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  • FIRST POST
    • MrJester
    • By MrJester 12th Jun 17, 11:57 AM
    • 949Posts
    • 430Thanks
    MrJester
    Why do we fall? To learn to pick ourselves back up. (£26K+ DEBT!)
    • #1
    • 12th Jun 17, 11:57 AM
    Why do we fall? To learn to pick ourselves back up. (£26K+ DEBT!) 12th Jun 17 at 11:57 AM
    Hello. MSE. Once again. I am here, to share my journey and find support and inspiration in you fellow moneysavers.

    My old debt diary: http://forums.moneysavingexpert.com/showthread.php?t=5055456

    Here's a mini breakdown of where I am right now:
    • £20,000 business loan debt; up to date
    • £4500 MBNA debt; defaulted
    • £2000 Barclaycard debt; defaulted
    • Currently unemployed and seeking

    A short story is that I was in good employment over a year ago and had disposable income to start bringing down my debts so it was just a matter of time. But I felt severely unhappy in my line of work, and it affecting my health. So I quit. And over the next year I obtained a business loan to try and create my own business, and it was unsuccessful in the financial sense.

    But I have learned a lot about myself, and about business. I will continue to progress at working for myself as this is where I think I will be happiest, but right now I clearly have significant debts and I need to dedicate the next year+ to sorting them out.

    So right now I'm seeking new employment. I know my worth better these days than I once did, and will be looking for a good pay cheque. Don't get my wrong, I'll be taking any half decent employment I can get but will be on the constant lookout for very well paid opportunities.

    In many ways I feel upset and drained and foolish from letting myself get here. But I know I did it to try and make a new life for myself and make my own riches because I work very hard at things and often felt jobs I have had didn't give me the recurrence for my efforts. But perhaps that is partially the naive youth in me.

    Whatever my mood and emotion, the situation I am in is prevalent; and it needs dealing with. I can no longer allow my impatience to rule me, and instead need to commit to this process of financial freedom so I can live life without any chains as I have always wished. I've wasted my mid twenties focused on debt but then being impatient and not making long term progress... well no more I say. No more.

    Here we go savers, let's do this.
    My new 2017 Batman-like debt free diary (£26k+)!
Page 2
    • MrJester
    • By MrJester 8th Sep 17, 1:34 AM
    • 949 Posts
    • 430 Thanks
    MrJester
    Hey sauce. Time for an update.

    I've been trying hard recently to land a job and I've finally got somewhere, I accepted a job offer this week.

    I'll be back on £25k, which is a £1k step down from my last earnings in employment.. but it's not a big difference (£49 monthly). But hey I'm going to be earning ok again, and there should be plenty of room for promotions over the next year.
    I do get slightly annoyed to think about how it I had stayed in some employment I'd probably be on my way to 30k+ per year, and in that time I instead racked up some serious debt. It pretty much dwarfs my previous debt and makes me feel a tad silly.

    But, I've learnt a lot over the last year about myself and about my aims. I've just got to pay a price now, in blood sweat n tears

    I've already looked into it and because I've been defaulting for some time now and my circumstances are about to change positively I should be available for yes an IVA or debt management plan. Without it, debt repayments probably look something like £600+ and that's just minimums. I'll be getting in touch with stepchange again very soon to see what we can do.

    My primary focus over this next year is to get out of DAMN DEBT, and get my freedom. Secondary aim is to slowly build up a client base on my side hustle, so that one day I might be able to commit to it fully again and have complete freedom and flexibility.

    My wage is £25k PA when I start, 45 hours though with any additional hours paid at £11 per hour (£1 less ph) BUT it has a lot of flexibility, as in I can work from home for a lot of the time. So this clearly has some good benefits too. So depending on how taxing the work is, some days I might just be able to stay at home and work all waking hours of the day and rake in the cash. We'll see. I still want to have a life.

    I'm not sure how a debt repayment plan might work if I want to make overpayments; I would imagine that goes out the window because once you agree on an amount it is fixed to that for the duration. Unless I can't get a plan in place, or only a partial one (I'm not sure a 20k loan is too high). I'll ring tomorrow and find out.

    I never make things easy for myself! But here we are, and the issue must be dealt with one way or another.

    I don't feel like there is much stuff I want to buy anymore, for the most part I just haven't been able to do have got used to it. The tricky part is when your income rises, so often does your spending. I can see myself buying lunch out more often here and there, getting a taxi on occasion instead of the bus.. and before you know it it all adds up and you're wasting money. I want to work on this quite a lot if I'm going to succeed.

    But let's journey on, and make something happen!
    My new 2017 Batman-like debt free diary (£26k+)!
    • sauceoclock
    • By sauceoclock 8th Sep 17, 2:26 PM
    • 758 Posts
    • 691 Thanks
    sauceoclock
    One typically wouldnít overpay on an IVA or Debt Management plan, the point is to reduce your total owed and obviously reduce your monthly outgoings. Stepchange will be able to advise you accordingly but Iíd say not to pin all hopes on getting out of debt within 12 months, instead pin your hopes on stabilising your outgoings with a management plan/IVA whilst you get back on your feet. Youíll wipe your debt, be able to put some money away/live a relatively normal lifestyle and wonít be able to take out credit for a while.

    I often kick myself for leaving London and giving up that tasty salary to come and work in little old Norwich where salary has not increased to match the sky-rocketing cost of living but then I remember how dreadfully unhappy I was doing that and how much better it is being back here. You seemed really peeved and hacked off with your job in your previous diary so maybe itís been a positive learning curve. Plus, like I say, in about 7 years an IVA doesnít stop you getting a mortgage even with the most mainstream lenders. Iím not a financial adviser and obviously just work in mortgages but I have experience with a family member taking an IVA and it really turned his life around, heís buying a house at the moment and wouldnít have been able to if he hadnít owned up to the debt and taken part in the scheme.

    45 hours a week is a lot, donít run yourself in to the groundÖ Flexibility to work from home sounds great though.. nothing like being able to have a cuppa t in your pjís on a cold winter morning rather than trudging in to an office. Well done on the job and hopefully itís a positive sign of things to come!!
    Loan (overpaying): £3,600 £3,093.60
    Car Insurance: £550.82 £410.82
    Credit Card: £781
    Car PCP: £11,450 £10,665.54
    • MrJester
    • By MrJester 8th Sep 17, 5:11 PM
    • 949 Posts
    • 430 Thanks
    MrJester
    One typically wouldnít overpay on an IVA or Debt Management plan, the point is to reduce your total owed and obviously reduce your monthly outgoings. Stepchange will be able to advise you accordingly but Iíd say not to pin all hopes on getting out of debt within 12 months, instead pin your hopes on stabilising your outgoings with a management plan/IVA whilst you get back on your feet. Youíll wipe your debt, be able to put some money away/live a relatively normal lifestyle and wonít be able to take out credit for a while.

    I often kick myself for leaving London and giving up that tasty salary to come and work in little old Norwich where salary has not increased to match the sky-rocketing cost of living but then I remember how dreadfully unhappy I was doing that and how much better it is being back here. You seemed really peeved and hacked off with your job in your previous diary so maybe itís been a positive learning curve. Plus, like I say, in about 7 years an IVA doesnít stop you getting a mortgage even with the most mainstream lenders. Iím not a financial adviser and obviously just work in mortgages but I have experience with a family member taking an IVA and it really turned his life around, heís buying a house at the moment and wouldnít have been able to if he hadnít owned up to the debt and taken part in the scheme.

    45 hours a week is a lot, donít run yourself in to the groundÖ Flexibility to work from home sounds great though.. nothing like being able to have a cuppa t in your pjís on a cold winter morning rather than trudging in to an office. Well done on the job and hopefully itís a positive sign of things to come!!
    Originally posted by sauceoclock
    Yeah, I realised that's not really possible to do overpayments. But getting started on that process as soon as I can, might need to delay it somewhat until my first full paycheque comes in which will likely be end of October, then I can make a proper DMP payment. So i'll see what I can do there, I have a friend who works for one of these charities so I should be able to get the best advice.

    Yeah I know I wont get out of debt in 12 months, but I want to try and commit to making money, and spending less money, over the next year. And try and put any extra aside for myself, selling bits on ebay things like that.

    Absolutely it's a give and take, I stay here because for my kind of work (both the full time work and my side hustle) they only have potential really here around open minded people/business with money in their pockets. Your right, my last job I really did not like. I began to earn good money and paying down debts, but it was an awful job in my view. Not right for me so I left very quickly and a year later racked up another 20k debt - but hey ho we're moving on.

    This new opportunity seems like much more like what is right for me, I could be wrong, but i think over the last year if anything i've learnt a lot about myself and what's right for me. Yes 45 hour week scared me a bit too, but with me being able to work from home + some weeks might not be 45 hour and yet i'll still be paid the same.. i think it should even out and not feel quite so intense, hopefully. Ha absolutely winter is coming and not having to commute through london on a dark and wet and cold morning will be nice. I can even probably go home (mothers) early for christmas and work from there and not even have to actually take time off!

    So it should be swings and roundabouts, and likely will be a better transition for me going from working from home full time for myself.. to mostly working from home almost full time for someone else and guaranteed income

    Thanks sauce, it's been a funny old ride eh? Back and forth the pair of us for years now!

    I am really excited to be able to get finances back in order, and look to the future and try and fight for some promotions over the next year, I think the company i'll be working for will have room for growth and I know i'm capable too. lets gooooo
    My new 2017 Batman-like debt free diary (£26k+)!
    • MrJester
    • By MrJester 9th Sep 17, 10:34 AM
    • 949 Posts
    • 430 Thanks
    MrJester
    So just a minor update:

    - Contract of employment came through, going to take a few looks over this weekend but so far everything looks good
    - Completed my debt management plan online and got the forms through that I need to complete to get that process officially kicking off, should be able to give time to this on monday. I think IVA is open to me too, but it's stricter requirements and leaves more credit marks. As long as the DMP keeps creditors off my back then I'm ok with that, I have no plans to take out more credit

    Generally I'm feeling much more positive, now that I have a clear plan/future for my finances. In fact I'd say I'm somewhat excited. I've always underestimated the feeling of financial security, because I'm generally someone who cares more about doing meaningful things and work no matter the cost, but to have some of that security back after a rough year will be a blessing.
    My new 2017 Batman-like debt free diary (£26k+)!
    • Reb2016
    • By Reb2016 12th Sep 17, 11:17 PM
    • 93 Posts
    • 108 Thanks
    Reb2016
    Sounds like you are really getting organised and great to hear you are feeling positive, amazing how much difference taking control can have.

    And congrats on the job too, it may be a little less than you were used too, but you sound very positive about it and are putting in into perspective, and who knows where it might lead.

    Reb
    Light bulb moment 6th June 2017 £13333.63 Debt now 12359.94
    DFD was October 2020 40 months now 31st May 2020 33 months Overdraft £450/£2250
    12/17 NSD September 9/4 in a row
    • MrJester
    • By MrJester 22nd Sep 17, 6:55 PM
    • 949 Posts
    • 430 Thanks
    MrJester
    Update time. Thanks Reb yes even more positive now, my last message was forcing myself to think about the future and not get too bogged down but I have some updates:

    - It's now been a week in my new job, and I'm actually really enjoying it. It's a very good work environment that is relaxed and trusts me to do my job well; which is ideal for someone like me. I feel like there is also lots of potential to grow at this new job. I also have opportunity to work from home a fair amount of the time which allows me to pursue other interests still.
    - I spoke to debt charity about my debt management plan today as I had sent over my proof of earnings and the plan will officially start in November!! (after first full paycheque)

    It really has felt like a wave of release, knowing that my creditors will now mainly work with the charity rather than me and I have that support in between both. It does feel good. It's no surprise we need a charity to help with that, people are so afraid of creditors and even me who knows quite a bit about how these things work now. It just puts a feeling of security into it. On the phone as well they are super understanding and considerate of peoples' emotional wellbeing so I have to commend them for that.

    I've got more plans in the works too for how to tackle my debt further. We're talking no more rent, and instead £££ to throw towards debts. The amount of money I pay for rent is insane.. can you imagine throwing all that money at debt each month? It'd be gone so quickly. Watch this space.
    My new 2017 Batman-like debt free diary (£26k+)!
    • Reb2016
    • By Reb2016 24th Sep 17, 7:25 PM
    • 93 Posts
    • 108 Thanks
    Reb2016
    Great to hear you are enjoying the new job, sounds like things are very much in the up for you

    Reb
    Light bulb moment 6th June 2017 £13333.63 Debt now 12359.94
    DFD was October 2020 40 months now 31st May 2020 33 months Overdraft £450/£2250
    12/17 NSD September 9/4 in a row
    • MrJester
    • By MrJester 24th Sep 17, 8:48 PM
    • 949 Posts
    • 430 Thanks
    MrJester
    Thanks Reb. Yeah things are generally positive, only thing is being very broke right now but should be cured somewhat at the end of this week as i'll get a partial pay cheque which hopefully i can make tide over my rent and spends needed for a month >_o

    but that end of october pay cheque.. whoo life should get a bit less sticky
    My new 2017 Batman-like debt free diary (£26k+)!
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