Getting out of debt
Discussion
Right before I begin, a couple of formalities. This is not my first post by any means I have been an active member on here for a good few years here now. But due to this being such a personal thing and also having a few friends on here away from PH. I have decided to use another account to keep this annonomus.
Right basically over the last couple of years I havent been too careful money wise. Spent more than I should have and also tried to do the whole head in the sand thing and ignore everything. But now it's at the point where legal action is the next step & I really need to do something about this.
I currently owe about £3 in unsecureced debts, Overdraft, credit cards, bank loan. Not being careful with my spending hasnt helped at all. But I get paid on a rolling 4 week so my pay date is never exactly the same. This has also been a contributing factor especially with direct debits, as sometimes due to pay day moving around I have had direct debits going out just before pay day and being returned simply because the money hasnt been there. This has ended up in returned direct debit charges from the bank further adding to the mountin of debt. I have also missed a couple of credit card payments lately which has resulted in going over limit and further charges from this. So at the moment I'm just getting further & further into debt, and struggling to repay this, and also because of this it's leaving me with less money each month and ive been having to find more from somewhere sometimes just to even get to work & back. Last month I ended up having to get a payday loan. This has been a real wake up call at how bad the situations gotten.
My credit raiting is now very poor so the chances of one huge loan really isnt going to happen. Ideally I need to get all debts together into one payment and if I could get this set up to go out maybe one or 2 days after payday it would be ideal. But is it possible to get a direct debit set up on a rolling date?
What im looking for really is advice on what to do to fix this situation. I am reluctent to ask any family for help as tensions are allready high and would just add to more problems. I did start looking at these debt management companies and think it could be of use. Was looking at one called "The 1 Plan" but unsure on who is genuine and who is really worth looking at.
Any advice really appreciated. And I know I have been an idiot and should not have let myself get into this situation in the first place so I really dont need the sarchastic comments. I just need any useful advice on how to get this sorted ASAP so I can stop loosing sleep and actually have money again.
Right basically over the last couple of years I havent been too careful money wise. Spent more than I should have and also tried to do the whole head in the sand thing and ignore everything. But now it's at the point where legal action is the next step & I really need to do something about this.
I currently owe about £3 in unsecureced debts, Overdraft, credit cards, bank loan. Not being careful with my spending hasnt helped at all. But I get paid on a rolling 4 week so my pay date is never exactly the same. This has also been a contributing factor especially with direct debits, as sometimes due to pay day moving around I have had direct debits going out just before pay day and being returned simply because the money hasnt been there. This has ended up in returned direct debit charges from the bank further adding to the mountin of debt. I have also missed a couple of credit card payments lately which has resulted in going over limit and further charges from this. So at the moment I'm just getting further & further into debt, and struggling to repay this, and also because of this it's leaving me with less money each month and ive been having to find more from somewhere sometimes just to even get to work & back. Last month I ended up having to get a payday loan. This has been a real wake up call at how bad the situations gotten.
My credit raiting is now very poor so the chances of one huge loan really isnt going to happen. Ideally I need to get all debts together into one payment and if I could get this set up to go out maybe one or 2 days after payday it would be ideal. But is it possible to get a direct debit set up on a rolling date?
What im looking for really is advice on what to do to fix this situation. I am reluctent to ask any family for help as tensions are allready high and would just add to more problems. I did start looking at these debt management companies and think it could be of use. Was looking at one called "The 1 Plan" but unsure on who is genuine and who is really worth looking at.
Any advice really appreciated. And I know I have been an idiot and should not have let myself get into this situation in the first place so I really dont need the sarchastic comments. I just need any useful advice on how to get this sorted ASAP so I can stop loosing sleep and actually have money again.
I'm assuming your £3 is a typo? In your position I would tot up what a single months worth of repayments for all your debts are, and sell enough stuff to get that amount of money. This will enable you to ensure that you can get to the point where the money from your salary comes in before it goes out.
Talk to a proper debt counsellor
Talk to a proper debt counsellor
There may be lots of little things you can do. A couple of basics:
Firstly, stop spending on EVERYTHING non essential. Starbucks isn't essential, nor are takeaways, nor is buying 'evo' every month.
Next, as the chap above said, sell some stuff. Use ALL the money to clear debts.
Good luck!
Firstly, stop spending on EVERYTHING non essential. Starbucks isn't essential, nor are takeaways, nor is buying 'evo' every month.
Next, as the chap above said, sell some stuff. Use ALL the money to clear debts.
Good luck!
Presume you mean £3k?
Analyse your bank statement, look at your direct debits first - get rid of anything you do not need, if you can't cancel them for contractural reasons, reduce them to lowest tariff I.e. Sky package, mobile phone etc.
After you've got those to a minimum now look at what else your wasting money on,
Food shopping? Do you plan meals or chuck stuff randomly in the trolley? Start planning and use the local butchers along with lidl and aldi. Batch cook, fill the freezer and use left overs for snacks and pack up.
Magazines / newspapers / buying crap from the petrol station when you fill up, that can all stop.
Takeaways / maccy ds etc, stop that.
Stop buying coffee if you do from costa etc that can easily hit £50 / month.
Pushbike any car journey less than 5 miles where possible.
Stop any spending on clothing / unnecessary car parts / nights out / days out / holidays
Basically your outgoings should be,
Mortgage / rent
Insurance
Gas
Water
Electric
Council tax
TV licence
Food
Fuel
Analyse your bank statement, look at your direct debits first - get rid of anything you do not need, if you can't cancel them for contractural reasons, reduce them to lowest tariff I.e. Sky package, mobile phone etc.
After you've got those to a minimum now look at what else your wasting money on,
Food shopping? Do you plan meals or chuck stuff randomly in the trolley? Start planning and use the local butchers along with lidl and aldi. Batch cook, fill the freezer and use left overs for snacks and pack up.
Magazines / newspapers / buying crap from the petrol station when you fill up, that can all stop.
Takeaways / maccy ds etc, stop that.
Stop buying coffee if you do from costa etc that can easily hit £50 / month.
Pushbike any car journey less than 5 miles where possible.
Stop any spending on clothing / unnecessary car parts / nights out / days out / holidays
Basically your outgoings should be,
Mortgage / rent
Insurance
Gas
Water
Electric
Council tax
TV licence
Food
Fuel
Gaspode said:
Talk to a proper debt counsellor
^^^^^ Agreed, https://www.moneyadviceservice.org.uk/enI would start by setting up another bank account, when paid transfer out to that account the amount you can spend leaving sufficient in the existing account to cover the bills when they get taken, that gets round your moving payday issue. That should be a good thing anyway though, you are paid 13 times a year yet your bills go out 12 times a year so once a year you get an extra payday you don't have to pay bills from.
But really it's all about attitude of mind and self control. Know how much you can spend after paying your bills and paying off some of your debt and make sure you stick to it.
But really it's all about attitude of mind and self control. Know how much you can spend after paying your bills and paying off some of your debt and make sure you stick to it.
Assuming that you mean £3k and you're child free, this kind if debt isn't insurmountable especially if you can give yourself enough of a buffer to avoid penalty fees.
As other posters have said you need to cut back to the essentials only: housing, utilities, food, essential travel, essential medication. For food eat healthy and plainly, no takeouts, junk food, packaged snacks, or organic finest prepared meals. For things you can't stop, look at reducing or suspending contracts if these options are available. Look for free alternatives for entertainment, gym etc. You may be pleasantly surprised.
You also need to sell stuff if you can. Ebay isn't as cost effective as it used to be. However, boot fairs, classified ads on staff boards at work or gumtree may all help raise some cash. If you have stuff unopened at home, take it back to the shop for a refund if it's still possible.
If you can, get a second job until your debts are cleared. Put the entire pay package toward clearing the debt. Bar work or care work might be feasible for example. Check your current work contract though in case 2nd jobs need to be authorised.
Speak to the money advice service and work out where you went wrong. Where has the money gone? Are you buying expensive stuff you don't need? Are you going out a lot? Is it just getting frittered away on little things like convenience food, magazines etc? What can you do without? What can you substitute? Why are you spending in the way you are? Having a plan for how you'll manage future spending will really help.
As other posters have said you need to cut back to the essentials only: housing, utilities, food, essential travel, essential medication. For food eat healthy and plainly, no takeouts, junk food, packaged snacks, or organic finest prepared meals. For things you can't stop, look at reducing or suspending contracts if these options are available. Look for free alternatives for entertainment, gym etc. You may be pleasantly surprised.
You also need to sell stuff if you can. Ebay isn't as cost effective as it used to be. However, boot fairs, classified ads on staff boards at work or gumtree may all help raise some cash. If you have stuff unopened at home, take it back to the shop for a refund if it's still possible.
If you can, get a second job until your debts are cleared. Put the entire pay package toward clearing the debt. Bar work or care work might be feasible for example. Check your current work contract though in case 2nd jobs need to be authorised.
Speak to the money advice service and work out where you went wrong. Where has the money gone? Are you buying expensive stuff you don't need? Are you going out a lot? Is it just getting frittered away on little things like convenience food, magazines etc? What can you do without? What can you substitute? Why are you spending in the way you are? Having a plan for how you'll manage future spending will really help.
lots of sensible advice on here and well done for recognising the issue and wanting to do something.
1) Do talk with a debt counsellor, they are experts
2) Protect your income by working diligently and ensuring that you keep your job (think about a 2nd job if that is feasible)
3) Look realistically at your outgoings and cut out immediately the 'nice to have choccy bars, magazines, coffees, treats'
4) look at your bills and every week tackle 1 e.g. change electric supplier to the best tariff
5) Tell your close friends so that they do not tempt you to spend money
6) Find cheap activities/hobbies to keep yourself engaged
7) reward yourself every 2k of debt with a small (I do mean small) treat of 30 quid
The above advice was shared with me by a friend in a similar situation and it worked for them. All the best
1) Do talk with a debt counsellor, they are experts
2) Protect your income by working diligently and ensuring that you keep your job (think about a 2nd job if that is feasible)
3) Look realistically at your outgoings and cut out immediately the 'nice to have choccy bars, magazines, coffees, treats'
4) look at your bills and every week tackle 1 e.g. change electric supplier to the best tariff
5) Tell your close friends so that they do not tempt you to spend money
6) Find cheap activities/hobbies to keep yourself engaged
7) reward yourself every 2k of debt with a small (I do mean small) treat of 30 quid
The above advice was shared with me by a friend in a similar situation and it worked for them. All the best
As said lots of sensible stuff.
Are you single with a spare room? How about a lodger.
The Citizen Advice Bureau should be able to help find a debt councillor. Don't get involved with any loan or debt consolidation until you have had advice and formed a proper plan.
You will have more control once you have completed these steps and feel much better for it.
Are you single with a spare room? How about a lodger.
The Citizen Advice Bureau should be able to help find a debt councillor. Don't get involved with any loan or debt consolidation until you have had advice and formed a proper plan.
You will have more control once you have completed these steps and feel much better for it.
All good advice,
One other thing which may help is to have a set weekly budget for essentials which must be bought plus a little extra for a luxury to keep you sane (£5-10).
Withdraw the amount you need according to tight budget (Lidl food, reduced price meat, minimum driving etc.) in cash at the beginning of the week, any coffee that catches ur eye comes from your cash so you don't eat...big incentive not to get one! Also knowing your DD's are the only thing coming from your account may also allow you to total them and withdraw the excess which is all you have to live on each 4 weeks
One other thing which may help is to have a set weekly budget for essentials which must be bought plus a little extra for a luxury to keep you sane (£5-10).
Withdraw the amount you need according to tight budget (Lidl food, reduced price meat, minimum driving etc.) in cash at the beginning of the week, any coffee that catches ur eye comes from your cash so you don't eat...big incentive not to get one! Also knowing your DD's are the only thing coming from your account may also allow you to total them and withdraw the excess which is all you have to live on each 4 weeks
Sorry, it was a typo, it is only £3K
i still live with parents and pay no rent currently (how much longer that will last in not sure) no bills such as sky etc, just my mobile contract (£34 a month)
it all started when i lost my second job in the pub, i suddenly found myself short of £120 a month, and ended up borrowing one month due to having short hours in my other job, and because i had to pay back that the next pay check, i was short again the next month which led to more borrowing. And its all just spiraled from there really.
i still live with parents and pay no rent currently (how much longer that will last in not sure) no bills such as sky etc, just my mobile contract (£34 a month)
it all started when i lost my second job in the pub, i suddenly found myself short of £120 a month, and ended up borrowing one month due to having short hours in my other job, and because i had to pay back that the next pay check, i was short again the next month which led to more borrowing. And its all just spiraled from there really.
£3k is barely classed as debt, its barely the balance of one of my credit cards. Its the late payments etc that are your worry as well as the payday loan.
What do you earn if you are happy to say, you're anonymous so shouldn't be an issue.
If you have no outgoings then i don't see an issue with paying a huge chunk each month
What do you earn if you are happy to say, you're anonymous so shouldn't be an issue.
If you have no outgoings then i don't see an issue with paying a huge chunk each month
Haha. 3k and you live at home?
Chill out. More people than you'll ever realise owe closer to 30k in similar circumstances.
Three grand is a couple months effort. Easy done.
Edit to say, I always found a little dept a good thing - kept me motivated in holding down a steady income. Otherwise, I'd have probably just become a bearded street drummer who drank himself to death before the age of 30...
Chill out. More people than you'll ever realise owe closer to 30k in similar circumstances.
Three grand is a couple months effort. Easy done.
Edit to say, I always found a little dept a good thing - kept me motivated in holding down a steady income. Otherwise, I'd have probably just become a bearded street drummer who drank himself to death before the age of 30...
Edited by SuperDude on Saturday 17th May 12:27
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