Debt advice

[bluebunny123]

Hi all. I've recently got into a bit of debt.. not thousands but still more than I should have.

I owe about £950 to various buy now pay later shops. For reference my wage each month is roughly £1000 and I get a top up from universal credit although they're still deciding on the amount my household bills are £950 a month - the same as my debt

I know my position is not the worst and there are people far worse off, but having never dealt with debt before it is making me a bit anxious because I can't figure out the best way to pay it all off.

Any advice? How have you got out of debt previously? Thanks.

You need to wait and see how much money UC is going to pay you and then you can draw up an accurate budget. I can't see how you can do that until you know how much money you have coming in sorry.

@NotSuchASmugMarriedNow1 thanks for the reply. That was my thought too just didn't know if anyone had any advice to pre plan what I'm going to do. Thanks anyway

Spending diary to see where all your money is going and do a budget. Emergency savings are a must too

You need to approach it from 3 ways.
Maximise your income. Are you getting all your entitlements? Can you sell anything? Can you do overtime?
Reduce your expenditure. Look for the best deals on utilities, cancel subscriptions and look at where you waste money.
Address your debts. Get help from a free money advice charity (not a fee charging company).

@Cornishclio spending diary terrifies me  I'll give it a try though!

@MrsMoastyToasty I have got some bits I could sell. Can't do overtime unfortunately.
Might see if I can do a few odd jobs for people I know to try and get some money in.
Think I'm getting everything I'm entitled to but won't find out until universal credit make their minds up.

@bluebunny123 It can be enlightening to see just how much is spent on food/takeaways etc but it helps keep you disciplined. There are apps you can put on your phone.

@Cornishclio I will have a look for some apps then.. might be easier than remembering to write it all down

There is one called spending diary. If you bank with Santander they have their own one called wallet

Please take a trip to your local citizens advice and get debt help now before interest etc pushes this debt higher.

When shopping buy in season veg etc and MAKE yourself cook from scratch and not buy ready meals and buy own brand products.
Stop TV subscriptions that you don't need and use freeview instead.
Take packed lunch to work and not buy take away coffee or posh water.
The savings will soon add up and you can be debt free in a few months,don't be tempted again by cutting up your cards now.
If you do happen to get behind with payments always notify the Company concerned and let them know your position don't just leave it most are very helpful if you keep in touch with them.

@Cornishclio thanks will take a look!

@ivykaty44 can they help? What sort of thing do they do? Never been to them before

@abigailsnan I will start taking lunch to work.. definitely cheaper that way. Unfortunately I'm in a contract with sky so don't think I can cancel that yet. Everything else is basics. I'm trying not to get behind because I know that'll make the debt worse. I've been making the minimum payments and when I can afford more I pay it.

Blue
Yes they have debt help and budgeting help and the contract to help with UC and making sure your getting what your due

You need to address the debt balance. Paying minimum means you are servicing the debt but not reducing the amount owed, in fact it may rise especially on buy now pay later. If you speak to stepchange, cab or similar they will help you prioritise the debts and get interest frozen. However you do need to budget carefully and not use credit cards etc.

Look up Dave Ramsay.

Follow every step.

Also, have two bank accounts, one your paid into and your bills come out of. Ensure to the £ there is the right amount of money left in.

Food, travel and anything else, basically changeable amounts, have another account and card.

Never ever touch the "bills" account. Only ever buy things from the spending about.

Cut your bills down like, by having sim only contract. Cancel sky cancel Netflix, sell stuff on eBay, cancel gym, cancel glossy box ect.
and whatever is left pay towards debt, on top of minimum payments (which should be coming out your bills account anyway).

@ivykaty44 ok thanks for the advice will definitely contact them.

@LIZS I know it's no good to just make the minimum I've read that online.. will contact stepchange too.

@nancyjuice7 thanks for the advice will take a look.