Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Help me with money anxiety

5 replies

AgentZ · 07/03/2024 17:00

Hi,

I’m currently in a state of huge debt and money anxiety and I need some perspective. Can someone please tell me that it will be okay, that I can get through it and that I’m not a complete failure of a person?

what can I do to get over the panic so that I can be proactive?

OP posts:
2dogsandabudgie · 07/03/2024 17:30

Make a list of all of your income and outgoings and how much you can afford each month to paying off the debt. Pay the debt with the highest interest rate off first. If it's credit cards can you change to a 0% interest rate, there's usually a fee but it works out cheaper if you have a large balance to pay.

DeedlessIndeed · 07/03/2024 17:43

Hey OP,

You are going to be okay!!!

I sometimes take a look at the personal finance boards on reddit and they are full of people who have gone from large amounts of debt (tens and tens of thousands of pounds) to in the clear. I got in a bit of debt in my early career (Approx. £5-6K). So, don't feel bad, you are not alone.

Is all of your debt with one provider? If not, make a list of all your debts. How much you have with each provider and what interest is being charged.

Then, take a look at "Snowballing" vs "Avalanching" methods of debt clearance which can help you tackle debts in the most cost effective way. Pick whatever you feel most comfortable with. Essentially, you make minimum repayments on all of your debts bar one. Put all your spare money into that one to really target clearing it. Once that is cleared, you'll have extra cash to target the next debt.

Remember, once you've cleared some debt, you may be eligible to open a 0% credit card. This could give you a bit more breathing space to transfer some high interest debt, and gives you more money each month to throw into clearing it.

If you cannot keep up with minimum repayments at all, contact step change for advice. They will go through your options with you.

Often it's acknowledging that you have a problem is the most uncomfortable stage. The rest won't feel so bad as you're taking positive steps to tackle the issue.

Dacadactyl · 07/03/2024 17:44

I'd recommend posting on the Money Saving Expert forum "Debt Free Wannabe" board.

Contact Step Change for advice.

Be proactive and get on top of it. Asking for help like this is the first step in getting it sorted.

Best of luck.

MrsMoastyToasty · 07/03/2024 17:44

You need to make a 3 pronged attack.

1.Maximise your income.

A.Overtime/better paid job.
B.Sell stuff
C.Check your tax code.
D. Check benefits entitlements

  1. Reduce your outgoings

A.Cancel subscriptions
B.Go on a water meter then use water saving devices.
C. Shop around for cheaper utilities, insurance etc
D. Identify the difference between WANT and NEED.

3Address your debts, getting help from CAB or a debt charity.

AgentZ · 07/03/2024 18:15

Thank you so much! That is all really helpful and when you see it written down in a plan it doesn’t look so bad.

OP posts:
New posts on this thread. Refresh page
Swipe left for the next trending thread