I’m in debt and I’m not sure how to go about it

[Rainbowandrosessss]

Hi all,

I’m in a massive amount of debt. I was always. Good saver with at least £5K in my account. A financially abusive left me with nothing, and in thousands of debt, about £8,000.

I am self-employed having just gone back after having a baby, and I earn pretty good money. However, so many things come out of my account that I am constantly left with next to nothing. It’s also difficult because my invoices are paid in drips and drabs, so my account is never full if that makes sense. I am late on some payments and it is massively overwhelming me.

I was just wondering if anyone could advise on how to go about this. I have Googled debt companies but I just don’t really understand it. I am paying off what I can but am massively in my overdraft. I’d just really like to sort it out as I just feel like a failure because of it.

Thank you in advance x

Can you make a list of all the dribs and drabs?

I've heard really good things about Christians Against Poverty - you don't have to be a Christian to speak to them xx

I was in £14k of debt. I didn’t even have a good reason for it, I just went bonkers when I was in my early 20s, using credit cards, overdraft and catalogue accounts to fund a lifestyle way beyond my means. It was manageable at first but the minimum payments grew and then came the late charges, until I was paying out £800+ a month to debt and putting my food shop on a credit card.

In 2016 I called Step Change and set up a repayment plan. They go through your income and outgoings with you and set an affordable payment. Your interest will be frozen too so you’re chipping away at a set amount.

Last month I paid my final instalment and I’ve never felt relief like it. I promise it’s a hole you can climb out of even if it doesn’t feel like that now.

Perhaps post on Money matters topic - people often have good advice. Obviously with a business cashflow is really important and rubbish when people don't pay on time All I would say is if any of your debts are credit cards - don't just pay off the smallest amount by direct debit , make a standing order for what you can afford over the minimum as this will chip into the overall amount and reduce the interest.

Sorry f not helpful but there are many people on here who will be able to help you , re who to contact about debts etc and I do wish you very very well.

Oops , cross posted - already people with good advice - all best

Are you paying yourself regularly from your business account? Do you have a steady income? What are your monthly expenses? Are you claiming all benefits you are entitled to? Is the baby's father contributing?

@amusedbush congratulations (hope that doesn't sound patronising). An amazing achievement.

Get on top of your outstanding invoices - do you have set terms for payment? Do the people who pay you pay on time? If they need chasing, set yourself calendar reminders for exactly when they’re due and ensure you chase them if they don’t pay on time. I work in a similar business and you wouldn’t believe the amount of chasing I have to do to get the money I’m owed for jobs. It’s almost a job in itself. If the cash flow is better everything else improves

[quote Woui]@amusedbush congratulations (hope that doesn't sound patronising). An amazing achievement.[/quote]
Thank you very much! I paid it off a few months early with some savings and it feels amazing.

I turned 30 this year so it feels like a fresh start for a new decade.

I need to make a huge list but my outgoings are around £1800. Baby’s father is contributing but not very much. I am the ‘bread winner’. I’m freelance so don’t have a business account. Payment is always between 30-45 days, which is the law in the industry I work in unfortunately.

I am claiming child benefit, not getting anything from UC anymore. I will get in touch with the company above thank you!

Martin Lewis website has lots of advice on how to get help with debt

I don’t see why you haven’t got a business account.
Are you putting all Possible expenses through the business and taking them off your tax bill? Can you up rates or get more clients ?

Please do contact Step Change or Christians Against Poverty. Both are good, and their services are free.

I have a small business and while most of my money comes in when it should, I do need to chase sometimes. Set your terms for the minimum you can and chase up as soon as the due date comes. I’d echo having a separate account for business- it’s didn’t need to be a business account but one where you can easily see what comes in and can draw money over as you need it.

Step change and the way no horrid form filling they talk you through it over the phone abs contact creditors for you

Firstly, can I just reassure you that whilst £8k may feel massive to you at the moment because you're overwhelmed, it's not an insurmountable figure.

Is the debt from multiple sources?

My first thought would be to see if you can consolidate it so you have one regular repayment rather than lots to keep track of. I'd look at getting that overdraft included too as the interest you're paying on that will be a lot. And if you time it right, you can get away with your first repayment being 6 or so weeks later which can give you a bit of breathing space in the immediate term.

Also one regular payment means less likelihood of missing payments which will keep your credit file as tidy as possible for any future credit requirements.

Contact StepChange they saved us from losing our house. They deal with everything for you.