Never really been one to ask for help, but I’m feeling backed into a corner with my debt situation. I’ve been trying to pay down what I owe for a few years, but with the costs of living always on the up, it’s becoming more and more difficult. Toss in some unexpected expenses, and here I am, barely scraping by.

After losing my job last year due to the pandemic, I got caught in a money borrowing loop. It wasn’t all bad at first, I got a new job, albeit it pays less than my previous one, but it was something. Thought I could handle paying back the loans, but they’ve piled up and the interest is killing me.

Spent a few sleepless nights on Google searching up ways to manage debt. Seen loads of advice like consolidating the debt, budgeting, selling stuff I don’t need… even bankruptcy’s crossed my mind, but the thought of that scares me. If anyone’s gone through a similar situation, how did you handle it?

For people indebted before, how do you come up with a plan? How do you keep track of it all when the numbers seem to swim before your eyes? Also, BBC today ran a story about maintaining credit score in these hard circumstances. Is that really important right now? I have heard about debt management companies as well. Are they of any use or just another trap to fall into?

I guess I’m 🤔

Hey, sounds like you’re going through a tough time. Been there myself. Remember, there’s no shame in reaching out for help. You asked about debt management companies, right? Some are good, but do your research because a few can be sketchy. About your credit score, yeah it’s kinda important but don’t lose sleep over it. Step by step, focus on clearing your debts first. Try seeing if there’s any other income sources you can tap into. And buddy, just take it easy on yourself, situations are tough but they’re not gonna last. Wishing you the best!

I second that about the debt management companies. It’s all about doing your homework first, going in with your eyes open. Some can be life savers! As for your credit score, don’t stress too much just yet. Once you get your debts under control, your score will recover.

Extra income is a killer idea too! Maybe a side gig? I started dog walking evenings and weekends last year and it really turned things around. You’re right about the tough times not lasting. Hang in there mate, brighter days are coming. You got this!

Yeah, gotta echo what you’re saying about not stressing too much over your credit score right now. You’re working on the debt, that’s a great start. As for picking up a side gig or two, that’s really helped me in the past. I started doing some freelance work online and boy, having that extra income might have been a lifesaver. It might take a bit to see the effects, but trust me, the hard work really does pay off. We’ve all been there, mate. Keep your chin up, and keep working at it one day at a time. Quick tip though, try to save a small emergency fund as well, it gives you some wiggle room if anything unexpected comes up. You’re doing great, hang in there!

Absolutely agree with creating an emergency fund. Really gives you that mental security when life throws curveballs. You’re already on the right track with the side gig and tackling the debt head on. One advice though, look into consolidating your debts? If you have multiple high interest debts, you can potentially lower the interest rate and have one manageable payment monthly. Also, budgeting plays a big role. Write down where every penny is going and categorize your expenses into must-haves and luxuries. Try cutting down on luxuries for a while till you get back on your feet. Weeding out unnecessary expenses can sometimes be surprising. You’ve got this!

Solid advice there about debt consolidation and tracking every penny. That has legit helped me sort out my own financial mess. Also, I found talking to a credit counsellor super useful. Totally free service where they review your whole financial situation and help you make a plan. Ignoring isn’t gonna make it go away. And yeah, like cut out that daily Starbucks or whatever, those little purchases really add up. I switched to making coffee at home and man, that alone saved me like 100 bucks a month. Keep grinding, you can tackle this!

You’re so right, especially about those small expenses! It might seem silly to be counting pennies, but it all adds up by the end of the month. I used to splurge on lunch out every work day, but since I started packing a lunch instead, the savings have been huge.

And that totally free credit counselling service sounds like a godsend. I was skeptical at first, thinking there must be a catch, but it ended up being super helpful. Lol also if you add the savings from the credit counseling to the homemade coffee (freshly brewed coffee tastes better anyway, right?), you’re already steering your ship in the right direction.

Hang in there buddy, it’s surprising how doing something as simple as facing the situation and taking small steps can turn things around. And use this forum to share more of your journey or for a little encouragement. We’re all in this together!