We are £50k in debt, not inc mortgage ...

[hidingmynamesake]

NC
I'm doing low/no spend Jan (and every rnonth going forward)
Looking at a second job .. that will take me to a 55hour working week
Cutting back where we can
Paying off more than the monthly repayments where we can but within reason and certainly not ££ every month, we still need to live

.. but that is not going to make any significant differences in the short term. A second job could bring in net £400pcm, cutting back to save £2-£3 on things like cheaper non branded items, saving a few hundred a month from cutting back ... that is nothing in the scheme of £50k.

We need something like £10k winfalls to start throwing chunks at the debt. That is not going to happen. Slogging away, going without (literally) and paying off very small amounts at around £400-£500 extra a month is going to take YEARS.

Feeling so so so down

Have you spoken to step change? The debt charity? If not I really recommend giving them a call. My father in law was really struggling with his debt and they managed to sort out a plan for him.

Can you contact the companies where the debt is to sort out a payment plan that is manageable or contact Stepchange to see if they can help.

Do you have a clear picture of how this debt was accumulated? It’s important to understand where it came from, then you can implement changes and start taking action.

What is the debt? credit cards etc?

Do you want to give us a list of outgoings to see where you might be able to save? How are your debts spread? What caused them to be so high?

You can do this OP, I promise. It looks huge now but you can get there.

First question is how is the debt set out and if it’s on credit cards, are you still using them?

Not quite the same but I paid off £25k of my £35k in 4 years. I have £9900 left on a loan. I am a single parent and I threw everything I had at it. The £10k is still shooting to have but when I oook at where I came from, it’s huge.

Again, you can do this!!

The debt is credit cards and loans over a period of years. We can afford the monthly repayments but that will never clear it . and I want it gone, forever,

Is Step2 a debt management plan scheme ? we need to have good credit ratings to be able to move our mortgage when the terms ends and we need a new deal .. and we will need several deals over the mortgage life, until the mortgage term ends in 15 years time

What are you currently paying?

It it joint debt?

What is the debt against each person, and what are their annual earnings?

You are making a start but you do need to count those £2 because they add up. I do debt counselling and make number one advice is to set up a good spreadsheet so you can see where you are with incomes and all outgoings, get the highest interest debts prioritised and even if it’s just £20 extra it makes a difference. Write down what you are spending carefully. A few hundred does make that difference, it’s a mindset. Non branded products are an excellent starting point because you aren’t even going without, along with making a nice homemade meal that’s maybe a little more expensive rather than a takeaway. It’s several months since I’ve had a takeaway and they are rare anyway. Yes you have to live, but you need to get the mindset of someone who realises debt free is a better way

Is it worth looking to see if you can extend your mortgage term (hence reducing monthly repayments) to throw more at the debt?

@ForLoveNotMoney what an achievement, I am in awe of you. Huge WELL DONE 👋

it is credit cards and a loan, we don't even have the credit cards .. they are balance transfers zero interest deals and we bin the cards when they arrive. we have 1 card we use for emergencies only

I think if you can see any shrinkage in the amount as a positive, that will help. It must have been climbing for some time - have you reached a point already where it’s not increasing?

joint debt
It is nit increasing, I have a goal to pay off £10k this year - not sure how achievable that will be but I am giving it a bloody good go

I have all our finances on a s/sheet every month, I track every penny that goes out the door.

It just feels so daunting .. almost like a prison sentence with years ahead of us paying it off ..

So about £25k debt each? It’s a long shot but have you looked into an affordability complaint? Depending on your incomes lenders may have given you credit irresponsibly, for you to have that much debt.

It's a positive that you have interest free credit cards. At least that means that every penny you pay back is money off the actual debt ...not debt interest. Check that the interest free period isn't coming to an end soon. If one is near the end of the interest free period pay the minimum payment on the others and any extra you have on the one coming to an end. When you've paid that one off you can start paying more down on the others. One thing though ...don't be tempted by further interest free offers which you might be offered when your payments go down Only use these to transfer remaining balances onto another interest free account when a credit free offer runs out. 💐

Well, you’re right that a second job could see you cutting £4-5k off it. Another £5k off that would be bloody amazing. Are you likely to have any pay rise, however small, in your main job?

Is there any way you could do something drastic like sell one car (if you have two) or any expensive piece of sports equipment/ laptop/ jewelery or something to raise some extra money to throw at it?

Additionally you could sell some unwanted clothes or shoes on vinted?

Every bit will help. I know it seems so daunting now, but if you try to accept that the next few years will be a bit frugal, maybe once you get some momentum going with paying it off it will feel better.

£500 is 8 years. That isn't too bad- with your new £400 income add in £100 and make that an absolute priority. Any pay rises put the difference towards the debt. Any small wins, the two months you dont pay council tax put that money towards the debt. Agree to not presents for birthday/xmas with your partner and prioritise that.

You can't have it both ways you can't service the debt without making big sacrifices. It is what is it.

affordability complaint is a good shout @PinkFrogss

you have nothing to lose and something to gain

One thing I do as im fed up of utility companies holding onto my money, is give monthly meter readings. This is something you could do to make sure you're not in lots of credit in March. Any credit with water, gas and electric you can ask for back and pay towards the debt

snowballing debt is physiologically really good, as it off loads parts bit by bit
having a really good budget so you can pay off the debt and see the difference happening.

How old are you? I’d consider remortgaging and adding the debt to that, and increasing the mortgage term by 3-5 years.

Is there equity in your house? Can you release some money to pay off the debts and then pay a bit more on your mortgage?

There’s a guy on YouTube, I think his name is bradleyonabudget - he ended up with hundreds of thousands in student debt (USA) and he lives extremely frugally - you could definitely pick up some tips and tricks for saving money there. It’s quite fascinating actually!

Hi OP there are apps available that will break it all down and tell you which debts to target first to be debt free as early as possible. I used one called Debt Payoff Planner.

Good for you for taking hold of it and best of luck 🙏🏼

I am 52, there are 5 of us in the household. We have £300k left on the mortgage over 17 years. The debt is on 4 credit cards and 1 loan. DH buries his head in the sand, I am left to juggle/move it all for better deals. We both work FT, DH says he couldn't cope with a second job, so it would just be me with the second job ., if I get one as it would mean working nights as well as currently working days