How much debt are you actually in?

[Dandylion1]

Paypal Credit? They have a credit card option.

Oh I never knew this!

 

[Lanavalentine]

Just mortgage, but it was a different story many years ago.

I got myself into trouble at uni. I had no help from my parents, and my loan paid my accomodation. Not much left over. I planned to get a part-time job, but it ended up taking me longer than I had expected.

In the meantime, I ended up blowing through emergency credit and my student overdraft in my first year. I’d love to say that was necessary to live, but it definitely wasn’t - lots of shopping trips and big nights out, basically. I came from quite a poor background compared to almost everyone else, and I definitely got intoxicated with spending in a way I hadn’t been able to before, without considering the consequences.

Even when I found a job and worked as much as humanly possible, I still never managed to get permanently out of the red until well after graduation. I just couldn’t make enough money to do that and live, and honestly, my attitude to it was quite shitty - I felt I deserved to spend my hard-earned cash on a new dress rather than making more than a minimum payment on my debt.

With hindsight I learnt a lot of important lessons but I really was an idiot at the time. Eventually this sunk in and I sorted myself out. My life is so different now, but I’ve never forgotten the panic of coming out of work to five missed calls and voicemails on my phone and knowing before I even listen that it’s the bank chasing some debt repayment, or my mum calling to tell me I had several urgent letters from the credit card company waiting for me at home.

 

[Sooverthat]

If you are struggling and have the 'fear' e.g scared of the phone, the postman, any knock at the door then i urge you to seek help. I remember the day i phoned Stepchange (charity - dont have to pay them) as i was in such a mess and terrified. I was humilated and ashamed and cried on the phone with them for over an hour. I had become a single parent and the money had not gone on luxuries but just living but i had gotten to a point that i couldnt meet even the minimum payments.

They were brilliant. They go through your budget realistically and then take over and in many cases get the creditors to freeze the interest. Yes you won't be able to get credit for at least 6 years ( i think) but the payments you agree with them are also realistic. You pay your direct debit to them and then they pay your creditors. You can change it as your circumstances change and you will have an annual review.

The night i did it was the first time i slept in about 7 years. I have now been on it about 8 years and the end is in sight. I had to learn to buy what we needed and not what I wanted and it was HARD but I will never allow myself to have credit again, even if i can/could get it as i know myself and know it is too much of a temptation and i cannot manage it. (no matter how much i may think that i can)

They will talk you through the best solution and for me it was a Debt Management plan rather than IVA, bancruptcy etc. Make sure you go via a charity though and not one of the debt solutions that charge you. Stepchange was the only charity one at the time and was backed by the goverment. I am not sure if there are others.

Credit to step change they helped me out of debt too. Also Martin Lewis budget planner really helped

 

[Zenchick101]

This thread has been an eye opener for me. I’m in a terrible situation at the moment, I’m I’m about £8000 of debt at 23 years old. Was very stupid with money when I got my first “proper” job and took out payday loans, credit cards etc. It just spiralled and spiralled and got even worse when I had a bereavement In my family last year. I live in constant fear every single day, to the point where I can never relax because I’m so scared. I’m scared when somebody knocks on the door, when letters come through my door, when the phone rings. And the worst thing about it is in I work in finance and would lose my job if I got a CCJ or anything along those lines. I just don’t know what to do but I know I need to something before it gets a whole lot worse.



i feel like I’ve ruined my life before it’s even begun. my friends around me are buying their first house etc and I don’t feel like I’ll ever have that. It’s soul destroying to say the least

please please look up Dave Ramsey on youtube, his plan, his baby steps are made especially for people in debt who are overwhelmed. it will help

 

[BananaRama]

Start of 2018 finally admitted I was in so much debt. So ended up settling payment plans with most agencies. (Just had a new one come in yesterday. £1500! Taking me to court for a CCJ if I don’t pay up in 28days!)
2018 - owed £13,000 to different creditors
2020 - £2,400 left to pay (not including new debt!)
Had a few written off with help of a Facebook group and the 3 letter process.
Never had a credit card. Not worried about owning my home, due to inherit a house in next few years which I will then rent out myself as still live where I am. Don’t pay into a pension as of yet, I don’t feel like I adult very well

 

[ScrambledEggs]

From my teens unti my 30s I had loans and store cards ! Hate to think how much I spent
.I won 6k 9 years ago . It enabled me to clear my 1k overdraft and have extra maternity leave . Apart from a mortgage and car I owe nothing .
I claimed for ppi and a bank acc package charge & received 12k in total. It paid for much needed work on my house and a holiday . I'd been living off overdrafts until I was 37 ! Always got paid very well but I was stupid with money.

 

[idk2]

£1200 on 1 credit card - I do have the money to pay this but its 0% interest until 2021. This was only put on there recently when my car insurance renewed in May and I didn't want to pay it on debit card as if I lose my job, I would rather have actual money to fall back on than rely on credit, if that makes sense.

My problem is when I'm close to clearing my credit card and want to treat myself, I justify buying things and putting it on the CC as its 0% interest and it'll help my credit rating when I pay it off. It makes me feel like I'm not actually spending money. I'm glad I have the self awareness to check myself and stop myself from doing this too much though but its incredibly hard as I dont like spending my money but on a credit card, it doesnt feel like I am because its not leaving my current accounts

 

[Pinhead Larry]

I have my mortgage and student loan, I don't really count those though.

£2800 on my 0% interest Tesco credit card
£200 PayPal Credit
£300 to my Dad

£0 savings though

I pay my Dad £100 a month, £300 a month off the Tesco card and I'll pay the £200 PayPal off this month when I am paid. I am hoping to pay the Tesco card off in full by June and then I can start saving properly. It'll feel amazing to be £400 a month better off

 

[Izzyt88]

Absolutely! My electric bill has gone from
£180 ish to £350 for a 1 bedroom
Bungalow! So that extra money has to come from
Somewhere. I’m so careful only do washing at night, heating on as little as possible and I wash st the sink in cold water so the 1 hour at night I have hot water on is ready for my toddler. Honestly panicking at this point. Good luck with clearing your debts you can do this xx

I’m so sorry that you’re panicking and having to be so careful with your energy usage - washing in cold water at the sink in these temperatures must be horrible! It makes me so angry that you and so many others are struggling through no fault of your own, that energy price increase for a small property is ridiculous.

Like you say, the extra money to cover the increase in the cost of living has to come from somewhere, so extra debt is now another thing for us to worry about!

Things will get better but in the meantime you can rest assured you’re being a great mum by putting your toddler’s needs and comfort before your own xx

 

[givemethegossx]

£1500 which is my credit card and paypal credit, last year i got rid of my overdraft which i had for 6 long years and bank loan i had for 4 years so £1500 really doesn't bother me at all

 

[Cocopops91]

But what happens when you retire?

That’s why I pay into a private pension and invest in things that make me money! I invested the money I had for a deposit to make me more money, a house I live in wouldn’t make me money, I’d just die and the government would take it away from any next of kin I might have.

 

[Kermitthefrogswife]

I think I need to grow up in terms of my position, whilst it’s getting better, it’s far from ideal and sometimes I just cry and despair at what I’ve gotten myself into. If I could I would enter an IVA I think but my occupation prevents me from doing so. It will get better though

My bank keep sending me messages to upgrade my account where there is an option for an overdraft as my current acc is a basic one - i have refused it as i don't want one.

I dislike this as they make you feel, or me at least, like I should do it or that I’m ‘entitled’. It’s poor on their part in my opinion

 

[Orange Creme]

Age 38
No credit cards
£148k mortgage
£50,000 help to buy
No overdraft
I lease my car

 

[charlie6578]

My goal for 2023 is to get debt free! I have £1500 on my over draft, about £200 on my credit card, £250 on PayPal Credit and £150 on my Very account.

I have paid a good chunk of my over draft off and I was paying £100s a month to the likes of Klarna, it makes me feel sick the amount of money I’d spend on clothes to wear them once and give them away.

I also have a car on finance and a student loan but see then more as a monthly bill when it comes out my account.

 

[Casperron]

Me and my child wouldn’t have survived if I didn’t get into debt

 

[Wifo1976]

Mortgage and husbands car finance debt currently. I had debt when I was younger and lived at home. Racked up over £1500 on credit and store cards at a time when everyone was out having fun - I stayed in or drove my mates everywhere and cleared it. I have a real spending addiction still and agree Instagram fuels it, but I never go in debt for it. My husband is frugal but we are lucky that he has made some wise choices and we are comfortable. I know we are lucky when I look at some of my friends. We both have good incomes and one son, but every day I do honestly understand that we are very lucky.

 

[Chocolate Caramel Brownie]

I’ve contacted uc and got an appointment with them, told work I’m going back beginning of March I just need to find a nursery do you know how to get help with Nursery costs? It really is hopefully I’ll get every thing sorted by next week xxx

I’ve contacted uc and got an appointment with them, told work I’m going back beginning of March I just need to find a nursery do you know how to get help with Nursery costs? It really is hopefully I’ll get every thing sorted by next week xxx

When I had my appointment they calculated it all on the gov website. I earn £26k and get around £600 paid of a total of £1000 towards my childcare so it will defiantly help me. This is due to me being a single parent though. I cannot stay at home, I need to work so anything is better than nothing. Good luck x

 

[TheWitchIsBack]

late to this so apologies if I have got the wrong end of the stick but if you are on a DMP or thinking of entering a DMP with funds for a deposit on a property ready to go, why are you not paying off your debt with the deposit money? Before taking on more debt? If you are entering a DMP I’d say goodbye to any chances of a mortgage (even if you’d easily afford it) my DMP Killed me for years. Couldn’t get an Argos card let alone anything else

Argos cards and other store cards are usually administered by a subsidiary of a major high street bank so having any sort of recent DMP, IVA or default will make it near impossible to be accepted for anything like that. You’ll start to get accepted for credit cards that deal with poorer credit like newday aqua/marbles/Vanquis etc first then after a few years potentially a store card.

Mortgages are different as there are specialist lenders out there who deal specifically with adverse credit such as active debt management plans. It’s also easier to get a mortgage than unsecured borrowing in this sort of situation because there’s the additional security of the borrowing being levied against a property. A mortgage can be obtained 12 months after a DMP has been set up providing it has been satisfactorily managed.

 

[Doingitforthegram]

About £130k on a mortgage and £50k help to buy. No other debt but the help to buy is a bit of a regret.

Why do you regret the help to buy?

 

[FakeSmile]

I’m 29, married with 2 children (aged almost 3 and almost 1) and another on the way.

I have £10,000 left on a personal loan (from our wedding and moving house), £4,000 across 2 credit cards and a £2,000 overdraft. We also owe a couple of people about £6,500 in total. I have a car on finance too.

Our situation has got as bad as it has due to spending all of our savings on rent when I was on maternity leave the first time around and then I got pregnant unexpectedly with our second quite quickly before we could save more (I only went back part time after 5 months off). This third pregnancy has been an even bigger surprise so we are basically screwed!!!