How much debt are you in?

[ScottyDottyDooDah]

DH and I were stupid when we were younger. Got into c£20k of debt, then a combination of redundancy and other circumstances meant we had to enter into a debt management plan

We paid it off over 5 years and obviously completely screwed our credit rating in the process. I swore that id never be in that position again.

Fast forward 10 years, and we're both good earners and live a comfortable life.

He was diagnosed with a life-changing but not terminal illness last year, which we were advised that his critical illness insurance would pay out on.

So (stupidly, I know), we splashed out.on some home improvements and other bits and pieces, on the tick, with a view to paying the debt off with the payout.

A technicality means that, you guessed it, the policy isn't going to pay out. (We've argued it all the way to the ombudsman, to no avail.)

So we're now £30k in debt. We can easily afford the repayments, so we're really lucky in that respect, and have as much job security as we could hope to have, but im feeling so foolish.

So I'm hoping that I'm not in my own with that amount of debt? (I'm not even counting our mortgage!)

Please, no harsh judgement - we couldn't feel more stupid. Also, please no "I'd never let myself get into debt..." replies - they're not going to make me feel any better!

[MrsBobDylan]

Hey op, I have been gradually getting myself into debt over the last 10 years - we even move to a much cheaper house as a solution when I lost my job but it was like a slow puncture with money seeping away and debt building up.

We have 20k of debt and a fucked credit rating. We have just entered into a DMP with the help of Step Change and will be debt free in 3 years.

Debt is so common now, all it takes is redundancy, illness or a big expense to push us over the edge.

You will be fine - could you extend your mortgage?

[ScottyDottyDooDah]

Stepchange helped us. They were really good and supportive, so use them as much as you can.

No, can't extend the mortgage - its cheaper to be paying back our loans at the rate we secured them at, and we also did a help-to-buy thing on our current house, so I don't think the equity is there.

Just feel so bloody stupid

[SandysMam]

OP try not to kick yourself, you have obviously been through a horrible time if your husband was sick enough to expect a critical illness payout. Focus all energies on paying the debt off and not getting into any more.

[Bobblehatwobble]

I was in 14k of debt after a hideous divorce where my very abusive ex stole money from my accounts, I had to move away (abusive/restraining order etc), take a lower paid job so my finances took a massive hit. Went on a DMP and paid it all off just before lockdown two and a half years later.
Now in 1.5k of debt on a credit card because of IVF treatment costs going over budget. Will use inheritance next year to pay it off if I haven’t managed to do it monthly by then.
These things happen, it’s nothing to be ashamed of (the shame was horrid for me) and you aren’t alone. As long as you focus on paying it off, everything will be okay.

[Kljnmw3459]

We ended up with 15k debt due to ill health, sick leave and unemployment. Ruined our credit ratings. It took us forever to get back on track. I hope never to be in the same situation again but you never know what is around the corner.

[BananaFlavouredPancakes]

Yep, we're about 38k in debt between a loan each, a handful of credit cards and the car. Gathered through the years from both going back to uni (but not living like students again lol) and just generally being good to ourselves over the years. We earn comfortably and have relatively secure jobs but I do worry about it for the reasons other PP have said and we haven't yet got a mortgage so we know that debt will stand in our way until we get it well down at least. No judgement here!

[bellalou1234]

Hi op I calculated my debt last week and its 32k I feel sick when I see it. That's as previous post going back to uni, and living beyond my means.

[CatFaceCats]

I have £900 on my next account. I’m recently separated and have used it for clothes for me/kids and house stuff.
In my youth though, I got into quite a bit of credit card debt. My mum had to help me pay it off, and I paid her back every penny.
Now I have 1 clear credit card with a £1000 limit. I’m so incredibly careful nowadays as it’s purely for emergencies only.

[user1494101503]

About 3k. We had to use a credit card for car repairs, electrical bill, food shopping, petrol, new school uniform. It quickly adds up!
We can only pay the minimum back at the moment but hoping after Christmas we can start paying off larger amounts. This doesn’t include our mortgage

[BackforGood]

So..... you only want people to post if they have large debts ?

Or... do you want to know how this pans out across a range of people ?

[Marmunia1975]

None. We've always paid our credit cards off in full. Never even had a loan, apart from the mortgage. My credit rating is 973.

[ballsdeep]

We were on about 16k but lockdown was good for us financially wise. We've paid the lost off apart from 1k on card and made us realise how much crap we spent money on

[Indecisivelurcher]

We were at £18k and about to £28k last Christmas IF I had agreed to get the car DH thought we should. Thank goodness I dug my heels in, it would have been sat on the drive through lockdown. Instead we've really prioritised paying debts off, now down to £5k and got an emergency fund in the bank. I followed Dave Ramsey and looked up UK interpretations of, which I've found eye opening!

[Houseplantmad]

Did you know you can appeal the ombudsman? We did and won our "case". The appeals officer apologised for the decision the ombudsman had made and acknowledged it was wrong. We were repaid soon after.

[Doozy1991]

Calculated mine the other day... Its 15k... I'm trying my damn hardest to pay it off, but between being on maternity pay, 2 kids and an OH who can't work it's tough.

[icecream2965]

I was dx with a life changing progressive condition, no insurance. I panicked about long term security and decided to buy a bigger share in my property (shared ownership) to build some equity, following a promotion. My Housing Association messed up and quoted the maintenance as being a third of what it was to the mortgage company so I passed the affordability to buy a bigger share. Then got the actual quote (it was only my 2nd year of living there so I was optimistic!) for the maintenance, so that was a stretch.

In order to buy the bigger share I'd borrowed just under 10k from DM to pay off my student loan, under the promise of making quite large repayments. What actually happened was I paid DM off, but merely built up the debt on credit cards, so a few years on I was not much further on in repaying it. Bearing in mind the debt is just for a single person, it starts to feel quite scary when you know you couldn't pay it back in 3 months etc.

The way I have got out of it (2.25k to go) is getting a higher paid job, stopping frivolous spend as much as poss, also over lockdown I saved as much as poss, which helped the anxiety and made life simpler, and am now drip feeding it to pay off debt in chunks.

There is no way round it but find what works to make it feel less of a slog...

[wirldsgonemad]

£12k debt on my car; £2k on credit cards, £400 on sofas, plus my mortgage which is a lot. A bit of debt is normal, don't sweat about it.

[tissueboxx]

About 30k but all affordable and could repay it early if we wanted/needed to. Not all debt is bad debt. Sorry this happened to you, glad you can afford the repayments though. Don't beat yourselves up.

[Rosadela]

£900 but it’s creeping up. I split up with my long term partner and had to buy loads of new things like fridge freezer/washer/oven/sofa etc and i even got the cheapest versions of each item I could find I’m paying £70 a month off so should be debt free in 13 months or by next Christmas

[Rosadela]

I agree though OP, it does help to realise you’re not alone and there are people with the same struggles

[SonjaMorgan]

I was in debt but clawed my way out. Never going back there. I know many people who are juggling lots of minimum payments at the moment and struggling so you are in a better position than many.

[chunkyrun]

I was in the very dire situation of not having enough money to cover all bills and living expenses. Accrued debt each month. Very difficult place to be. Things have thankfully improved. Trying to pay off last credit card which has £1800 on. Then going to tackle car finance of 4K

[BashfulClam]

Apart from my mortgage I have nothing, I was in £10k due to an abusive relationship. It took me years to pay it off but the day I made that final payment I could have jumped for joy!

[ssd]

Op, why didn't it payout?
Maybe someone here could help you with advice?