Embarrassed by debt

[kindledrama]

I'm a single parent, work full time with 3 kids. In the last 3 months I've managed to rack up £4,000 on a credit card. I already had a credit card with £3000 on it.

I've started to read around on money saving tips, just signed up to tcb.

I've also read about debt management people? Who can negotiate lesser payments. But what I can't see is if this affects your credit rating? I guess it does.

I feel so silly because all the purchases were silly things, presents, clothes, unnecessary take aways. Food each week but ridiculous amounts of money averaging about £180 a week. I would love a little help and advice?!

It's easily done and there's no judging from me.

You're better off going to the CAB. Make an appointment and take all of your paperwork with you, so bank statements, bills etc. They will do a benefit check while you're there, and can negotiate with your creditors. Some debt management companies charge a fee for their 'help', so please try the CAB or a charity first.

In the mean time do a budget. Work out what you have coming in, and what you have going out. Where can you make savings? Try to pay the higher interest debts first and the priority bills. The water companies have a fund for people on low incomes, and will take people to court for non payment, so get in touch with them. Likewise the council tax will take you to court too, and rent is also a priority. If you can cut down on your virgin or whatever, do that. You can do this, the CAB can help.

Why did you rack up the debt in the last 3 months? How did you manage before then? Sorry if nosey. ..just trying to understand.

You seem to know what was frivolous/excessive so that's a good start. Can you transfer to a 0% card?

If you can transfer to a 0% card and cut up cards. I had loads of debt (student loans and credit cards totalling almost 15k) until I did something about it. I stopped using credit cards. Still have one just stopped using it. Stopped all unnecessary spending and every spare penny went to paying it back. It was horrible. But am now debt free and actually have some savings.

Speak to someone. Make a repayment plan either formally with cc co or an informal one with yourself. Budget and stick to it. No unnecessaries. It'll be tough but you can do it. Also try not taking cash or cards out with you unless you need to.

www.mumsnet.com/Talk/legal_money_matters/2062902-Debt-Number-3-For-those-who-feel-they-are-drowning-and-want-a-way-out

www.mumsnet.com/Talk/credit_crunch/2121622-Jacket-Potato-July-our-frugal-year-is-flying-by?

These are the current debt threads, both are full of practical advice and non judgy.

Second talking to CAB. They helped us.

Don't go to these debt management companies!

Go to cab/money advice who will give you free impartial advice.

Transfer the cards to 0% ones and start paying them off.

Make up a table with income in one column and outgoings in another. Include occasional a such as birthday/Xmas/holidays/home/car repairs. Add a 10% contingency and pay what's left over to the debt.

Try not to worry. You haven't done anything 'bad'. We live in a debt ridden society. You will survive this.

You're not alone...come and join us on the Debt Support Threads (no4 is most current)

Thank you for the advice and links to the threads.

I have always been struggling but luckily my parents have helped me out. I would eat at my parents if food was short, I didn't even think about using my credit card.. Then my tax credits reduced dramatically! I had to dig the credit card out and start using it for weekly shop.. This escalated into buying bits online with the credit card and thinking of it as 'free money' ??.

I probably can manage on the money with some serious cutbacks and probably eating at my parents house again for a while. Thanks again I'm going to read through everything

Kindle drama sounds like you've gone through a tough time. Don't be too hard on yourself - but yes, don't get into more debt if you can help it. Arrange standing orders at just above the minimum and then forget about them.

Have any of you tried the Shelter budget calculator? When I typed my details in it seems to suggest I am spending about £700 a more than I am earning. I have no idea how it can possibly be this much but I am also trying to figure out ways to spend less, though I feel I spend very little anyway.

what helped me was to write up all regular bills in one column and add them together

this is how much you are going to spend regardless where you eat and how much you spend on extras

so you have to find money to pay that once a month

then the rest will be made up of food and paying back your debts

there are lots of threads about frugal shopping and eating

do you have much leftover after essentials are covered?

Well done for acknowledging the problem and getting started. Big first step. All the best.

Well done for acknowledging the problem and getting started. Big first step. All the best.

A budget is a really good idea. I have all my outgoings on a spreadsheet. Wages at top then outgoings and what's left at the bottom.