked at how much you actually spend compared to what you think you do! It will make you stop and think before every single purchase!! Establish the difference between wants and needs.

Best wishes

Chandelier. · 19 November 2018 at 8:04PM

Hi,

Welcome to the boards. The road to debt freedom can be long and tedious, but the end is in sight for you.

What interest rate is the loan? Any chance you can overpay this as and when circumstances allow?

Just think in a few years time, once all is paid you'll have that money all for yourself should you not rack up any further debt.

Don't beat yourself up about it. Complete a realistic SOA and work out what you can afford to throw at it each month whilst still having some small luxuries for yourself.

It sounds manageable at the moment, so keep doing what you're doing. Plan, plan and plan some more. Set yourself a goal or target to reach and work towards it. Imagine what you could put the money towards, once you've paid off your debt.

Start a DFW diary and try to keep yourself on track where possible.

Some people find paying off smaller balances more beneficial, psychologically. Once one is paid down, you then focus on the others and snowball each debt.

There is a lot of great support on these boards.

Good luck!

Unicorn_cottage · 19 November 2018 at 10:03PM

It sounds from your details that if you put your mind to it and with a few sacrifices you could clear your debt a lot earlier. How you spoken to your partner about your situation? Do they have debts too?

fayeb04 · 20 November 2018 at 5:15PM

Sorry what is a DFW diary?

My partner has no debt, just his side of our home bills and his own personal bills like phone car etc. I would never ask him to help out as my debt is my own and I had it before I met him. Plus I do earn more than he does so after my debt each month our wage come out pretty much the same really.

I just didn't know whether to consolidate all of my debt to one big loan, but take it over like 6-7 years just so my payments are lower each month, then maybe after a few years when my wage has increased (I have annual increments) I could shorten the term? I don't really want a longer term of debt though, but I'm just trying to find a way of coping at the moment.

Thank you,

fatrab · 20 November 2018 at 5:27PM

When you consolidated your last debts, how did that work out? You ended up in the same situation again.

When you consolidate this time, what do you think is going to happen?

You need to break the cycle and learn to budget. Swallow your pride and speak to your partner.

There's a sub-forum called Debt Free Diaries, where there's thousands of threads with people in all sorts of situations who are working their way through it.

Myself included

Best wishes.

Vikipollard · 20 November 2018 at 7:16PM

fayeb04 wrote: »

Hello,

I have been struggling with debt for many years now and need some advice on the best ways to deal with it. The situation has been really affecting my mental health lately as I'm constantly stressed about it and worried and just feel like it's not normal compared to everyone I know as I feel like the only one struggling.

I currently have about £15000 worth of debt, £7500 of that is through a personal loan which I took out to simply consolidate debts from when I was younger and a student.

Im just finding it very difficult paying over £300 each month in loans and credit cards. I know in 3 tears time my loan would be finished and my credit card hopefully massively reduced by then, it just feels like such a long time away and each month I feel like I'm always struggling.

I just wish there was a way to reduce how much I pay out each month in debt as because it's so high I find I'm needing to use a credit card more to buy things I can't afford in the month which is a viscous cycle I know. I find I'm waking up thinking about it everyday day and I've even put on hold starting a family as I know right now we couldn't afford it. I just feel like life is on hold and 3 years seems so far away.

fayeb04 wrote: »

Sorry what is a DFW diary?

I just didn't know whether to consolidate all of my debt to one big loan, but take it over like 6-7 years just so my payments are lower each month, then maybe after a few years when my wage has increased (I have annual increments) I could shorten the term? I don't really want a longer term of debt though, but I'm just trying to find a way of coping at the moment.

Thank you,

Not going to sugar coat this. Look at the bits in red. You consolidated once, and did what most of us did and racked up more debt. Why would it be any different this time? Except the debt would be even bigger.

You also state that three years of your life being "on hold" whilst paying off your loan is getting you down. So why the hell would you want to extend that term to six or seven years?

Complete the Statement of affairs for you both, including OH's wages, and let the good people on here see where economies can be made to enable you to pay off your current debt more quickly.

Unicorn_cottage · 20 November 2018 at 10:06PM

You say you are putting having children on hold...I assume you have spoken to your partner about wanting to have children? Do they know you are delaying having children because of the debt? Please fill in the SOA...I think you can clear this debt quicker than you imagine with a bit of cost cutting like Viki says above

Unicorn_cottage · 20 November 2018 at 10:26PM

http://www.stoozing.com/calculator/soa.php

Advice needed please. Struggling with debt...

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