got myself in debt and very cross about it

[careergirl]

Managed to accumulate £6000 of debt across two bank loans and a credit card how could I be so stupid?
Only consolation:
I am setting up a consolidation loan. This will reduce my monthly debt payments and be paid off in four years.
I can make overpayments so may be able to do this more quickly
I have cut up the credit card. No more.
I can start to build up my savings. Which are pretty poor but am putting away between £170 and £200 p. m now got more of a handle on things.

Bangs head on wall. Why did I do it?

Credit's been easy to get hold of, cost of living is increasing and there's lots of other things to buy that we can easily convince ourselves we need besides. No point crying over spilt milk, however... Main thing is to have a plan to pay it back, monitor your spending, keep to a strict budget and learn from your mistakes. All of which you're doing.

BTW... with savings paying 2% or 3% interest and loans costing far more, don't build up too much savings while you have debts because it's a bad use of your money. A few hundred in 'rainy day' money for emergencies is enough.

Good luck

It's easily done careergirl. Don't beat yourself up about it - the important thing is you've got a handle on it and from now on your debt is only going to decrease.

Agree with cognito re savings. You're far better off hammering down your debt with that money than putting it in savings. The quicker you pay off the debt the less interest you'll have to pay...and once it's paid off you're savings can really take off.

Good luck with it all x

It sounds like you're doing a good job of avoiding the consolidation loan trap, where you think you've got your debt under control but end up just accumulating more because the consolidation loan (psychologically) ceases to be a debt and is just another monthly outgoing that you can afford without too much trouble.

In a weird way, therefore, it's better for the loan to hurt - make those overpayments, maybe set yourself a more challenging target to have the loan paid off.

You're also doing the right thing in wondering how it happened. It genuinely is very easy, so you need to watch yourself for any falling back into old ways. Awareness is the key, though, so you're on track.

I find You Need a Budget incredibly helpful. You can browse through the videos to understand the method without needing to buy the software - it's well worth a look.

Btw as you already have your debt in one place, you might find the idea of the debt snowflake helpful - you literally pay off a few quid every day or every week.

thanks feel a teeny bit better
the credit card is in tiny bits has been well chopped up
the reason for having a few bob in savings is because the house is ageing and always seems to need a job doing - the fencing will need doing next year and a bit of decorating. But you're right if there is money just sat there doing nothing that I don't need I will throw it at the debt. Also any overtime I pick up at work I will use that cash to make overpayments.
Luckily once I've paid the bills and given myself some money for essentials - you know, travel, the odd birthday present, a small treat, etc I do have approx £200 I can put away. That's why I am so vexed. I just shouldn't be in this position and am. Big lesson learned.

Made some good steps. Changed the energy supplier too so should be paying less. Mobile is PAYG £10 a month is plenty
With luck may be able to pay this off in three years rather than four.

Yup, emergency fund very important to avoid having to go further into debt for house stuff that just can't wait. Likewise planning for the yearly expenses like the TV license that otherwise come around and, whilst not catastrophic in their own right, can throw your careful plans completely out of kilter.