This wasn't good advice, was it?

[applegrumble]

DH and I don't have much money right now. We're managing okay: paying off some debts that aren't growing (got a fixed low rate loan that ends in 2021 and some credit card debt on an 0% deal until 2017) and managing to keep afloat but I'm currently getting very anxious and panicky about money.

I keep worrying about being in debt even though it's not problem debt and it's very well managed - don't need an IVA or anything and wouldn't consider it as I have a spotless payment record. We are both self-employed, I've been refused income protection due to a serious illness and have no family support so it seems unwise to destroy my ability to get credit in the future when we've got no other safety net.

Savings would be a safety net but we've not got much, just a small fund for household emergencies. And I keep guilt tripping myself because I had a breakdown a few years ago and used up some savings paying for much-needed therapy that I couldn't get on the NHS.

I spoke to someone from a charity today. I thought they might say: these aren't problem debts, you're doing okay, this is anxiety and not a crisis, just keep on budgeting carefully and you're going to work it out. Just wanted some reassurance.

Instead they told me that I am too attached to the idea of my credit rating and that sometimes we obsess about planning for a crisis and don't realise we are in a crisis now. I thought the crisis was with my state of mind, not my actual finances - I thought I was just suffering from anxiety!

They said I might need to let go of the idea of keeping my credit rating. This has completely thrown me for a loop. I really needed to hear that I was doing okay! My anxiety has now gone through the roof!

Am I right in thinking that as my debt isn't growing I just need to keep on keeping on? Or am I stupid to want to keep my credit rating? I have just totally lost confidence now.

I have no idea as even though I thought I had paid my debts off my credit rating went down.

If you are managing and have a financial plan, fantastic.

If your debts are not growing, fantastic.

I think she's talking shit.

Thank you. I think maybe I didn't articulate well enough that the panic and worry is in my head and the actual situation isn't so bad, I just can't stop worrying about it...

How much do you owe. How much is your income

It's probably more that.

Your credit rating can't be that bad if they have given you a loan to consolidate. They won't give me one.

Have you tried noddle? They seem to be free and accurate.

Owe 7k on the loan and 6k on credit cards. Currently paying around £175 a month in repayments. Income fluctuates but we can manage the payments.

Not seen doddle before, will check it out thank you.

That level of debt is nothing. Relax, bodge on with the payments. Nobody is banging on your door so it's fine. Money is just numbers on a screen.

Nobody can take your health. The rest is merely logistics

I think you are being sensible- you have debts with low or zero interest and are paying them off. I don't think you should worry about what this person said.

Thank you, appreciate that - they really freaked me out.

I agree up to a point with Monkey. It's not ideal but not terrible either and you are totally aware of the situation which is an improvement on many many people in debt. Keep on keeping on. She was talking crap in my view. Emergency money is vital, especially if you are anxious by default. I think you are wise to try and keep your credit score up.

Check out YNAB, and it's forums!! Excellent money advice. Honestly it's saved my sanity. Just have a look and a read, I read loads before finally buying the budgeting tool.

Well....it depends.

You have 6k on a 0% deal ending in 2017.
6000 ÷ 175 = 2 years 10 months to pay off, so even if you were only paying off the CC (which you aren't) it won't be paid off by the time your 0% finishes.

Similarly, you have 7k of loans. Which would take 3 years 4 months to pay off at a rate of 175 per month. But your loan term is 6 years. 7000 ÷ 72 (6 x 12) = £97 per month.

So if your payments are split at 100 loan/ 75 CC, it means that you'll have only paid £1800 of your CC by the time your 2 year 0% is finished, so you'll have a £4200 balance to transfer.

By the time your loan is paid off, you'd have your credit card debt down to £600, then if you paid £175 per month you'd have it gone around 4 months later. So total time to pay off the credit card, assuming you manage to stay on 0% deals, would be 6 years 4 months.

That means that you'll need to find 0% deals for a further 4.5 years after your current 0% deal ends.

Massive assumptions have been made, but I'm really saying that the charity has a point.

I have YNAB! It has helped a lot - budgeting so much more effectively now.

Currently paying off the minimum on the credit card debt - it's on an MBNA Fluid card. But have a Barclaycard I'm not currently using that does fixed-rate balance transfers so if I can't get another 0% deal I know I can shift the balance to another fixed-rate deal and not have it start snowballing in size.

It's not ideal but hindsight is a fine thing huh.

I've only just realised that about the Barclaycard, which has helped with the anxiety. I'm not screwed quite yet...

Thanks all.