Can we have a support thread for people who are massively in debt?

[Nerfmother]

Because you can't talk about it in real life? We owe 44k, reduced from 60k in a year. Not including mortgage.
It's so depressing.
Dh is determined to pay it off and so bankruptcy or plans isn't an option. I do think its doable, just hard hard hard.

Hello again. I have been rubbish at posting but I have been keeping up with the thread and I am so impressed at how well everyone is doing, and how clear headed you all sound.

We had a really good January (by our standards). Paid off 4% of the total debt and didn't use the credit cards at all. February is going to be much harder and I am already feeling a bit panicky about it (not even one day in ) but I'll keep on reading all your helpful posts and try to keep on track. Its so so easy to just think "Argh, this is too hard. Get the credit card out and make it all a bit easier by buying up all the bits and pieces that we Need Right Now. Most of those essential things I can actually buy in dribs and drabs over a few months, as and when we can afford them, but that is a totally new way of thinking for me

How long does your list and £25 need to last you Kitty?

Sorry to hear about the redundancy Fergus. I hope you can turn it into a positive for you and your family.

The list could do with lasting til next payday tbh, if I can do it which is 21st. I can make it up to £65 because I have £40 in my wedding savings. I'll be really sad to spend it but I've been given an extra shift and I've applied for a couple of other jobs so I guess I can always put it back.

The only problem we have is that I do need to buy milk/cheese etc as we get through it so easily. And bran flakes, pasta, meat. The rest is stuff I can buy when it's on offer.

Thanks all. I realise it's utterly ridiculous that we have 500k in equity and yes, we added most of that value to the house by renovating it (was also very lucky to have bought first property back in the 90s and it tripled in value so we had a lot to put down on this house too). But it just seems so unfair that we can't touch this equity without selling. The debts have pretty much broken us over the last 2/3 years - so much so that we left the country to start again and rid ourselves of the memories (some would call it running away!).
We know that it's completely our own fault for having these debts as we spent spent spent on the house - all I can say is thank goodness it is worth what it is now and ironically it's probably gone up in value in the last year, by the amount of what is on the blasted credit cards!
So, in the long run we will luckily be absolutely fine. I just hoped that the house could actually pay for itself through the high rental income.......
Dededum you are of course absolutely right - it's a thing which I now want rid of and life is far too short and all that. Got to live for today and the only way is selling.....
Thanks for your thoughts all, really appreciate this thread

Well done pixie.

Debtfull
I do genuinely understand your dilemma, because I've been there.

DH and I had one of the very first BTL mortgages (in November 1996)
we rented out our old house and bought this one on only one salary.
We were up to our eyeballs in debt - even getting a friend to take out a student loan he did not need to give us cash.

Every penny of "profit" we made on the rented out house was spent servicing our other debts.

So after two years we sold the old house and used that profit to clear ALL of our debts apart from the mortgage on this house.
That mortgage ends in September.

We have never been in debt since.

I would seriously suggest that you think about selling that house, realising the gain and then possibly buy another investment property out of what is left after you are debt free.
Painful, but a proper long term view.

xx TiP

Evening all,hope everyone is well? On phone so not easy to make individual comments...but welcome newbies,and well done us oldies for hanging in there

NSD Fri and Sat courtesy of freezer/cupboard contents...packed lunches and lasagne Fri, toast/porridge,sandwiches and sausage casserole Sat. Sun (today) has been spendy...£16 on motor oil (cheaper long term to buy biggest bottle and will do both cars)..£23 on lunch. It's our 7yr anniversary,lunch was cheaper than dinner, and I had money left from this weeks food budget. Need to do my sums tonight and report back with some numbers

Hiya. Really good until today - went to science museum and all the parkings changed so instead of free it was 16 quid, petrol for the week 66, lunch with kids 40 and gift shop 10. So, small nightmare and I was very cross about lunch but no time for sandwiches (should have been organised) and asd ds was just being a nightmare (usual when tired or hungry) so we had to weigh the balance in his favour rather than going off to search for a cheaper venue.

I think though, that it's like dieting - a general pattern rather than every day.

Nightmare Nerf,hate when places do that!

Ok...numbers for this week...£500 emergency fund remains intact envelopes ac is balanced new week food budget starts tomorrow so this weeks surplus (£16.22) is being transferred to CC1 after this post baby steps, baby steps...off to get gas/elec meter readings and update online then stocktake the fridge/freezer/cupboards and do this weeks meal plan!

So...gas/elec currently £196 in credit.Normally I'd let it sit til winter had been and gone,but it's been so mild! Should I ask for credit back? I'm on a fixed deal due to end in April...don't know if best to leave if it will let them see I don't need a huge hike based on my consumption ...

I've just changed to First from Scottish power. Set up a dd that seems reasonable and I've heard good things.
At least I've done food and fuel - no need to buy anything now

I'm Scottish Power for gas and elec. We're £73pm combined for 2 bed house fixed til April...plan on digging out bills and seeing if I can find cheaper from next month.

We've worked hard at trying not to consume too much energy. Heating and water on timer, water thermostat turned down to 55 degrees (and honestly do not notice the difference!), everything turned off when not in use (inc microwave and cooker...not paying for the clock to blink at me lol)...also interlined all the curtains and put reflectors behind all the radiators! Dec bill was cheapest winter bill ever,so hoping Jan will be similar!

Ooh reflectors. I must look into those.

Thank you TalkinPeace, appreciate hearing your story as you certainly seem to be an expert at getting out of debt! Yes, I know in my heart of hearts that it's the right thing to do and it gives me butterflies just imagining the feeling of actually picking up the phone to pay off those credit cards and not being in debt anymore. I just had this little hope though that we could pay them off without or before selling the house, so that the house has effectively paid for itself to be renovated. When I think logically though, it actually has as we've sat on it for a year and rented it out while it's increased in value!

We are very lucky (took a lot of bravery moving abroad though!) that we now live somewhere where property prices are literally about a quarter of that in the UK. So we will be able to own our own lovely home here and be very happy once the house is sold in the UK.

Now I've written it down, it almost feels quite easy actually! I think the hard part was making the decision to sell. Now that's done, we just get on and do it and start to enjoy life again. And thank goodness we now live somewhere where everyone shows you how to save money, not how to spend it! I know now that the pleasures in life don't have to cost much. Everyone on this thread is proof of that.

Good luck everyone else too and I'm enjoying all your money saving tips

Debtfull I know what you mean about the butterflies! I'm due some inheritance eventually and a portion of it is going to clear my debts (but I'm paying off bit by bit anyway so I have more inheritance money left over). That way I'll probably use about £2500 of it and then I can go get my dental treatments (private dentist - she's the only one who I can cope with) and the rest can pay for the wedding. Like clearing balances where we'll have put deposits down.

NSD today...packed lunches and sausage/mash from freezer for dinner.

Nerf, I got a roll of reflector strip from B&Q,can't recall the price,but one roll has done 6 radiators.

Meter readings submitted,if still in credit will ask for refund and pay to CC1...

So how is February looking for us all?

I've £500 DD coming of ac tomorrow to CC1...this is first I've budgeted straight from salary as opposed to just overpaying what I had left at end of month.

Feeling pretty confident...have £500 emergency fund, envelopes ac is balanced and have potential to shave some money off the 3 weeks of food budget. Have also made 3 extra payments to CC1 already this month...

I'm feeling a bit panicky about February tbh. I have all the DDs paid and about £500 left over to last me until the 25th but I have to buy some train tickets which will be about £140 and I am having a baby next month so I feel like there is about a million things that I need to buy between now and then. Ordinarily I would just reach for the credit card but I am determined to fight that feeling. £360 should be enough to last three weeks

Even just reading that back sounds ridiculous. I think I am just in a panic because I can envisage loads of unexpected expense with the baby and we have no safety net at all (apart from the bloody credit cards).

Awe Pixie,bless you x

Best advice I can give you is just relax and conserve your energy. You and baby Pixie are your priority now. Start a list of the things you 'think you need', I'll bet you'll manage just grand without it...worst case it may be something you can get 2nd hand or maybe even borrow ... if you feel a panic but coming on, share it with us and we'll either talk you out of it or come up with some cheaper alternatives

Big DD to CC1 left ac today...felt like a really big step lol just to keep on budget til 20th now!

Fiddling with my spreadsheet and I've officially paid off 1% of my starting debt including mortgage, or 83% not including mortgage! The latter is mostly due to getting rid of the overdraft and store card at the end of last year.

If I can keep making the £500 DD every month CC1 is due to be cleared by Dec!

Head is above the water for now. I think a DD got messed up but will have to ring them tomorrow probably unless I finish work early. Just to double check with them/let them know what's happened.

£20 spend for me today (budgeted) for DS Taekwon Do subs...dinner from freezer...and packed lunches.

Mum2Fergus
well done on the spreadsheet

it really, really is worth everybody quantifying exactly where they stand - wit brutal honesty and pessimism as then you can clear this debt and never have to be in that situation again.

Hello all. Well, I budgeted that we should have 850 left at the end of each month - that's for hair cuts, clothes, anything that's not bills, food or fuel. I've insisted dh keeps track of stuff and so far we are down to 600 left - this will go off a card. But the difference is I know where it has gone.