Best way to pay off £20,000 debt

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monkeyman602
monkeyman602 Posts: 4 Newbie
in Loans
Best way to pay off £20,000 debt
Can anyone advise me how is the best way to pay off my debt. I’ve avoided checking how much I owe for ages and so it’s built up to a ridiculous amount.
I have 4 credit cards on 0% interest, 1 with interest, a store card, catalogue debt and a £3,000 overdraft. I am sick of messing about swapping credit cards to get 0% interest and every time I need to buy something I’m getting further in debt.
Would I be better getting a loan and paying it all off and avoiding credit cards altogether? I’m determined to get rid of it one way or another. I know there’ll be interest on a loan but I think I’d feel more in control.

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  • Debtnomoreplease
    Debtnomoreplease Posts: 215 Forumite
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    Morning,
    First of all, well done for acknowledging you have a debt problem-sometimes the hardest thing to do! This means you've had enough of having had enough-always a good mindset to be in to get rid of debt.

    Secondly, as much as it will pain you, you must check to the penny on what you owe on all of your accounts. You need a clear figure to start tackling it. It may be better, worse than you thought, but got to be done.

    Thirdly, if you have debts on 0% leave them for now. Are you constantly in your overdraft? If so, this needs to go ASAP! I never knew until I joined this site, but your bank can reclaim that overdraft at any time. What does it cost you per month?

    You need to do a SOA (statement of affairs) to get a clear picture where your money is going, what you owe and what you have left every month etc.

    It will all feel scary at the moment, but once you get a clear plan of how you're going to tackle it you will feel nothing, but relief!

    There will be more people with much better advice than me along soon.

    One thing I can promise is, this site it nothing but supportive, encouraging and great to get your daily thoughts down.

    I wish you tons of luck on your debt free journey-smash it penny by penny! :-)
  • Debtnomoreplease
    Debtnomoreplease Posts: 215 Forumite
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    Also, getting a loan to repay debt very rarely works and is advised against on this site.

    Knuckle down, budget, earn more, spend less is the best way to get debt free.

    Good Luck
  • Debtnomoreplease
    Debtnomoreplease Posts: 215 Forumite
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    Also, getting a loan to repay debt very rarely works and is advised against on this site.

    Knuckle down, budget, earn more, spend less is the best way to get debt free.

    Good Luck
  • sourcrates
    sourcrates Posts: 28,878 Ambassador
    First Anniversary Name Dropper First Post Photogenic
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    monkeyman602 wrote: »
    Best way to pay off £20,000 debt
    Can anyone advise me how is the best way to pay off my debt. I’ve avoided checking how much I owe for ages and so it’s built up to a ridiculous amount.
    I have 4 credit cards on 0% interest, 1 with interest, a store card, catalogue debt and a £3,000 overdraft. I am sick of messing about swapping credit cards to get 0% interest and every time I need to buy something I’m getting further in debt.
    Would I be better getting a loan and paying it all off and avoiding credit cards altogether? I’m determined to get rid of it one way or another. I know there’ll be interest on a loan but I think I’d feel more in control.


    How long is a piece of string ?


    Thats essentially what your asking us.


    We wont know any answers until you complete a statement of affairs for us to look at, you can find the calculator here :


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


    When finished, format for MSE when it asks you, then post in the debt free wannabe forum, which can be found here :


    https://forums.moneysavingexpert.com/newthread.php?do=newthread&f=76
    I’m a Forum Ambassador and I support the Forum Team on the Debt free wannabe, Credit file and ratings, and Bankruptcy and living with it boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.For free non-judgemental debt advice, contact either Stepchange, National Debtline, or CitizensAdviceBureaux.Link to SOA Calculator- https://www.stoozing.com/soa.php The "provit letter" is here-https://forums.moneysavingexpert.com/discussion/2607247/letter-when-you-know-nothing-about-about-the-debt-aka-prove-it-letter
  • System
    System Posts: 178,093 Community Admin
    Photogenic Name Dropper First Post
    edited 17 February 2019 at 5:47PM
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    monkeyman602 wrote: »
    I am sick of messing about swapping credit cards to get 0% interest and every time I need to buy something I’m getting further in debt.
    Well the simple answer to that is don't buy stuff you don't have the money to pay for. I doubt very much that what you're buying on the credit cards is something you cannot survive without as the only things you really need to spend cash on are food, heat/light, rent/mortgage, council tax, water and clothing and maybe travel to work if it is too far to walk or cycle. Everything else is completely and utterly optional and even the clothing is optional if you've already a wardrobe full of perfectly serviceable clothing.
    Would I be better getting a loan and paying it all off and avoiding credit cards altogether?
    No and in fact it would make matters worse and you'll just end up where you are with the credit cards again because you've still not addressed the main problem that is the source of all your woes and that is your inability to live within your means. Until your total spending falls to the levels of what you earn so you're no longer putting purchases on credit then you'll just continue to get deeper into debt.
  • DCFC79
    DCFC79 Posts: 40,598 Forumite
    Name Dropper First Anniversary First Post
    edited 17 February 2019 at 6:09PM
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    monkeyman602 wrote: »
    Best way to pay off £20,000 debt
    Can anyone advise me how is the best way to pay off my debt. I’ve avoided checking how much I owe for ages and so it’s built up to a ridiculous amount.
    I have 4 credit cards on 0% interest, 1 with interest, a store card, catalogue debt and a £3,000 overdraft. I am sick of messing about swapping credit cards to get 0% interest and every time I need to buy something I’m getting further in debt.
    Would I be better getting a loan and paying it all off and avoiding credit cards altogether? I’m determined to get rid of it one way or another. I know there’ll be interest on a loan but I think I’d feel more in control.


    Are the things you buy really needed ?
    Stop buying things that put your further into debt.

    Its possible a loan isn't achieveable based on what you have posted.

    Look at your spending and cut back.
    Stop the impulse purchases, only buy whats needed.
  • somethingcorporate
    somethingcorporate Posts: 9,449 Forumite
    edited 19 February 2019 at 6:57PM
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    Getting an interest bearing loan is not a great idea given a large chunk of your existing debt is at 0%. Use the SOA & snowball calc to prioritise your debts and get them paid off in the most effective order.
    Thinking critically since 1996....
  • foxy-stoat
    foxy-stoat Posts: 6,879 Forumite
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    Over pay the debt would be the answer - not shift it around, that rarely works.
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