Discussion
hey all,
so I have rather a large amount of debt , roughly 50/50 loan/0% credit cards..
I don't really want to say how much it is but I guess its over 20k, it is payable with mine and partners wage but its just taking forever and neither of us is savvy with finances sadly.
Now firstly I/we can afford to pay this off. I do not want to go bankrupt or do a IVA etc ..
I just wondered if anyone can point me in the direction of a company ( ideally York's area ) who could have a look at what I owe and help me with a plan with what to pay back and how much to put where each month, so that we can pay if back as quickly as possible and we can start to have a life again.
when I google this all that comes up is debt relief charities and that's not what I need, neither do I need a financial adviser ( isn't that for people with piles of cash) and no lectures , I do am rubbish with money !!!
so I have rather a large amount of debt , roughly 50/50 loan/0% credit cards..
I don't really want to say how much it is but I guess its over 20k, it is payable with mine and partners wage but its just taking forever and neither of us is savvy with finances sadly.
Now firstly I/we can afford to pay this off. I do not want to go bankrupt or do a IVA etc ..
I just wondered if anyone can point me in the direction of a company ( ideally York's area ) who could have a look at what I owe and help me with a plan with what to pay back and how much to put where each month, so that we can pay if back as quickly as possible and we can start to have a life again.
when I google this all that comes up is debt relief charities and that's not what I need, neither do I need a financial adviser ( isn't that for people with piles of cash) and no lectures , I do am rubbish with money !!!
You don’t need a company to advise you on this, that will just incur more costs anyway.
Go to the Money Saving Expert website and join the forums there, haven’t been on for a long time but there used to be a section called Debt free wannabe which was full of knowledgable people on just this subject.
Maybe use a different user name on there if you don’t want to post your affairs on here.
Go to the Money Saving Expert website and join the forums there, haven’t been on for a long time but there used to be a section called Debt free wannabe which was full of knowledgable people on just this subject.
Maybe use a different user name on there if you don’t want to post your affairs on here.
Citizens Advice should be your first call and they are free of charge.
https://www.citizensadvice.org.uk/
Any company you potentially use will charge you in effect making your situation worse.
https://www.citizensadvice.org.uk/
Any company you potentially use will charge you in effect making your situation worse.
I got in a similar position when I was younger and it was manageable but taking time, and I'm saying this without details obviously so I get it may not be this simple, but there may not be any magic other than "spend less and pay it off quicker" if you're in a position to do that.
I'd start with writing down all your expenditures and focusing on what's really needed and what is optional.
Be ruthless.
I'd start with writing down all your expenditures and focusing on what's really needed and what is optional.
Be ruthless.
Terminator X said:
Pay off the highest interest debt first paying as much as you can afford. Minimize the zero interest account until other higher rate accounts are paid. Finally pay off the zero interest account
TX.
Whilst this is definitely the right approach, it might also be worth tackling some of the smaller sums first, even if they're not the highest interest rates. The reason being that this can really help with motivation - going from, for example, 8 different debt payments each month down to 7, then 6, then 5 can give you the motivation you need to finish the job. I wouldn't suggest doing this if it's going to take 6 months for even your smallest debt, but 2 or 3 months would be ok.TX.
Put all of your debts on direct debit, paying the minimum payment each month.
Pick one debt - either the one with the highest interest rate or the smallest one.
Pay everything you can over and above the minimum payment into this one debt until it's cleared, then move to the next one.
Don't try and pay down multiple debts at the same time, it will seem like a never ending task.
Always pay the minimum payments on everything else.
Terminator X said:
Pay off the highest interest debt first paying as much as you can afford. Minimize the zero interest account until other higher rate accounts are paid. Finally pay off the zero interest account
This. And cut down on unnecessary expenditure if you haven't already - eg Costa coffees, takeaways, meals out, all those 'only £5.99 a month' things you sign up for. The more brutal you can be the quicker you'll be in the black 
omniflow said:
Whilst this is definitely the right approach, it might also be worth tackling some of the smaller sums first, even if they're not the highest interest rates.
Agree with this point.Each to their own but seeing the number of bills and payments decrease helped focus that I was getting somewhere.
It might be a psychological win at the expense of a little more money due to the maths benefits of paying the highest interest debts first.
Chris340gti said:
thanks all.
ive kind of sacrificed my credit score by piling into the 0% cards , maxing out the balance. Least am saying a dew quid on interest over the year..
just have to plod on , could be worse , least strictly speaking I can 'afford' to pay it off (eventually)
You should contact Citizens Advice, I know that can be difficult but is a significant first step.ive kind of sacrificed my credit score by piling into the 0% cards , maxing out the balance. Least am saying a dew quid on interest over the year..
just have to plod on , could be worse , least strictly speaking I can 'afford' to pay it off (eventually)
What will happen when the 0% card surfing ends?
omniflow said:
Terminator X said:
Pay off the highest interest debt first paying as much as you can afford. Minimize the zero interest account until other higher rate accounts are paid. Finally pay off the zero interest account
TX.
Whilst this is definitely the right approach, it might also be worth tackling some of the smaller sums first, even if they're not the highest interest rates. The reason being that this can really help with motivation - going from, for example, 8 different debt payments each month down to 7, then 6, then 5 can give you the motivation you need to finish the job. I wouldn't suggest doing this if it's going to take 6 months for even your smallest debt, but 2 or 3 months would be ok.TX.
Put all of your debts on direct debit, paying the minimum payment each month.
Pick one debt - either the one with the highest interest rate or the smallest one.
Pay everything you can over and above the minimum payment into this one debt until it's cleared, then move to the next one.
Don't try and pay down multiple debts at the same time, it will seem like a never ending task.
Always pay the minimum payments on everything else.
Also worth looking at the minimum payments relative to the debt as I know some CCs have a minimum £25 monthly payment regardless of the debt whilst others are 1% of the amount owed.
Depending on your overall credit score, it may be worth considering a consolidation loan - one of the companies you owe money to may do this. Take the loan for as long as they will allow to keep payments down initially and then increase payments as and when you can.
Your bank may be able to help.
List everything you spend and all the direct debits and be brutal.
Living like a pair of monks for 6 months can make a difference. No takeaways, no coffees, no Friday night drinks and cut back on all other non-essentials. Cancel everything that can be cancelled that isn’t essential to keeping you in your home.
When you list everything that goes out, it can be eye opening on the amount of stuff that has just being quietly taking your money that you don’t really need like tv subscriptions and the like.
Start selling stuff you no longer want or need on eBay and Vinted and ring fence it for debt repayments. Sure is may only be a few quid here and there but it will help change your mindset around money.
Good luck!
Living like a pair of monks for 6 months can make a difference. No takeaways, no coffees, no Friday night drinks and cut back on all other non-essentials. Cancel everything that can be cancelled that isn’t essential to keeping you in your home.
When you list everything that goes out, it can be eye opening on the amount of stuff that has just being quietly taking your money that you don’t really need like tv subscriptions and the like.
Start selling stuff you no longer want or need on eBay and Vinted and ring fence it for debt repayments. Sure is may only be a few quid here and there but it will help change your mindset around money.
Good luck!
Obviously do not know you circumstances but at this time of year there are lots of part time jobs in the run up to Christmas. If both of you did one then it would make a big hole in the debt.
I know a few people who through various reasons ran up debt and did this to clear a portion quickly which made the task where worthwhile.
Doing as others have said see which debt is best to rid yourself of and work on that. Citizens Advice is good as well.
The best thing is you realise it has to be dealt with, good luck
I know a few people who through various reasons ran up debt and did this to clear a portion quickly which made the task where worthwhile.
Doing as others have said see which debt is best to rid yourself of and work on that. Citizens Advice is good as well.
The best thing is you realise it has to be dealt with, good luck
National Debt Line and Stepchange.
You have priority bills (mortgage, utilities, council tax, HMRC etc) and non essential bills - unsecured loans, credit cards and car HP etc.
You need to have a serious conversation with yourself.
Is this a blip where you've suffered a reduction in income etc so you need some time and space to get through it or is it that you just have too much debt, it's become unnameable and you're never going to pay it off (min payments on cc's etc)?
If it's the former, you'd be surprised how accommodating non essential lenders will be. You're credit score will be knackered, but you'll get through.
If it's the latter and be honest with yourself, then there are other options available to you including IVA etc which will knacker your credit score for 5 years (6 if you have equity in your house), but you will have a far more manageable monthly payment.
Will you actually need any credit over those 6 years? If you do, can your partner get it etc?
Be honest with yourself and give National Debt Line a call. The first thing they will ask you to do is monthly expenditure form which has already been mentioned and take it from there.
Good luck.
You have priority bills (mortgage, utilities, council tax, HMRC etc) and non essential bills - unsecured loans, credit cards and car HP etc.
You need to have a serious conversation with yourself.
Is this a blip where you've suffered a reduction in income etc so you need some time and space to get through it or is it that you just have too much debt, it's become unnameable and you're never going to pay it off (min payments on cc's etc)?
If it's the former, you'd be surprised how accommodating non essential lenders will be. You're credit score will be knackered, but you'll get through.
If it's the latter and be honest with yourself, then there are other options available to you including IVA etc which will knacker your credit score for 5 years (6 if you have equity in your house), but you will have a far more manageable monthly payment.
Will you actually need any credit over those 6 years? If you do, can your partner get it etc?
Be honest with yourself and give National Debt Line a call. The first thing they will ask you to do is monthly expenditure form which has already been mentioned and take it from there.
Good luck.
As others have said Martin Lewis and or Citizens advice. Plus a big dose of reality check and enduring some good old pain and suffering whilst you stop wasting any money on luxuries to get that debt monkey off your back. Commit to clearing it all. PCP, holidays, takeaways, meals, nights out-gone until you deal with it? The truth is people who live their lives paying off debt end up retiring poor.
Flip it on its head post clearance. Spend what you have left AFTER investing.
Flip it on its head post clearance. Spend what you have left AFTER investing.
All the advice above is great but you have to commit to sorting the problem.
Once you tip the balance into credit you'll be amazed how easy it is to save money.
Being in debt costs money. Clear those debts (other than mortgage) and you'll be on your way.
Best of luck, I've been there and it is survivable.
Once you tip the balance into credit you'll be amazed how easy it is to save money.
Being in debt costs money. Clear those debts (other than mortgage) and you'll be on your way.
Best of luck, I've been there and it is survivable.
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