Dear Miss Lolly I have been in debt for the last five years. I can’t stop worrying about it. The thing is, I don’t earn enough to pay it off, so I keep going into overdraft, and my debts are getting bigger. What can I do? Julie, Surrey
Dear Terrified
There’s nothing worse than lying awake at night worrying about money. But it doesn’t have to be this way if you follow my advice. Firstly you need to look at all of your outgoings to make sure you are cutting your cloth accordingly. Use the Miss Lolly budget planner to write down a detailed list of everything you spend in a month. Don’t leave anything out e.g. coffees, nights out etc. Make a copy of this document and rename is “New Budget Planner”. Now start cutting back and working out where you can save money/make more money. Keep going until the income is the same as the outgoings. Next you need to look at your debt. Make a spreadsheet that details what you owe, to which institution/person and the interest rate you are paying. Make sure you pay off the minimums off every debt and focus on getting the most expensive one paid off first by over paying. Speak to a professional to see if there is anything you can do to make your debts cheaper. Don’t forget to sign up to my newsletter to make sure you get all the latest money tips. You might also find these websites useful too –
https://www.adviceguide.org.uk/england/debt_e/debt_help_with_debt_e.htm
https://www.moneysavingexpert.com/loans/debt-help-plan