To want to try and pay off debts

[bellissimiaow]

Even though I'm terrible with money, and am currently earning less than usual due to covid?

I need talking through it, apps that help, spreadsheets, systems, Facebook groups, anything that I can use to get the right mindset. I have a credit card and loan that I really want to pay off, quite a large amount in total.

Any tips please?

The first thing you need is a budget. Income less every monthly bill less a monthly amount for annual expenditure such as insurances, Christmas etc etc etc. Be honest with yourself!

First things first.

Make a list ( or a spreadsheet) of every single outgoing. Even Netflix, petrol, food shop literally everything.

Then you'll know what you've got left over.

You can then decide what you can afford to overpay on your loan or credit card (whatever is highest interest goes first) and then when that's gone move on to the other.

I would check if you can swap your credit card to a 0% one. Money saving expert website has an eligibility calculator which will show you if you're likely to get one without damaging your credit score.

I'm sure there will be experts along soon with more advice!

First I would add up all debts & what you interest you are paying on them.

Then as pp said you need to take your income & list all expenditure & work out what you have "spare"

Ideally use the spare to pay off the debt with the higher interest but if you had say 3 cards pay more then the minimum on all of them even by a small margin unless there are 0%.
Try & get some 0% credit cards & do balance transfers.
Depending on debt size & interest paid a loan might be better as it has a fixed end.

MSE budget planner. Download the spreadsheet and fill it in honestly.

Then choose how much you can realistically take out of your income each month to pay off debt and do it. Set up a DD so it leaves your bank account as soon as your pay comes in.

Review your budget often. Monthly at first. So you can cope with any additional expenses in a particular month. Once you get to grips with your finances you'll be able to reduce how often you review and how long it takes because you will know your situation better

Mint is a good app for this, if you like having everything in one place instead of a budget spreadsheet in excel and the. Having to manually look up credit card balances, add you spends from your bank accounts, etc etc.
It helps you draw up a budget because it pulls together all your information from credit cards, loans etc and also tracks your spending. Many people use it to get back on track with paying off debt and building savings.

Here is a quick tutorial
m.youtube.com/watch?v=IgZSyRVjhsg

So you can see if it might work for you.

If you are really struggling you could contact Payplan or Stepchange who will set up plans for you and get interest frozen- but it does affect your credit rating and you need to not take out further debt during the plan.

If your on Facebook go on Beat the bailiff page they are amazing at wiping the debts off,
If your debt has been sold off to a third party IE Lowell, providence etc then you can wipe them off they are great at helping you do it.
Best way is to ring them up if there still with the original debter and arrange a small payment plan x

So for an all-singing app that you can have on your phone, and a program (all linked) for your computer, I’d recommend YNAB (you need a budget). Search on the App Store or just go to their website www.youneedabudget.com/ and, you get the first 34 days free to see if it’s for you.

Secondly, head over to mseforums. There’s lots of good advice on the debt-free wannabe board, as well as all the best deals on their website.

Look at your credit cards and see if you are spending regularly on something you can do without, eg take away coffee or meals. This can add up over a month/year.

Just like the others said - first do a complete budget of your income vs outgoings.

How high interest is your debt? Could you call them to ask for a freeze or would you be able to transfer it to a 0% credit card?

Do you have an emergency budget? Depending on the level of debt and interest rates, this might be a priority over repaying the debt. You should be aiming to have 3 months worth of savings really.

Make the Moneysaving Expert website your friend. Do the money makeover and do everything that's relevant.

You need to work out whether you can get out of debt in a reasonable time by just cutting back on non essentials, or whether a formal solution, even bankruptcy is best, or anything in between. No-one can answer that question, without full details of your situation.

www.moneysavingexpert.com/family/money-help/

Also get the weekly email for ongoing tips on being better with money.

Thank you everyone. I've tried to do this so many times in the past but for some reason I find it really difficult to stick to.

I've moved my credit card balance to one with 0% and I already have a list of everything I pay out. I have tried YNAB and Starling bank previously but I just can't seem to stick with it. I know what I need to do, it's more a mental thing I need help with. Not spending what I don't need, its this bit I struggle with.

I wouldn't mind but I can't even go out, so no pub/coffee spending etc. I think its food that I overspend on, and then ordering things online for the house. Thats my downfall.

can you take the money out as soon as you get paid so you have only X amount in your account.

Do online banking and arrange everything coming out the same day (I use the 1st of each month) which helps

I’m similar to you so for the last 3 months I’ve changed all my bills to come out on payday, then i send the allocated money for the month for food into my Monzo account, the remaining money is split into pots e.g dog, Xmas/bdays, emergency fund etc Even tiny amounts add up. If i want to buy anything not budgeted for I have to wait till the end of the month to see if I have spare, by then I’ve usually gotten over the urge to spend. Last month I managed to save an extra £400 towards credit card debt so it works (although I did sell some stuff which bumped it up)
Every Monday I check my account and pots to make sure I’m on track, if I’m not I adjust.
I also found the Dave Ramsey 7 steps method excellent, snowballing your debt eg smallest first, then you add that payment plus the original payment to the next debt and so on.

I used to order loads of stuff for my horse that were just completely unnecessary. Now what I do is leave it a day. If I wake up the next morning thinking about how much I want it then I order it, if I don't then I don't order it. That helped me get out of the mindset of enjoying getting deliveries every day (especially dangerous in lockdown when there's not much else!).

Can you buy a colouring book or cross stich set, something to pick up and distract you when you feel like ordering something for the house?

Also as someone else said, set up a DD to your loan/credit card for straight after you get paid, then you can't possibly spend it.

I have started waiting until the next day before I order anything and most of the time by then the urge has gone. I've done quite well not buying things this month, and I've bought meat in bulk and lots of fresh fruit and veg so we've got plenty of food in and i don't keep nipping to the shop. But I've still got a dangerously low amount left. I've not put any more on my credit card though which makes me think I was using that to top up (and hence the problem)

So I need to stop spending the extra I used to use the credit card to top up for PLUS find some more to start paying it off