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Not sure what to do

5 replies

NameChangedForThis1985 · 22/02/2025 09:44

I'll start by saying I have a good full-time job with a higher than average wage. I also have already taken on a second job. I've literally cut back to the bare bones on what I'm spending and am trying to sell things on Vinted, etc. as much as possible.

However, I've ran up a lot of debt - about £40,000 which includes high rates of interest. Most of it is to do with the house as the recent renovation it had undergone when I bought it was done incredibly shoddily (not noticeable at the time) and I've had to spend a fortune putting it right. Examples including the bathroom walls caving in when the previous tiles were removed, having to have the garden foundations, re-laid, etc. Some of the debt is historical from when I was with an abusive ex (long story) and yes some of it is because I was living beyond my means.

I have about £55k equity in my house and was hoping when the mortgage was renewed last year I could borrow against it and pay off the debt. I know that's not usually advisable but would have meant paying £200-£300 a month instead of the £1100 I currently pay! However I was turned down and was able to get a new deal (£250 a month more expensive too) but no additional borrowing.

It's got to the point where I'm really struggling - not as in I'm getting behind with payments but that my leftover money doesn't allow me a life really, plus no room at all for savings, emergencies, etc. I thought about a secured loan but I'm really scared of taking that on! A debt consolidation loan doesn't seem to help as they won't lend me the additional. A second charge mortgage - I don't even know how that works....

I'd really appreciate any advice on what I can do here. (To add my future is financially secure as I'd always pay the mortgage above anything else, I'll also eventually inherit another property and I have a good pension).

OP posts:
LittleGreenDragons · 22/02/2025 10:21

Go to Citizens Advice as they have experts in debt management. They might be able to find a way for you. If not you've only lost an hour of your time but I'm sure they will find a way forward for you.

Rainbow1901 · 22/02/2025 10:23

Don't go down the consolidation route as it is ultimately really expensive in the long run. If you have just renewed your mortgage then you have a little breathing space as that is now fixed for however long it lasts.
It is worth sitting down and writing down all your debts and interest rates and maybe putting them into one of the many debt consolidation apps available on line. Once you can see which is the most expensive you can do minimum payments on all your debts and then snowball or avalanche the highest interest rate charged debt. You can then chip away at your debts but it is a slow process.
Alternatively you could approach one of the free debt advisors such as Stepchange about how you can approach paying these down.
Some Credit card companies will let you (effectively) close your card but fix your payments until the debt is cleared (sometimes lowering the interest rate) but I have no idea of the effect this will have on your credit rating when it comes to renewing your mortgage. If you have any 0% offers available on your cards try and utilise those to bring your debts down sooner.
Money saving Expert has a very good website for information and forums so you can ask for help and advice.
It is hard when you feel you are not having much of a life - been there done that! But there are many people in the same situation as you - it is just life and external factors like the cost of living and house renovations that make it so much harder.
You are doing great - everything is manageable now - it is keeping it that way!!

suki1964 · 22/02/2025 12:12

Get yourself over to the moneysavingexpert forums and on to the debt free boards, they will help you work out your options. You will need to post a statement of affairs - there is a link to a template because sometimes fresh eyes can look over outgoings and see where cuts can be made which you yourself aren't seeing. They will also be able to advise on which debt to concentration on clearing first so you do a snowball effect and also be able to advise on how to get some debts frozen with no more interest being added. They are a wealth of knowledge there

It's awful feeling there is no way out, but there always is a way. Might not be easy for a while but you will get there

AdoraBell · 24/02/2025 23:03

I second the moneysavingexpert website.

Thekaral · 27/02/2025 20:17

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