Get me out of debt

[CleverQuacks]

I am in about £10,000 pounds of debt which is just spiralling out of control. I work full time and I am a single mum to 4 children so working more hours isn’t really an option. This weekend I have sat down and gone over my finances with a fine tooth comb. I spend far too much money on take aways and lunches at work so I am going to cut that out completely. What else can I do? I really need to get on top of things. In September my youngest son will be entitled to 30 hours at nursery so I will save some money there but I really want to tackle to debt and get it down. Any tips would be appreciated.

If you can post your income and expenditure we'd be better placed to help on areas to cut back.

Get help from citizens advice, but basically it's a 3 pronged attack. Maximise income, reduce outgoings and address the debt head on.

I recommend contacting Stepchange or Christians Against Poverty. Both are free and can help with debt management and the various options available to you. I received help from CAP and am now debt-free. It took a while and wasn't easy, but my debts were around £28,000 when I contacted them. Despite their name, they will not try and convert you or preach at you. I'm not religious myself, they were non-judgemental and kind. CAP UK | Help with debt

Generally they (and probably Stepchange) ask you for your priority debts (essentials like council tax and utilities) and other creditors and will help negotiate affordable repayments. I couldn't have done it without them. There's no shame in asking for help, plenty of us do these days.

Best wishes to you. x

You need to write down where every penny is going at the moment then it will be easy to see where you can cut back.

Work out exactly what you spend in all categories over a full year.

Then work out how to reduce everything to the bone. This will enable you to calculate how long it will take you to clear the debt - this will keep you motivated through the short term pain.

If possible, plan some savings into your budget. Enough to cover emergency boiler repairs, car probs.etc.

What was the average you were spending on takeaways/work lunches?? I'd put that straight onto debt each month now you've decided to stop that altogether.
Don't budget too tightly where it's not maintainable but each week of you have say 100 budget for food, and spend 87 pay the rest straight to debt. That way olit was there if you needed it but it's allocated else where if it's not .

contact your phone/internet provider and see what options (including loyalty offers) are available.
double check your credit card to see if you have any monthly ongoing/forgot to cancel fees.

I echo PP contacting step-change, now you have a clear goal. Time to put a plan in place, I suggest don't go totally cold turkey cutting out ALL treats, you still want to live and enjoy life. Allow some take away money towards the end the month as a reward.

Dave Ramsey ( American and old school) baby steps to financial freedom is very simple and easy to follow.
Take charge, all will be ok

Thank you for all the replies. I have signed up to money saving expert and will check out the other things you mention. I have worked out a weekly budget which I can hopefully stick to.

Go through the moneysavingexpert.com get out of debt guide and do everything that's relevant to you.

https://www.moneysavingexpert.com/loans/debt-help-plan/

Eg if you can reduce the interest you pay, the debt comes down faster.

Stop the take aways and lunches.

cancel subscriptions to things like Netflix.

stop paying for school dinners (if you do) - you can so packed lunches cheaper.

batch cook.

sell some stuff you’ve got.

You have taken the first step. By realising that there is a problem and making a total of the debts, you can now face those head on. You have already identified that you are overspending on takeaways. Look through at least the last 3 months of bank statements to see if there are other categories in which you overspend.
From now on, track every penny. That £1 for a school/nursery fundraising/charity event, the quickly grab something from a shop because you ran out, everything. You may not find other categories of spending where you can reduce what you spend but you will have a tighter control of where money is going, so you will get better at predicting what will happen and thus create a cash flow plan for the month ahead.

I did the Ramsey plan and then discovered Meaningful Money and other UK podcasters/Youtubers. When you are taking an active interest in your finances you will search out information, and learn more.

Emergency Fund - you will have things that happen which are unexpected. You will not be perfect at cash flow planning, it can take months to get the budget going smoothly and even then something can take you by surprise. Have a financial cushion so you do not take out debt. Dave Ramsey says that you cannot dig yourself out of a hole if you are still digging at the bottom. By which he means, you have to stop using debt, and start filling your hole (the debt) from whatever income you can get.