To feel worried that I've got myself into debt

[ImInDebt]

I have never been in debt in my life.i am a low earner but I have always paid credit card bills in full and never used the overdraft facility from my bank. Im very on top of my finances and use a budgeting app too.

However over the past 9 months or so I have got myself into debt in the first time if my life and its making me feel really scared and worried for the future.

It's just sort of creeped up slowly. A little bit here and a little bit there and before you know it I've wracked up £500 + debt.

I'd like to say that I've blown it on a holiday / clothes / unnecessary stuff but no - it's been things like shoes for the kids / uniform / groceries / clothing for the kids /repair to my front door / my oven needed a replacement part and so on.

There's so much other stuff coming up as well that I'm dreading how I'm going to pay for it all.

The worst part is our household income has actually increased slightly over the last year (new job) but I feel so much worse off than before.

I think I'll be okay managing this debt however Im wondering I'm not the only one whose got myself if into this situation despite being quite good with budgeting.

It does happen quite easily and then can slowly spiral. It's good you have noticed it early before it gets to four figures.

Start by going over direct debits and see if there is anything you don't need such as subscriptions to things and then cancel those. Then meal plan so you don't over spend at the supermarket. Little changes make all the difference.

I’m on a low, fixed income since I retired. I can save very little, but I use a method called ‘save the change’ offered by my bank. Every time I use my debit card, the difference to the nearest whole £ goes into a savings account. For example if a payment is £4.25, 75p goes into the savings account. The amounts this has generated have been useful for purchases I might otherwise have put on a CC.

On the positive side, you have recognised that it is happening. It is all too easy to get in to debt, it is hard to get out. Lots of things now encourage us to use debt. Costs are going up, income may not be keeping pace.

Budgeting and tracking to make sure you are sticking to the budget is important. I know that I am a bit lacking in that - I am tracking but not budgeting.

You have caught the problem early, so time to clamp down on those unnecessary expenses and to try to find ways to keep the necessary expenses low, so more income can go to payoff the debt. It's hard though with the way prices are increasing at the moment, food, fuel, energy, council tax, National Insurance, it's all increasing and we did not anticipate it all doing so quite as rapidly as it has.

Well done for realising it is happening and for being concerned about it. You will do someone about it.

Sorry to hear you're going through a tough time, @ImInDebt. You're probably across this already, but are you sure you are claiming all the benefits you are entitled to?

If you are the only adult in your home do ensure you are claiming your 25% council tax discount. Also check out www.entitledto.co.uk in case you are eligible for anything else. Also you might be able to claim a tax allowance if you WFH www.gov.uk/tax-relief-for-employees/working-at-home

Good luck and I hope things get better for guys ion. 🌹