Is there any way out of debt?

[Glastogirl]

Even when I get paid I don't even come close to getting out of my overdraft.

I know I need to stop spending money but my outgoings only leave around £200 free a month (before food shopping etc)

Please give me some advice or point me towards somewhere that can help.

Who are the debts to?

If they're unsecured then you could stop paying and negotiate cheaper payments? If you contact a free debt charity like cccs they could advise.

Once it gets to the stage where you can't really afford to live then it's likely that the amount you have to keep would go up if they took you to court. There are many people approaching bankruptcy or ivas who have more money once it goes through a debt charity.

Good luck

If you have debts so high that they are causing you serious problems then please seek advice from one of the free debt advisory services in the first instance. For example, Citizens Advice Bureau or CCCS.

Is your debt solely an overdraft or do you have cards, loans or HP on top? Are you single or do you live with a partner? Are you claiming any benefits that you may be entitled to?

I typed a reply on the new mobile app and it didn't post!

All my debts are to my bank (overdraft and credit card with my bank).

I'm not entitled to any benefits. I have to renegotiate my mortgage next August so need to get straight before that!

Overdrafts and credit cards charge some of the highest rates on the market and the interest you are paying will eat up a large amount of cash.

Are you paying a decent chunk off your credit card/OD each month or just the minimum? Are you adding to the debt each month - is it increasing? Have you gone through your outgoings ruthlessly and worked out where you could cut back? Been on comparison sites to get a better deal on utilities etc?

If your income falls a long way short of what you need each month to keep a roof over your head and bring your debts down at the same time then you need to get expert advice urgently rather than trying to muddle through.

You could join us on the debt support thread. Good info and advice over there.

I'm a fan of the Dave Ramsey method. If you google him you should see his plan. He's also got a free app that streams his radio show.

I'm a complete convert.

Good luck!

As others have said, get advice.

There are many ways to spend less, or give up things which you can manage without.

There are some ways to make the most of your assets, put to work things which you are not using.

There may be ways you can earn more.

Don't go to money lenders.

OP
Yes, there are most definitely ways out of debt
the banks will NEVER tell you the tricks as its not in their interest.

If you have any sort of card / store / unsecured debt you need to switch the direct debit into a standing order for £5 more an you paid last month.
Have a look at my spreadsheets (link in the big debt thread)
that simple move changes the repayment period from 18 to 2 years.

Then you need to look at your spending from a zero base
what do you NEED as against what do you want

no more week nogh booze
no more takeaways
eat out once a month
no new clothes for a month
eat out of the store cupboards two days a week

it works
the lenders will hate you but you will llove yourself

Payplan helped us enormously. 6 years in a debt management plan and we are now back on track.

Sorry to hijack but talkinpeace can I ask something ? I've looked at the spreadsheets etc but I don't understand why a standing order is better than a direct debit? Surely it's the same thing - if you choose the date of the direct debit the same way as with the standing order? Can you explain it to me like I am an idiot :)

At the moment I have a credit card on 0% interest and I pay it when I receive the statement - I don't have a direct debit etc because some months I pay more than others. That's okay isn't it? Especially as I an on 0% and switch regularly. .. confused!

try contacting the charity, stepchange.

Fairy
If you are on 0% interest then it does not make much difference
because you are driving down holes in the capital
BUT
if there is any interest being charged,
keeping the payment at £105 rather than letting it drop down with the balance can only cut into the capital ....
pup some random numbers into the spreadsheets and scroll down : I've deliberately got the hundreds of rows showing so you can see the balance of capital / interest

banks make money by lending to people who cannot repay promptly

they hate people like me who can spend £10k in a month on a card and clear the lot the day before any interest comes due (in fact they tried to delay my payments to trigger interest so I had to threaten the ombudaman )

Another charity is CAP - please contact one of them and let them help you!

Do you pay the minimum repayment on your credit card or more? If it is just the minimum set up a direct debit for a fixed amount each month. Say your mr is £180 a month, set it to £185, you won't notice that extra fiver missing. It will all add up. Any months your feeling a bit more flushed, you can transfer it over to the card.

Any extra sums I receive I pay onto my credit card. For example, if i get cash back on purchases, the cashback goes towards my credit card, even if it is only 10p.

Have a change jar. It will quickly add up and is useful for emergencies.

And spend 10 minutes when you are paid and budget. A budget has seriously reigned in my spending. I still have a lot of debt but it is slowly getting paid off and I should be debt free in about18 months.

Thank you very much..I understand it now.

Thank you everyone.

if you are in debt you stop eating out and you stop buying new clothes. Very unlikely you need any.

there IS a way out, there is support and it can be done. Good luck!