I’ve never been shy about talking about money, or in my case talking about debt. I’m of the opinion that by feeling like we can’t talk about debt it makes it more difficult for people to recover. It becomes this dark secret and you feel like you have to hide it, even from your partner, making repayments on the sly.
While I’ve always been open about my finances it has been difficult for me to accept that I’ve started to lose control. When I opended my son’s bank account, one of the bank managers told me that I needed to take a serious look at my situation and and try to get on top of things. Which I thought I was. I’d been making my payments, but in reality it was barely making a dent. Any progress I was making was clawed back by interest.
In March I had a follow up meeting with another Bank manager with the intention of resturcting my loan. It became clear very quickly that my out goings greatly outstripped my income and my credit rating was shot. I had no options available to me and there was nothing the bank could do to help me. The lady that saw me was lovely and genuinely wanted to help me, having been where I am herself. We both cried and had a chat about it. And she gave me really good advice and reasured me that thing will get better.
At the moment my debt is in the ball park of £17,000. Even with making all my payments and paying more than the minimum, the interest on a sum this large is very difficult to keep ahead of. So I have contacted my creditors and informed them of the situation and we’ve come to an arrangement. The interest has been frozen and we’ve set up monthly payments that are manageable and leave me in a better position as I had previosly been spending all my income on bills.
From here I am doing all I can to create other sources of income. My partner is a stay at home dad (this eliminates the need to pay for childcare) and I’m not in a position to take on any extra hours at work. I am have been doing Avon to earn myself a bit of pin money but now I’m going to pull back on spending on myself and put those earnings into paying off the debt. I’ve also began advertising for makeup cl;ients again (which I’ll go into in another post), which should bring in a good deal of money too.
Ideally, to beable to pay off my debt, pay my bills and life comfortably, I would need to earn £2000 – £3000 a month. Now it’s just figuring out how to make that happen.
And I’ll bring you all along on the journey.