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Debt - really can't believe the mess we are in

(82 Posts)
Nerfmother Sat 04-May-13 11:29:19

It all seemed so lovely when we got together but the combinations of two failed marriages, debt from first marriage, me leaving work for ages due to sick child, and lack of common sense means that on an income of about 75k we are unable to even do spontaneous trips to the cinema. Not looking for sympathy , but is anyone else. In a similar boat?

Nerfmother Fri 10-May-13 17:18:20

Weird that's kind of my plan before reading it. Maybe the paychological tactics will work better for me.

Murtette Fri 10-May-13 23:27:04

Nerf - when you say you chose the "smallest one", what do you mean? The one with the smallest amount to be paid off? Whilst I can understand the psychological benefit of knowing that one is done, it would be better if you could pay off the one with the highest interest rate first as that is the one costing you the most.

Xenia Sat 11-May-13 07:55:19

I think most debt advisers would say your list of priority should have at the top which organisation is likely to make you homeless first rather than trying to pick off paying off smaller ones first so the number of organisations owed reduces although if you are not at a point of being made homeless or bankrupt then psychologically tackling smaller ones may help.

Given the sum I had to pay my ex on our divorce (I earn more) the debt was £1.3m. I wonder if anyone has been at my level.... So in a bigger way like some on this thread I have been paying that off.

Nerfmother Sat 11-May-13 09:03:55

Murtette, I know that makes financial sense but the biggest one is 12k on a card and the smallest 1300, so I would rather get rid of the smaller ones so that the list of creditors reduces.
Xenia, nothing's in arrears, all of it is unsecured credit, so no risk of homelessness, just no fun as we can't enjoy our income.
Doubt you will find anyone with 1.2 million to pay!

lateSeptember1964 Sat 11-May-13 16:11:34

A Dave Ramsey disciple here. You need quick wins to have the psychological strength to beat the debt. List all your debts smallest to largest and start paying the smallest. As Dave says just do it his way. Your priority is food, light, shelter. Listen to his podcasts there really motivational. I got hooked about 16 months ago and were debt free apart from the house, and I will start overpaying this by September.

lateSeptember1964 Sat 11-May-13 16:15:19

Wow debt free apart from the house looks funny written down.. Also spreadsheets are the key. Nothing fancy just a straight forward excel. Every payday sit down and write your budget and use the envelope system.

Nerfmother Sat 11-May-13 22:10:28

That does sound lovely. Well done, something to aim for

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