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Original poster

Just worked out how much we owe…

208 replies

EmbarrassedDebt · 17/10/2022 21:11

Sat with DH tonight as it’s a week till payday and we have nothing left, so started a spreadsheet for our income and outgoings we are broke like absolutely destitute

In doing this I’ve found out between us we owe

55k’s worth of debt no wonder we have no fucking money

credit cards stand around 17k

cars around 9k on one and 7k on the other (nearly £600 a month on car repayments)

we have 4 loans between us owing 18.5k (seriously didn’t know this)

and other random stuff on finance (shed, tv, sofa)

Dh earns around 40k and I’m on 35k

I literally have no idea what to do but seeing it all down on a spreadsheet make me feel sick.

so far I’ve started a new spreadsheet sheet with the amount owed on each credit card and the interest rate & looking at ways to start paying it down.

I am horrified 😞😞 I’ve been half heartedly for a new job and looking at a second job but now that is something really important on my list of things to do…

please no nasty comments I just needed to get this off my chest and then plan a way out of this mess.

randomly we both have reasonably good credit scores as well I check those tonight as well

OP posts:
JustFrustrated · 17/10/2022 21:13

Can you consolidate any?

Move any to interest free finance?

Bobbybobbins · 17/10/2022 21:14

Oh OP sorry to hear you are struggling. You have done the right thing by getting a sense of what you owe.

A second job could be a good source of income. It might be worth writing all your outgoings down to see where you could save. And maybe figure out which debts need priority - eg highest interest rates or end of loan term. I'm sure there are charities which can help with loan consolidation?

Dacadactyl · 17/10/2022 21:15

I would move your post to moneysavingexpert's Debt Free Wannabe forum board if i were you.

They will go through your outgoings with a fine tooth comb and give some great advice and support.

RosesAndHellebores · 17/10/2022 21:15

This reply has been deleted

Not in the spirit

Dacadactyl · 17/10/2022 21:17

Do you need 2 cars? And even if you do id be inclined to spend a lot less than 9k and 7k on them. Not sure how finance works on cars though, but if you get rid of one or get cheaper ones, itd be better.

toulet · 17/10/2022 21:18

There was a thread the other day, wondering how people funded their life styles. Oh dear.

How is that helpful?

nannynick · 17/10/2022 21:18

Great... you have acknowledged that there is a problem and you have discussed it and listed it out.

Dave Ramsey Baby Steps is what I used. A bit of adaption needed for in the UK but not a lot. It can be really useful to listen to the podcast daily, so you learn how the Baby Steps are applied to situations.

Baby Steps adapted for the UK:

Get in the habit of writing down everything you spend. When you know what you are spending money on you can create a budget and aim to reduce what you spend in certain categories.

Startuplife · 17/10/2022 21:18

Could you look at an interest free credit card or a very low interest loan as a way of consolidating the debt?

I had about £10k of debt across 3 credit cards at one point so I took out a loan with Sainsbury’s bank and paid off all of the credit cards with it and then cut them up. I know it would have been cheaper to transfer it onto an interest free credit card but at least with the loan it was a direct debit each month so I didn’t have to think about it and there was no temptation to keep spending.

Startuplife · 17/10/2022 21:20

Also second hand cars are very high in value at the moment. I put mine into WeBuyAnyCar the other day and they would have given me more than I have remaining on my finance agreement. If you can manage on one car it may be worth trying to get rid of one.

Original poster
EmbarrassedDebt · 17/10/2022 21:21

@RosesAndHellebores the loans were for moving being in rented and having to move 5 times in 4 years has been expensive, not just random spending thanks for you helpful input

I am looking at interest free credit cards and balance transfers.

sadly 2 cars are needed as we live rurally and dh and I work in opposite directions and school is around 8 miles away

OP posts:
Original poster
EmbarrassedDebt · 17/10/2022 21:22

I’d have to look into the agreements to see if we can trade in or swap or something

OP posts:
WorriedMum13 · 17/10/2022 21:22

We were in a very similar position 3/4 years ago, around £45k debt and earning roughly the same as you both. We consolidated into 2 large loans and managed to reduce to around £12k - within that time I managed 6 months maternity leave on SMP allowance.

It's so daunting to start with but I would start with consolidating and maybe look into interest free credit cards, as long as you are confident you wouldn't be tempted to add more debt.

Tootlingalong · 17/10/2022 21:23

Dacadactyl · 17/10/2022 21:15

I would move your post to moneysavingexpert's Debt Free Wannabe forum board if i were you.

They will go through your outgoings with a fine tooth comb and give some great advice and support.

I agree with this, they are a great bunch. Also do a Statement of Affairs (soa), the template is over on that board too. It's a lightbulb moment and once you know exactly where you're at, you'll be able to find a way through it. Good Luck!

Original poster
EmbarrassedDebt · 17/10/2022 21:23

Going to look into a consolidation loan as well

its so bloody scary seeing the figures in black and white

OP posts:
Rutland2022 · 17/10/2022 21:24

Wow. That is a lot relative to
income. I have sleepless nights over ours and it’s not like that (similar income).

How much is your mortgage borrowing though?

It sounds like you’ve made the first step though of organising it all. How did you not know about the loans though?

I have spreadsheets for everything and we always know exactly what we owe individually and combined and continually juggle it around to get the best deals. I tart card balances all the time and DH does match betting for extra income.

We have credit cards of £5k on 0% interest, a car lease and a PCP at £310pcm combined, £225k mortgage (£900pcm) on our house plus £160k (£460pcm) on BTL. DH has a small paypal credit balance (about £200). No loans at the moment and no store credit although we have had some in the past.

Our killer is nursery fees right now. So at least that is time limited. The credit cards will be in minimum payment for the foreseeable but we aren’t adding to it at least.

Original poster
EmbarrassedDebt · 17/10/2022 21:25

Our mobile phone contracts are £120 a month…the phones are 3 years old!!!!

I am guessing that DH didn’t swap to a sim only plan and just kept paying it 🤬

OP posts:
Riverlee · 17/10/2022 21:25

A loan interest loan may be another option. Move all your debt away from the (expensive) credit cards. Look:at your bank statements - are there any subscriptions you can cancel?

budget planner

This is useful to work out your income and expenditure.

LoveReallyHurtsWithoutLube · 17/10/2022 21:26

@RosesAndHellebores

blah blah blah, a load of other unhelpful shite you spouted, blah blah. Oh dear.

Bore off.

Riverlee · 17/10/2022 21:26

Well done on acknowledging your debt.

Bigslippers · 17/10/2022 21:26

You’ve done the best thing already by realising what you owe - so well done you have taken the hardest step.

Not much advice but been there and done it and the main thing is that you both have jobs so there is a way out

No more credit cards (unless for zero balance transfers)
Look at the rates and aim to pay off the highest interest rate first. Once paid use that monthly payment for the next one.. etc etc

Dont buy on credit. Get a large notebook and write everything down. I used to write down every payment payment made and running balance- because it was written down it sank in how fast I wanted it to get down to zero

you can do it - The stress debt can give is awful I didn’t have a holiday until it was paid off because my peace of mind was better than a holiday or something new and shiny.

usernamealreadytaken · 17/10/2022 21:26

EmbarrassedDebt · 17/10/2022 21:25

Our mobile phone contracts are £120 a month…the phones are 3 years old!!!!

I am guessing that DH didn’t swap to a sim only plan and just kept paying it 🤬

Bloody hell - look at Plusnet SIM only - £6 per month!

Reluctantadult · 17/10/2022 21:26

We got rid of a car and did Dave Ramsey's debt snowball and baby steps as pp said. You'll have to be strict to get back on top of it but you've got good incomes.

Dacadactyl · 17/10/2022 21:27

Thats really high for phones OP. If you are out of contract, move to sim only plans. We pay 30 pound a month for all 3 phones in this house.

Original poster
EmbarrassedDebt · 17/10/2022 21:28

Sadly we can’t get rid of the cars we literally live in the middle of no where the nearest bus stop is a 4 mile walk along country lanes I will however look at seeing if we can change the agreement or sell and get a cheaper run around.

OP posts:
Dacadactyl · 17/10/2022 21:30

A friend of mine has also cancelled netflix and sky, plus her and her husbands gym membership...so that she can cover her increased gas and electric bill.