I am struggling

135

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  • Getoutofdebt
    Getoutofdebt Posts: 14 Forumite
    edited 14 August 2018 at 6:44PM
    Your SoA looks pretty good from here, although I'd query why you have nothing allocated for Christmas or birthday presents? Also, you state that your loan is at 0% - is that definitely correct?

    Is your council tax paid over ten months? If so, ask council to split it over 12 and that will help free up a bit more. You could possibly shave your grocery bill down a little - the old-style moneysaving board is a good place to look for inspiration. If you haven't already, try the MSE energy club to make sure you are on the cheapest gas/electricity deal.
    If you are really worried about money, the first thing I would cut is the holiday fund, as holidays should be considered a luxury in my opinion.

    In terms of tackling your debt, look at the snowball method. If you can get the small CC paid off, then you'll have one less payment going out that you can add towards paying off the next one until it's paid off etc.

    Good luck - there's lots of lovely people on here who are willing to offer advice and support!

    Council tax is paid over 12 months
    Holiday money is something we are committed to for the next 4 years.
    We are with cheapest energy co as I check that quite often
    Shopping is £40 a week as I have it delivered and the minimum is £40 without an extra fee
    The loan is definitely 0%. It has to be paid back completely in 18mths time
    We don't buy gifts for birthday or xmas
  • natlie
    natlie Posts: 1,687
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    edited 14 August 2018 at 6:56PM
    Hi

    I have to ask if you are being really honest here, with yourself

    if your budget looks like this then how would you have acquired this amount of debt?

    I worked on my budget for 3 weeks - finally realising that i had been spending £400-£700 over my budget each month and i had spent £40k in Savings and acquired £30k of debt - that was my lightbulb moment!

    You need to go through a couple of months of statements - all your credit card outgoings and find out where that money went - only then will you be able to sort this out

    I have one bank account where all my regular payments go out of and another account which is split into pots (Monzo) where I pay myself living costs for day to day - groceries petrol etc and savings for xmas etc

    If i dont have money for something I eBay

    I would advise another look at your SOA

    Nat
    DMP: £30,668 £3,364.02 DFD July 2024
  • macman
    macman Posts: 53,008
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    edited 14 August 2018 at 7:28PM
    If you are not working, how can you be spending £200 per month on fuel?
    How can you be committed to holidays for the next 4 years?
    You've got £281K of equity in the house, you could remortgage, or downsize and clear your debt.
    No free lunch, and no free laptop ;)
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,445
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    Do you know how the debt got so high? Your income shows you can just about cover expenses but I am guessing there is missing expenditure. Looking at your bank statements may help you see where you are overspending.

    On the plus side you have a relatively small mortgage and lots of equity. Don't be tempted to consolidate the debt, a mistake people often make when faced with high debt. I am afraid there is no quick way to getting out of debt. It is budgeting every penny and no more credit. I would cut the cards up or lock them away somewhere so you cannot be tempted to spend. Emotional spending is relatively common so if you are inclined to spend when you are very depressed moving to using cash only may help.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment 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.
  • macman wrote: »
    If you are not working, how can you be spending £200 per month on fuel?
    How can you be committed to holidays for the next 4 years?

    Most fuel costs are hubby's not mine. We are committed to holidays because we bought in to it back when I was working. Back when we were doing well with money
  • Willing2Learn
    Willing2Learn Posts: 6,290
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    We are committed to holidays because we bought in to it back when I was working.
    Is that some form of legally binding contract?
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    :smiley:
  • Is that some form of legally binding contract?

    Yes it is. We tried to get out it but wasn't possible
  • Karonher
    Karonher Posts: 909
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    Could the cars be downgraded? They must be quite big or new to be worth £18,000.
    Aiming to make £7,500 online in 2022
  • Karonher wrote: »
    Could the cars be downgraded? They must be quite big or new to be worth £18,000.
    Hubby has a nearly new one. The other one is worth about £1500
  • Most of the debt is my fault, OH doesn't know about it all, Hence him buying a different car
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