Being in debt is the best thing that has ever happened to me

Kevicho

I know this sounds like a very bizzare thing to say, how can debt ever be a good thing? Well i feel like a confessional and just writing and getting a few ideas off my chest

The first day I confronted my debt I was in poor shape, I dont mean physically i mean my life was in bad shape.
I wasted money on nights out, sky at full package, enough beer to sink a brewery, taxis, take out food and just basically living my life for that day.

Now i have always been blessed with earning enough money to cover this, but 2 years of university (which i didnt pass) and a total of 6 months out of work in 2005 saw my debt rise to over 10000 pounds.

Many a time I reached my limit, had little or no money for christmas presents and neglected my education and myself (mostly down to the alchohol), all of these thing were not pleasent experiences, and i felt i was letting my family and most importantly myself down.
Being the smartest kid in the class at 11 meant people had high expectations of me.

At that point i didnt care about the debt, didnt think about the future and when I landed my current i thought great, i can go out again

Then something changed, i dont know exactly what as my alchohol addled brain made that time a little hazy, was probably my 26th birthday and being too skint to do anything, but i decided i had to sort this out, as my future was going nowhere.

Luckily in my new job i also found out about this site, which has been a instrumental part of this change.

I sat down that weekend and went through my statements and drew up my own spreadsheet, i totalled what i owed, the interest rates and what outgoings i had per month

I then set myself a very strict budget.

Now so far i have managed to get close to keeping this, ive not been anywere near perfect, but im on target, luckily along the way ive had a few things which have covered the indescretions .

I also decided i would need to prioritize, so if i wanted to go out, then i had to cancel sky (which i had 3 months half price, then cancelled), this has been a huge step forward as it has not only free'd up my cash, but also lots of my time.

I then decided my main obstacle was the drinking, so i set myself 100 pound a month for (essentially) beer.
My main problem was that my 'local' was actually a pub 15 miles away, which meant if i stayed too long id need a taxi home.

So i made a conscious decision that my real local pub would be the one i went to.

This is down to twice a week now, both nights for quizzes, and i dont drink near as much now, i can get away with 10 a night

I am seeing the all round benefits of this change in multiple areas of my life (especially my health and my wallet), i mean how can anyone make informed decisions when they are hungover (i know i was in that state for 4 years)

My other starting issue was the fact that my debt was all over the place and all on high rate cards.

So i decided to get a consolidation loan of 6000 to take care of the high interest debt and concentrate my efforts on switching the rest to lower rates.

I know 99% of people on here will argue against this point, consolidation loans are evil and they will trap you in debt.
That is wrong.

The person who takes out the loan is making a smart decision because he/she is cutting down on the interest which frees up more money for debt repayment.

However this is where a choice has to be made, do they waste the money they save (and in effect put themselves into more debt), or do they choose to clear off debt by using that money to clear a credit card, that is the real evil mans greed.

I obviously chose to go down the repayment path (and then i adjusted my tactics later when i moved all my non loan debt to a 0% card).

For me this has worked out in the best possible way, i got the interest down, gave myself some room to think and set my goals, and also less debts make you feel more positive.

Well today is around 7 months after that day and i feel like this has been the most significant event of my life.

Paying off the debt and watching that figure going down is one of the best feelings in the world, also i see my goals are back in sight again, having no money can make paying for driving lessons hard.

Also the fact that i am no longer drinking every night and wasting hours upon end watching the idiot box has freed up so much more time.

Currently im listening to some tapes regarding ideas for wealth building and also reading up on other interests and getting in some IT study, basically arming myself with the knowledge i will need to achieve my goals.

My perspective on things has totally changed, before i had a cant do, victim, the world is against me type of attitude.

Now it is the opposite, i am my own god, and i can make it happen.

I just hope if someone is feeling down and reads this, can see the positive effect this site, the people, the advice gives and also what else can be achived by adopting a new philosphy on life.

I was a 25 year old loser with diminishing prospects and huge debt, now im a 26 year old with lessening debts, using my brain again, rediscovered my optimism and the incentive to have 6k in the bank next year to start my life with

I feel like i am a lot more valuable and indeed i plan on having a great future

Kevicho

Where the heck did that question mark come from lol

Ali-OK

Excellent post and agree with you totally. Well done btw too!

Life can get into ruts, then debt weighs you down, makes you feel negative about everything.

I've got a long way to go, but I feel very positive and happy about the way things are going. Most of mine was caused by circumstance, so worry added to worry got me nowhere!

Interesting you mention education - I'm looking to do an OU course later on, as I want to be in control of my career. Everything is out there - we just have to go get it!

Good luck!

Angela_D_3

Wow good for you !

roversbabe

Great post Kev

Very inspiring. Good on you for making such a positive change

rb

brranger

Well done buddy!! great post.

sarah0404

Yes, good post. I agree with you, but way too tired to post a big long reply! Just recently, like in the last week or so I have had a really huge lightbulb moment. Already had one about needing to get out of debt, but I realised how rich we could actually be. I've always felt poor and skint. I never knew where my money was going. Now it's all in order I know exactly how much I have. Once I'm out of debt (which will be December 09) I'm going to start saving money. I plan to save £5,000 a year. Not very much by some peoples standards, but considering my partner earns less than £15,000 a year it's a huge amount. Dunno what I'm going to DO with all this money exactly, but at least I'll have money when I need it. By the time we're 40 we could have £50,000. I'm even starting to think we could become millionaires without winning the lottery! Well not quite, but I realise how totally stupid we have been. Why not wait a few months and save up and buy whatever we wanted? Why did we have to buy it now??

I don't have anything against consolidation loans either. As long as you realise you have a problem with money and don't be a total !!!!!! and run up more CC bills like someone I know. Oh wait. That was me. (well my partner actually, but if I hadn't have been ignoring the finances it wouldn't have happened) We got the consolidation loan because there was no where else to go. Couldn't afford the minimum payments on cards any more and were right at the bottom of our overdraft. THEN we did it all again! That was what gave me the first lightbulb moment. I couldn't go on getting loans to repay loans. If I'd just stuck to the original consolidation loan I could have been half way to paying it off by now.

Although technically I should be depressed about having 31k of debt (£31,442.64 to be precise!) I actually feel quite cheerful about it all. I wouldn't say it's the BEST thing that ever happened to me, it has changed my life for the better though.

ps - what are the tapes you've been listening to? They sound interesting. I'm looking learn more about money (not just how to spend it!).

presidentdeb

Great post. Well done for getting things back on track. The positive thing about getting ourselves out of debt is that it makes you take control of your finances and that is such a good feeling. I think it then can spread to other areas of your life. If I hadnt been in debt, I wouldnt have read martins book and I would have muddled through life wondering why I never had any money!

In_Search_Of_Me

I'm nowhere near being out of debt (will take years..about 9 of them!) but since my lightbulb moment about 1 1/2 montsh ago I have changed beyond recognition. Not a penny on redit card. No o/d for the first time in my life, cooking & enjoying it; feel more spositive, despite knowing the debt because now I know what I am dealing with, rather than havinging my neck in so deep I could peek at Australia! Sometimes I genuinely could cry (& with lightbulb moment did for a whole weekend!) ...at my own stupidity, at the sitatuations that people have got themselves into & understanding the sheer terror of being at total rock bottom, with joy when I sell another of my useless items on ebay & see my debt going down; getting a two pound coin & listening to the clunk of coins go into my coin sorter...but most of all feeling really happy, free & in control with the absolute certainly that I will never go back to the "just chuck it on the credit card" mentality that I lived with for years. Great also to know that with a very few exceptions that I am surrounded by people here who will support me (& I them!) on the road ahead! Thanks for great thread!

Kevicho

Ive Pm'd the names of the tapes sarah, as i think marketing other peoples products would probably be against forum rules

I think i could probably list the main points of this experience has taught me:
1) I dont need to be sat in a pub to enjoy time with my friends
2) TV is a waste of time, we are right now sat looking at a vast library of information and ideas, why turn your pc off to watch repeats of 10 year old + shows
3) I am in control and responsible for my money, no one else will bail me out
4) Money isnt important, its just a tool
5) I should not lose the battle against the media, marketing, credit and merchant industry, they will not get my money, ill keep it in my own pocket
6) Being debt free will help my health, less stress means more time with my mind being used properly
7) If i can clear this debt quickly i can do anything, that includes setting up my own business and being 100% control of my own finances
8) Compound interest is the most powerful force in the world today, and it has been working against me, when i get sufficient saved and invested, it will be working for me (not the credit card companies)
9) Poor is just a state of mind, which holds people back, it gives you that cant do attitude which i have let myself fall into in the past
10) Being debt free will enable me to progress my career, as instead of 60 quid + interest i can use that for education when i need it
11) Paying in cash means i pay less for everything, also it means i will be able to pick up a bargain

I really cant wait to get into this situation (of having money of my own), in the meantime im bulking up all the info i can find

Ali-OK

Debt freedom gives choices.

I may go part-time after I'm debt-free - just until DS is old enough to come home alone from school. We don't get enough time together and another 2 hrs a day would be lovely. Money can't replace time lost.