Bad credit house move debt

[Heatwavy]

I have the worst credit. Ive always been bad with money.
Im in 30's have a young child. Was given a property through inheritance luckily by grandma.
This is the situation.
20k debt
Flats worth about 200k
Bad credit so cant remortgage to release some money to clear debt
On very low income.

Does anyone have any ideas?

Really on a mission to get back on track financially.

I want to pay off debt and start rebuilding credit. I know i have no housing costs but there is ground rent and service charge and my other outgoings are so high. Ive got no frivolous expenses. And reduced outgoings as much as poss.

Ideally a lower monthly payment would help me out so much.

Well there are generally only two solutions to debt, spend less or earn more. Dont consolidate!

I agree - do not consolidate the debt. If you keep failing to address your finances, then your debt will increase and before you know it you'll have a charge against your home as a result.

I realised in my thirties that 'being bad with money' was my responsibility to sort out. Whilst it's easy to say spend less, you need to radically change your approach to finances.

I would thoroughly recommend getting YNAB (You Need A Budget). It's budgeting software and it's revolutionised my life. Have a look at the website. There are so many resources to get started and to clear debt. I started using it about five years ago and it's turned my life around. I have no debt, savings into 5 figures and a whole new approach to money. I'm almost evangelical about YNAB and urge anyone who's bad with money to try it.

You need to look at your high outgoings and be ruthless. You are 'asset rich and cash poor' - a tricky one to tackle. Cut your outgoings and see if you can increase your income in any way. Good luck.

I once consolidated a small amount of credit card debt into a loan and did that classic thing of running up the cards again even though I swore I wouldn't... it's like i have a mental idea of a certain amount of credit card debt that is ok (2-3k) and above that I get twitchy and feel uncomfortable, so I just ran it up again to my psychological limit. I then had the loan repayment PLUS the credit card payments and less money from my salary for the credit cards. I call them 'double debt loans' now.

Amazing advice thank you all :-)

@DappledOliveGroves will def try that thank you xx

There is a supportive talk forum called Debt Free Wannabe on Money Saving Expert. Lots of advice on there from experts.

Could you sell and buy somewhere cheaper? Use the remaining cash to clear your debts

Obviously this only works if the flat isn't already at the lower end of the market

You may have debt but you have a decent asset and you could take out a small mortgage on the property to clear debts.

Depends on a few things,

How are you going to change your attitude towards debt? MUnro do an online banking that helps you save for big ticket expenses and day to day outgoings
The best way is to check your balances daily and stop hiding from the numbers.
Take control over the money so you don’t get overwhelmed.

Get a better job or parting work? Even 4 hours on a Saturday could bring in £200 plus a month - Shop work or bar work

Are you crafty? Could you make things for a Christmas market?

Sell items you don’t need

All the pennies add up and can go towards the debt