Firstly, the fact that other people may be in debt doesn’t mean anything. Like you admit, this is a problem. A big problem. £3k may not seem big, but you’re young, your income is tiny and this problem really could cause problems for your family. I think you know that which is why you’re asking for some help. You need to think about this in different way:
---REDUCE SPENDING---
For a 20 year old women, this may be hard. But you need to look at every aspect of your spending and make massive cuts where you can. Drink water only (it’s better for your health anyway) is one example of a massive cut that may seem drastic but it’s really not, needs must. Meal plans so you know what food you need to buy for each week is another example but I would read website like moneysavingexpert.com about general reduction of spending but also search google for specific website. For example, there’ll be websites about easting really cheaply but healthily. I don’t know if you overspend or not, but for sure there will be big savings to be made if you make the effort. It goes without saying that you shouldn’t be buying any luxury items right now – no holidays, no jewellery, no clothing unless you actually need it etc.
---INCREASE INCOME---
This may seem impossible, as you can’t work. But make sure you’re getting all the benefits you’re entitled to. Are there are extra things that you or your child is entitled to? Maybe not, but it’s worth researching. Is there anything you could sell in your home? Old kids clothes? Books? You could sell stuff of ebay if you have anything. This next bit will sound mean, but I would sell the ipad. You don’t need it, it’s a waste of money. If you have a phone with a camera then it’s just a luxury item that you can’t afford.
---GET BETTER DEALS---
£85 a month for EE is a joke! Seriously a joke. If you’re paying more than £15 a month for your mobile phone you’re paying too much. Go to moneysavingexpert.com and look at the deals. Ditch the ipad. Then go to a price comparison website and get a deal on internet and phone. £45-50 MAXIMUM for mobile, landline and broadband. You can get a lot lower than that though. Check your direct debits and see what else you can ditch or get better deals on.
---BORROW FROM RELATIVES---
The ideal thing would be to borrow 3k, pay off your debts and pay £65 a month for 4 years back to your relatives. If one person can’t do this, then maybe 1k from 3 people each? Your debts are an issue and you won’t be able to borrow money from any bank to cover them. Minimum payments are a pain and they won’t be interest free forever.
---CHANGE HABITS---
£700 from Very? Please don’t say this is from clothes. If so you need to realise you’re got a huge problem. I would literally not spend ANYTHING in the future unless you seriously need it. You can’t afford anything – buying anything, even a loaf of bread, is putting you in debt (as with that money you could be paying off debt). You need to realise that every purchase you make, every purchase, is keeping you and your family in debt. If you see your spending through that truth, you may change your habits.
In truth, I don’t think you’ll change and in 5 years time your debts will be even higher. I hope you prove me wrong. Good luck.
