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Original poster

We are paralysed by debt - please can someone give me a run down on what we should be doing ..?

19 replies

josben · 22/05/2014 22:46

We are over £20,000 in debt - all money goes on mortgage, bills, and cc interest - am so low...

Please can someone help me by telling me, stage by stage what we can do to try and 'freeze' the debt so we as a family can have start to live normally again? :(

OP posts:
clam · 22/05/2014 22:52

Someone said on here recently that the moneysavingexpert website has some good ideas.

Cathycat · 22/05/2014 22:53

Go to the CAB. They may direct you towards getting a debt management plan. Don't leave it longer or it may get worse.

FiftyShadesOfGreen4205 · 22/05/2014 22:56

Call Stepchange.

I did, and it changed my life.

FiftyShadesOfGreen4205 · 22/05/2014 22:57

Ps: OP, pm me anytime

Minnieisthedevilmouse · 22/05/2014 22:59

You know what? More people are there than care to admit. You really aren't alone.

MrsWolowitz · 22/05/2014 23:00

This reply has been deleted

Message withdrawn at poster's request.

Original poster
josben · 22/05/2014 23:01

Thank you - I have just had a look at Step Change... I will ring them tomorrow - is the main option an IVA or can you agree a repayment plan with your credit card company without one?

OP posts:
FiftyShadesOfGreen4205 · 22/05/2014 23:08

It depends on whether you have much spare income left after essential purchases and bills. With a DMP, they work out what you can afford to pay and contact your creditors for you. In most cases creditors will freeze interest. The amount you pay back will be much more manageable and is just one monthly payment.

IVAs etc are a bit more complicated re paperwork but still a viable option for many.

Stepchange will be able to advise you based on what you tell them.

There's no need to panic or let debt smother you. This can a be worked out. I promise you the relief is amazing.

Linskibinski · 22/05/2014 23:08

45 grand in debt 4 years ago but now debt free. It's sooo hard especially the first year but so worth it in the end. I used payplan. I had a repayment plan. Fee free from beginning to end and all debts paid off. You can get out but please please don't do nothing. Just getting started makes you sleep better. You can do it and it gets easier every year. Good luck, hand here for holding. Thanks Wine

Original poster
josben · 22/05/2014 23:11

Fifty - Thank you for your post, it is just horrible at the moment , we really have hit a wall - credit cards that we were using to pay back other cards are max'd out and so its a bit desperate .... :(
I am trying to keep things in perspective but DH is very down about it all, we are looking at what we can do as quickly as possible - it has just spiralled :(

OP posts:
Original poster
josben · 22/05/2014 23:12

Thanks for your post linski - I feel a bit emotional tonight - post is much appreciated

OP posts:
FiftyShadesOfGreen4205 · 22/05/2014 23:19

I know how it feels. The knot in your stomach, can't enjoy life, constant anxiety?

No debt is fun, and the spiral is familiar. It's what happens to many people due to circumstances, including me. And I was never 'bad' with cash as such. It got to the stage where I was just making minimum payments each month and had nothing left. When I couldn't afford those I had to take action. From the first phone call I began to feel better. It took a few years but I'm now debt free. All paid up :o

Agree with the sentiment to absolutely under no circumstances ignore it. There are people who can help you and your creditors may surprise you with their compliance.

Stay positive. And let us know how the call goes tomorrow.

kazza446 · 22/05/2014 23:22

I've dealt with christians against poverty. Can't recommend them enough.

chasingstars · 22/05/2014 23:37

I can recommend Stepchange, I liked them as it's easier to do things over the phone than in person. You can fill in a section on the website before you phone them, and you get a reference no. so they can bring up your details rather than reading everything out on the phone (was easier for me as I had a loong list of creditors.)

I dealt with them two years ago, they were great and am now debt free and have a lot more disposable income now I'm not servicing debts. I was basically insolvent so had to file for bankruptcy, which is expensive, but the advantage is that it's over pretty quickly - debt repayment plans can go on for years in comparison. But if you have a mortgage an IVA/repayment may be better.

Nancyclancy · 27/05/2014 09:30

Please go to Stepchange. I was in your situation and finally rang them in 2008. I'm now debt free.
I so wished I'd phoned them sooner, they are fantastic!

TalkinPeace · 27/05/2014 12:14

OP
Come and join the big debt thread
(big in that the debts people are handling are humungous AND there are lots of posts)
We are a very supportive place full of ideas about how to take control of the debt, how to learn to live within your means and how to cope with the general shit that life throws at you.

First things first.
Convert all of your credit card payments to standing orders.
That way control lies.

Viviennemary · 27/05/2014 12:22

It depends on whether or not you can cut back on spending. Sometimes if your outgoings exceed your incomings for a period of time it's very difficult not to build up debt especially if there are no areas you can cut back on. I agree with calling the CAB as a starting point.

Ememem84 · 01/06/2014 13:42

josben I've been in your situation. It was awful. It took me 2 years and a lot of scrimping to pay off my huge credit card debt. Dh didn't know about my debt until we wanted to take advantage of interest free financing on new kitchen. And we couldn't jointly. Because of my debt.

Upon fining our we had a huge row. And then worked out how to fix it.

We jointly budgeted. Dh (accountant) made me pay every single penny I had left after pay came in and paid mortgage bills on paying off debt. He took away credit cards. And if I wanted something had to ask for card. It was controlling and a bit humiliating. But I eventually got used to it and now have everything under control.

I made small differences. I emptied wardrobe and sold a lot on eBay and local websites. I put every penny towards clearing debt (including money I was given for birthdays and Christmases). Bonuses from work were used to pay off debt. I planned how I was going to spend every single penny. Scrimped and saved.

I finally became debt free on 26 January this year. And have now taken complete control of my money. I'm saving money again. Not spending unnecessarily. Still planning how I spend.

It was tough. There were times I felt like giving up completely. Times where I wanted to treat myself to something because I'd paid off x amount. Times where I hated dh because he was being so sensible.

But. I did it. And will never go trough that again.

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