Can we have a nice, kind supportive gowd we are in so much debt type thread?

[grumpypants]

One where we can just be noice and not scathing? I am just always doing little sums in my head, about when things will be cleared, etc. We have sooo much debt. Interest only mortgage, can't afford repayment at the mo. Credit card - bought rubbish house, paid for work with 'real' money, living expenses on cards. Loan, car loan, overdraft etc. It's about £35k unsecured. We pay 1,000 each month in debt. I am so shocked by how this happened, but there are no expensive shoes peeking out the wardrobe; it's a combo of poor choice, me giving up work due to ill child, and the house falling apart just after we moved in...anyone else? I am trying so hard to cut down, and to pay stuff off - one day I really want to enjoy the money dh and I earn.

The debt stuff will just gradually whittle away .

Hopefully will be back to work in 8 wks. Then at least my mum and dad wouldn't have to sub us all the time.

I think I recognise your name from SN posts? The DLA has made our lives easier as it has enabled us to fund the extras that he needs.

So if we all keep paying off our debts, when will be all be 'debt free' (excluding mortgage)

Ours will be 2016. That doesn't sound that bad actually.

Hi Ben - yes, I'm a sort of lurker on the SN board. Glad you are going back to work, hope it doesnt cost you too much (fuel, clothes etc).
I may look into DLA - think it would be easier to ring them and talk it through.
Not sure about debt free - we have 16k on cards, 15k loan (ends in 2017) and 7.5 k on overdraft excl mortgage. Plus a carloan which will be paid off in a cple of months, freeing up some cash. I think I am looking at paying off the smallest amounts first really, as psychologically i think that works for me, rather than doing it on costliest first iyswim? You are right - 2016 sounds good!

I hope I don't sound patronising but I think it's a really good start to know where you are and be paying off what debt you can. DP and I had separate finances until last year. I was supporting him financially through his PhD or so I thought, but it turned out he was over £10k in unsecured debt. Which nearly gave me a heart attack. When he started work last year I reviewed all his finances, took over most of his credit cards (I have a way better credit rating) and he pays half his salary to me, and I pay off the bills and debts. It's hard, we hardly ever go out, holiday at mine or his parents, no gym membership, cheap phone contracts etc but we know where we are and the debt is going.

I do hate the fact that we're renting, especially now I'm pg, but there is no way we can save for a deposit. But we're so much better than last year with DP keeping his head in the sand and just building up more and more debt...

Mine is 2016 too Smacka - November to be exact but I turn 40 in March 2017 so I'm happy with my free before 40 date. Then we can have a great holiday in 2017 to celebrate both dates :)

Grumpy You need this to work out the right order to pay off. The results can be astounding.

Ex-debt adviser here. Seriously get yourselves some advice. Go to cab or cccs or similar (not ones that charge though). If you have no assets/rent then you should go bankrupt. If you have a house you want to keep then explore trust deeds. If anyone wants specific advice can pm me.

heather not sure who you are advising to go bankrupt?? It could have long-standing problems for many people esp in terms of employment. Obviously for some people it is the right option but for many, not. Agree that CCCS/CAP/CAB/Payplan can be very helpful - again though any Debt Management Plan (DMP) can have big repercussions in terms of defaults......

I'm definitely not going to go bankrupt. We have never defaulted on any payments. We are in debt, but it is manageable with careful budgeting. It's hard going but we have a number of 'dates' to bear in mind:

£90 pcm loan for surgery completes in April 2012.
Childcare decreases in Sept 2012 when DS starts school.

We are at the 'worst' part, and it should get better from here on in.

Some good news after some ad for us! On Tuesday dh got told his hours were being cut.....again. Plus he found out he hadn't got a job he'd gone for. Anyway he rang about another job on Wednesday and I sent his cv to them. They called Thursday and had a long chat, he went in for an informal thing on Friday and yesterday they rang and offered him the job, , it's more money and less responsibility. Hopefully it means more towards getting rid of the debts!!!!

I also sent off letters for ppi claims and bank charges on Friday so have fingers crossed there too

Congratulations. That's brilliant news. Well done.

heather no offence, but I don't think telling people in debt and renting to go bankrupt is the best advice. Its kind of the last resort, particularly with the social and professional implications. I think most of us on here are considering or have taken advice, and certainly wouldn't rule it out. Likewise, we are not behind with anything, and there is light at the end of the tunnel. Just hard right now.
Congrats on dh's new job btw!

We also only have childcare til july! Woohoo!

Grumpy - once your childcare costs reduce, will you use the extra to service debts or something else?

Tomorrow I'm going to withdraw £150 from the cash machine. that money will have to Last for one week. it sounds like a lot but I think we will struggle to make it last. here's hoping!

Hi bumble glad u have an end point. I have noo idea how long it will take us; we seem to be standing still or going backwards at the moment. However, I know that I can clear my tiny (in relation to the 30k we owe) overdraft in feb, so bit pleased.
Re the childcare savings; we put 300 aside each month to pay for gas/electric (quarterly) and childcare so I will keep that going to try to have a cushion. Then if it builds up, pay a chunk off. If that makes sense.
How do you work out how long til its gone? We have 5 yrs on the loan, two months on the car, and no idea on the card or overdraft. I think we still need to absolutely stop buying anything unneccessary, but that is v hard.

What really keeps me awake at night is the mortgage. We pay 1200 each month, interest only. I really want to be on repayment but that would be 1900 as we are fixed til 2013.
As someone said, we are coping, but have nothing to show for the thousands gone or earned.

The way that I worked out how long it'll be before our debt is paid off is by taking the total amount divided by the amount we're paying off each month and then that Leaves 3 1/2 years before we'll be debt free. I think it might be a bit optimistic but here's hoping. We rent, so unlikely to be massively affected by increase rate changes. If our landlords try to increase the rent significantly, we have the 'luxury' of leaving.

I meant interest rate changes.

Oh ok, I might try that. I set the direct debit at a fixed amount just above the minimumm trouble is, we need to use the card after salary runs out esp at the moment with all the disasters.
Sounds like you are just gritting your teeth and getting on with it.

Mmm - that's tricky if you still need to use the card isn't it?

our debt is on the 0% barclaycard for 22 months. Could you shift some of the debt onto that then have a different card to spend on?

MSE has advice on which cards would be best?

Welcome Jajas; you're in good company. I'm just on the phone switching from BT to 'primus' - should save about £20pcm. Together with sky being ditched that should be about 50pcm saved.

I think we'll have to pay an early redemption charge to BT but honestly it'll be worth it in the long run.

Hi jajas - I'm finding this really helpful to dip into. Glad you have found us!
Feel free to chat; it iis really nice not to get judge (think we are all well aware of poor/unavaoidable choices). I'm hoping to just keep dipping in this year. smacka I did that a while ago - it feels a bit pointless in the face of all the debt, but actually its the odd 20 quid a month that will help, short of a lotto win!