I'm panicking about how much debt I'm in and feel frozen

[churchmouse84]

I'm trying to breath through it. I know it's OK and not a disastrous situation but I need to get a grip.

I run my own business but really haven't had a grip on finances as I should.

We've also had some house renovations which have gone over budget.

I've used all of my savings and have £15,000 on credit cards.

We have applied to extend our mortgage to cover it which should hopefully be fine.

Business is going well at the moment so the repayments shoudn't be a problem.

However I'm paralysed with fear. I feel so ashamed for getting into so much debt and, whilst I should be trying to find more clients to pay it off, I just sit at my computer with chest pains.

I suffer from anxiety and this has set me off.

It has just kind of crept up on me. I feel such a fool.

DH has just taken on a new role with huge travel costs so there is a lot more responsibility on me to cover the finances. I feel stuck

Please tell me it will all be OK

Go and talk to someone, as there is probably a way to manage your situation better and get a clearer picture of your financial situation.

Try the CAB
www.citizensadvice.org.uk/debt-and-money/

Okay don't panic there is help out there.

www.businessdebtline.org is free of charge for self employed people, once they've helped you go through your finances they might refer you onto Step Change Debt Charity. They are paid for by donations from all the large banks and building societies to make sure support is there when you need it.

Don't suffer alone, they will help you get a clear plan of action in place so you can sleep better.

Actually you sound like you and your dh have a plan to deal with the debt and what you need help with is managing your anxiety. Have you been to the GP? I don't know what other options there are when it comes to anxiety and panic but I think you need to focus on getting some support for this.

I agree with DeadZed.

House renovations are expensive and notoriously go over-budget. But it’s an appreciating asset, so an investment. You haven’t wasted it. Putting it on the mortgage is just relocating the debt where it “should” live.

Your business is going well. Keep breathing.

Your DH’s travel costs - does the new role reimburse them, or come with an uptick in salary to justify it? Is it just cash flow you worry about?

Get a budget written. Treat that as urgent and take a day or so of work time to do it properly. You’ll feel more in control and better able to concentrate and prioritise.

Have you had an approval to extend? £15k of debt will have some impact.

Putting it on the mortgage is just relocating the debt where it “should” live. but it sounds like some of it is business debt?

Have you taken advice about how to run a small business? What to set aside, how much to re-invest? when to take a salary?

Money can be earned, work through it, you are not the only one in debt. It is stressful, but you’ll be fine. Try to think of positive things in your life. Also never know you might get good business deal or a large client. You have a good plan to pay it off and when it’s done, you’ll feel relived. In the meantime don’t beat yourself up, you’ll be fine. Give yourself space to calm down and get energy to work through it.

Thank you. That's made me feel so much better.

I need to get my head down and work my way out of it.

I'm sure it can be done. I feel a little calmer now. Thank you