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Original poster

Got myself into debt, please help me sort myself out!

24 replies

SoAshamedOfSituation · 15/02/2008 20:23

I can't tell my parents as they are moving home soon and they will feel obliged to help me and I dont want them too, they have done so much for me and I just couldn't.

If I give you the basics could you help??

I only get £136 a week and i have these catalouges to pay off...

1 - £363
2 - £165
3- £369 (but first payment isn't until May)

Obviously the minimum payments are only £9 each a month but that way ill never get rid!

I also pay £10 a week for Park christmas vouchers.

I feel like shit, I didnt realise it was this bad until I wrote it all down.

Ive been saving for something special for my sons, something Ive wanted to get them for ages and have £250 and feel like I should pay something off, but I really want to get them the item. (not something daft like a playstation )

DH can't help as he pays everything else including loan payments so he doesnt have anyting spare at the end of the month.

OP posts:
Original poster
SoAshamedOfSituation · 15/02/2008 20:30

DH IS SO STRESSED OVER MONEY AT THE MOMENT TOO, I DONT WANT TO BURDEN HIM FURTHER

OP posts:
nappymadmummy · 15/02/2008 20:31

As well as the amounts you owe it would be useful to know what the interest rates are on each catologue account. Obviously it makes sense to pay off the one with the highest interest rate first iyswim.

As for the £250, do you sons really need whatever it is you're thinking of buying? Could you get them something cheaper or perhaps give them money towards it (not sure how old they are so may not really be an option)

nappymadmummy · 15/02/2008 20:32

Oh and try not to stress I'm sure you can figure something out.

Also is the £136 spare money each week or do you have stuff to buy out of that like bills, food, etc.???

frogs · 15/02/2008 20:36

Hi, didn't want you to feel ignored, but I don't really understand how catalogue payments work. Hopefully someone else will be along in a minute.

You could also try posting on a more specialised website: The Motley Fool have a Dealing with Debt discussion board, and Moneysavingexpert have loads of knowledgeable people as well.

Personally, if you need to pay off a debt, it's best to pay it off rather than buy new stuff, however much you might feel you want it.

bookwormmum · 15/02/2008 20:38

Could you not pay of debt two with part of the £250 and keep the rest towards your son's gifts?

Then you have two debts to deal with, and only one to pay for the next four months. You could pay £18pm on one catalogue then which should shave a few months off the other end. Are the catalogues interest free?

Also, try not to buy from catalogues (easy to say, I know) since they tend to be pricier than buying the goods from elsewhere. Shop around on the internet.

LIZS · 15/02/2008 20:41

Pay off part of the debt , it will be better financially long term and the kids are unlikely to fully appreciate a £250 present. What does £136 cover btw ? Can you put some more short term towards the paying off the capital rather than just servicing the debt ad infinitum.

Original poster
SoAshamedOfSituation · 15/02/2008 20:46

£136 is my money total,

that includes shopping, £10 park & nappies

OP posts:
nappymadmummy · 15/02/2008 20:50

Right well first of all I'd sit down and work out how much your food bill is each week and how much you spend on nappies per week. That way (if you add them together and add on the £10 park) you'll know exactly what you're spending each week and therefore how much you can pay off your debts each month.

I'd agree that you should pay off debts rather than spend £250 on a gift for your sons.

The debt you should pay it off is whichever has the highest interest rate.

nappymadmummy · 15/02/2008 20:51

Oh and look at ways of reducing your food bill too - can you meal plan so there's less wasted?

LIZS · 15/02/2008 20:55

You need to be very strict with the shopping - make a list by meal and don't buy non essentials - and try to accumulate as much as possible to pay some off. Do you need to do Park for now ? Basically you are most likely paying out far more in interest on the debts than what you are accumulating in value on savings and Park.

You need to shift the balance and the only way to do that is to put mroe towards the amount owed. Is there really no way dh could help - do you smoke, drink , go out , pay baby sitters ?

padboz · 15/02/2008 21:07

first thing to do is to accept the situation - you dont have big problem, you have a job to to. Thats to pay this lot off as fast as you can in the order of interest rates.
Second thing is to budget like mad. Every penny for the foreseable future needs to be accounted for. But budget for a little bit of fun too or you'll lose it.
Do lots of nappy free time
Mainly - if you are going in the right direction then you're going in the right direction and thats great.

Original poster
SoAshamedOfSituation · 15/02/2008 21:33

Ive just paid £150 off catalouge 1 out of my 'kids item fund'

I would pay off the other £100 but £50 it in here in cash so will need to put it in the bank firsta nd I want to work out my shopping budget before I pay the other £50 out of my bank, i dont want to be stranded for the whole week.

Im going to aim for a £50 a week shop.

plus £10 park

and £10 nappies & wipes.

so i will have £60 a weeek and i will pay off the 2 catalouges at £30 each per week, so £120 paid off EACH a month, better than £9 eh?

OP posts:
Original poster
SoAshamedOfSituation · 15/02/2008 21:43

Can I also ask, we are currently trying for another choild, do you think this debt is bad enough to pospone trying?

Part of me thinks 'yes, just sort this out first'

but then part of me thinks 'well it will be paid off by the time baby arrives and i have baby things from the other children'

?

OP posts:
Original poster
SoAshamedOfSituation · 15/02/2008 21:54

?

OP posts:
Dropdeadfred · 15/02/2008 22:00

You sound like you have a plan...if you can stick to it things will sort themselves out. Don't postpone trying for a baby..you never know how long it might take!

BITCAT · 15/02/2008 22:07

Could you or would you be prepared to work say for a few months to pay of debts...i don't know what your circumstances are!! I've been there with catalogues and i don't use them any more, it's so easy for them to get out of control without knowing it!! You could write to them and ask if they would be prepared to stop any interest on your accounts or contact your local CAB office which may be able to help with this. Then at least you would be able to get them paid off a little quicker!!

BITCAT · 15/02/2008 22:10

I would use the money you have saved also to pay off some debt and when you sorted then you can maybe think about getting it then..it would be much less stressful if you could get it paid!!

Original poster
SoAshamedOfSituation · 15/02/2008 23:31

Hiya bitcat

i have used £150 of it tonight to pay off the catalouge and will also use the other £100.

I cant work as both my children are underschool age and wages would go straight to childcare and I dont think I would earn any more than what I have now (no qualifications or skills).

I feel confident we can get on track well before christmas

OP posts:
tegan · 15/02/2008 23:46

Think yourself lucky you only have a small amount of debt.

We have had major run of bad luck and now owe about £5000 in cards and £1500 overdraft.

Original poster
SoAshamedOfSituation · 15/02/2008 23:48

That doesn't include over drafts (£550 each) or our £5000 loan

OP posts:
Original poster
SoAshamedOfSituation · 15/02/2008 23:49

But i dont mind having an overdraft TBH,

and my husband pays the loan and we are OK ont hat front.

It was just the catalouges that I was avoiding.

OP posts:
LIZS · 16/02/2008 00:58

Well done that should help. Does your dh pay back any more than just the minimum for interest on the loan . Running with a loan, an overdraft and debts is not a good place to be expecially with lo's and potentially another . Could you postpone the ttc at least until you are some way towards paying them off or there is a risk of it all getting further out of control ?

It would be worth a visit to CAB to see what they can suggest in the way of budgetting for all your debts (including od and loan )and maybe benefits should you work. You may be entitled to tax credits to cover part of childcare for example. Above all I hope you have now closed the catalogue accounts.

SarahTal · 28/03/2008 12:03

So sorry to hear about your situation, but please don't worry too much! I was in a lot more debt than you a few years ago & I have managed to come out the other side.

I went on a debt management plan with Gregory Pennington & they really helped me out. They were understanding and always explained everything really well. I also spent a lot of time on the Money Saving Expert forums too. Like frogs said, that really can help too, even if it's just to talk to someone who understands your situation.

All the best,
Sarah T

iheartdusty · 28/03/2008 14:28

Hi, I don't know Gregory pennington, but they would probably charge a fee for what they do, so that would be some of your money going to them instead of clearing the debts.

There are free advice services, maybe check those out first.

CAB do help, also
insolvency helpline

and

credit counselling service

the last one maybe worth approaching first

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