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Inheriting an opportunity
mssloan
Posts: 67 Forumite
Hi,
I have been a member here for a little while - mainly due to the Iceland debacle.
It's time to own up to the biggest thing which has dominated my life for years - DEBT. When I was younger I took the book of all the good advice and help hints about borrowing money......and shredded it. I did everything wrong - consolidated credit cards into loans, extended loans by borrowing more, used credit card cheques from one card to make the minimum payments or other cards. I could blame the credit card companies for making it easy to borrow but I won't. The mess I was (and still am) in is MY FAULT!
Anyway, around about the start of 2007, I finally started to pull my head out of the sand. I had a very serious problem and it had to be dealt with. Back then I owned the flat I lived in (with a mortgage and a secured loan). I was able to sell this flat in March 2007 at around the market rate and continue to live there as a tenant because the buyer already owned other flats in the block and was wanting to gain freehold over the whole building (not having to move also saved me having to answer any embarrassing questions from my family - I told my friends that that rening meant it would be easier for me to move should I change jobs). The cash left over after the mortgage and secured loan had been paid off I used to clear my unsecured loans and HP agreements, leaving just the slightly reduced credit card debt mountain (although still at this point I had not been brave enough to actually add up what I had left to pay off). You might question my wisdom at leaving the more expensive debt but at the time I believed this would give me the most flexibility.
Sadly my mother passed away in July 2007. This event, tragic as it was, did, however, lead to an opportunity. In July 2008 I did receive a significant sum in the form of an inheritance. I could spent this money on a new car or stuck in a saving account (back when saving accounts actually paid you interest!), but, no, I realised I finally had a chance to take control of my debt monster.
I took a deep breath and blew the dust off my calculator and added up what I owed. I created a spreadsheet showing the Outstanding Balance, Interest and Minimum Repayments for all the credit cards I had it the time (15!!). I used the bulk of the inheritance money to clear and close half of these accounts (closing the MBNA account was especially satisfying!). I have used balance transfers and fixed until cleared deals on the rest of my accounts such that I'm not currently the full interest rate oin any of them. By paying more than the minimum I have reduced the mountain by a further £14,000 since September 2008. Only(!) £26,000 to go. I'm keeping the spreadsheet updated so I always know how much further I have to go. Also staring at it is good to remind me where I was I how far I've come. I'm hoping to finally be debt free some time in 2012. No bankruptcy! No IVA! All paid off with my money (after all, why should others pay for my mistakes).
mssloan
P.S. Apparently, if I stuck to minimum payments, it would only take me until March 2098(!) to clear everything...in time for my 136th birthday.
I have been a member here for a little while - mainly due to the Iceland debacle.
It's time to own up to the biggest thing which has dominated my life for years - DEBT. When I was younger I took the book of all the good advice and help hints about borrowing money......and shredded it. I did everything wrong - consolidated credit cards into loans, extended loans by borrowing more, used credit card cheques from one card to make the minimum payments or other cards. I could blame the credit card companies for making it easy to borrow but I won't. The mess I was (and still am) in is MY FAULT!
Anyway, around about the start of 2007, I finally started to pull my head out of the sand. I had a very serious problem and it had to be dealt with. Back then I owned the flat I lived in (with a mortgage and a secured loan). I was able to sell this flat in March 2007 at around the market rate and continue to live there as a tenant because the buyer already owned other flats in the block and was wanting to gain freehold over the whole building (not having to move also saved me having to answer any embarrassing questions from my family - I told my friends that that rening meant it would be easier for me to move should I change jobs). The cash left over after the mortgage and secured loan had been paid off I used to clear my unsecured loans and HP agreements, leaving just the slightly reduced credit card debt mountain (although still at this point I had not been brave enough to actually add up what I had left to pay off). You might question my wisdom at leaving the more expensive debt but at the time I believed this would give me the most flexibility.
Sadly my mother passed away in July 2007. This event, tragic as it was, did, however, lead to an opportunity. In July 2008 I did receive a significant sum in the form of an inheritance. I could spent this money on a new car or stuck in a saving account (back when saving accounts actually paid you interest!), but, no, I realised I finally had a chance to take control of my debt monster.
I took a deep breath and blew the dust off my calculator and added up what I owed. I created a spreadsheet showing the Outstanding Balance, Interest and Minimum Repayments for all the credit cards I had it the time (15!!). I used the bulk of the inheritance money to clear and close half of these accounts (closing the MBNA account was especially satisfying!). I have used balance transfers and fixed until cleared deals on the rest of my accounts such that I'm not currently the full interest rate oin any of them. By paying more than the minimum I have reduced the mountain by a further £14,000 since September 2008. Only(!) £26,000 to go. I'm keeping the spreadsheet updated so I always know how much further I have to go. Also staring at it is good to remind me where I was I how far I've come. I'm hoping to finally be debt free some time in 2012. No bankruptcy! No IVA! All paid off with my money (after all, why should others pay for my mistakes).
mssloan
P.S. Apparently, if I stuck to minimum payments, it would only take me until March 2098(!) to clear everything...in time for my 136th birthday.
Free at last! Free at last! Thank God Almighty, I'm DEBT-FREE at last! (with apologies to Martin Luther King 
)
Debt Free Roll of Honor #488
)Debt Free Roll of Honor #488
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Comments
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That is a great story mssloan - you have come so far and as you say, you have done it on our own. What an inspiration
Good luck xOD [STRIKE] £2600 [/STRIKE] £0 :j Loan [STRIKE]£9500.00[/STRIKE] £0 :j Car [STRIKE]£3150[/STRIKE] £0 :j Moving Costs [STRIKE]£1300[/STRIKE] £0 :j Savings £1150 :j
Everytime I hear the 'dirty' word Exercise, I wash my mouth out with chocolate!0 -
It's time to own up to the biggest thing which has dominated my life for years - DEBT. When I was younger I took the book of all the good advice and help hints about borrowing money......and shredded it. I did everything wrong - consolidated credit cards into loans, extended loans by borrowing more, used credit card cheques from one card to make the minimum payments or other cards. I could blame the credit card companies for making it easy to borrow but I won't. The mess I was (and still am) in is MY FAULT!.
Well done on events to date but I am compelled to comment that your bold point in the quote above (MY FAULT) is totally inaccurate. No lender should be giving the average person the faility to get into over £100k of unsecured debt. I am sorry but that is simply not your fault it is 100% their fault (risk profiling failed big time to your lenders lol)....
Just don't want others to have the misconception that everything is their fault - its usually 50-50. You cannot get into debt if they don't give it you so it is actually, half their fault. In your case it is 100% their fault cos risk profiling should have made them reduce some of your facilities....
2010 - year of the troll
Niddy - Over & Out :wave:
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Well done you for being a responcible adult and decent human being and realising you enjoyed the money and therefor having to pay it back! DFW Nerd #025DFW no more! Officially debt free 2017 - now joining the MFW's!
My DFW Diary - blah- mildly funny stuff about my journey0 -
Well done, sounds like you have your debt planned out to a T now :T
You must feel a great reduction in stress with so much debt paid of, such a huge amount of interest saved and a debt free date thats close enough almost to touch :cool:0 -
Well done you for not taking the easy option!!Debt Free since 23rd October 2008 :heart2:0
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Wow thats a really great story to share, it can't have been easy spending your inheritance on debt but you sound so positive and you will go on to own again as you've done it all without damaging your credit rating.
Well done and thanks for sharing.0 -
Wow thats a really great story to share, it can't have been easy spending your inheritance on debt but you sound so positive and you will go on to own again as you've done it all without damaging your credit rating.
Well done and thanks for sharing.
Going on from the OP trust me, their credit rating is already knackered - theres more chance of platting fog than their credit file being 'ok' :rotfl::rotfl: 2010 - year of the troll
Niddy - Over & Out :wave:
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never-in-doubt wrote: »Going on from the OP trust me, their credit rating is already knackered - theres more chance of platting fog than their credit file being 'ok' :rotfl::rotfl:
How supportive DFW Nerd #025DFW no more! Officially debt free 2017 - now joining the MFW's!
My DFW Diary - blah- mildly funny stuff about my journey0 -
never-in-doubt wrote: »Going on from the OP trust me, their credit rating is already knackered - theres more chance of platting fog than their credit file being 'ok' :rotfl::rotfl:
As of last month, my Experian Credit Score was 987
(Mind you that might be more of a reflection on how inaccurate Credit Scores are rather than a true representation of my credit worthiness)
mssloanFree at last! Free at last! Thank God Almighty, I'm DEBT-FREE at last! (with apologies to Martin Luther King)
Debt Free Roll of Honor #4880 -
Blimmin nora, that is a great deal of debt to get your head around so well done for taking the plunge. Burying your head in the sand is all too easy to do (i'm just about emerging but still scraping the little blimmin granules from my eyebrows!!) and the more debt there is the deeper you bury eh?! ( for me anyway!).
Well done tho ms loan.... stick with it xA&L OD: £968.60 (18/11/09)Sainsbury's Loan: £6859.98 (18/11/09)Virgin CC: £2123.22 (18/11/09) £2097.34 20/11/09Zopa Loan: £6865.57 (18/11/09)TOTAL: £16,817.37 not incl Bank of M&D!:eek::mad::eek::mad::eek::mad::eek::mad::eek: but WILL do it this time!!!!0
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