What made you realise you needed to do something about your debt?

Buffythedebtslayer

I realised as I stood in a pub car park on the phone to Egg to arrange a 20,000 pound loan(to sort out the car, my cc and various things) that all was not well with my money situation. I was with it enough to realise that I should go with Egg cos they allowed overpayments but that was the only good decision I made that day.

That was May 2007. I found this site by accident, a mate emailed me a link to a thread on here after we both bought a Martin Lewis book and I started reading, Southern Scouser 's diary made me laugh and loads of posts just made me realise that I had this ridiculous debt as a single woman when some people had families and mortgages and what not. And what still amazes me to this day is that I never buy designer goods, rarely spend over 50 quid in one go and have nothing to show for my debt (aside from my education and professional qualifications and many cheap shoes, handbags and pets) I am or rather was utterly useless with money.

I have been here ever since, now more determinded then ever to actually have my wages each month then STILL be paying for my !!!!less 20s! For me it is all about being grown up being responsible and most importantly being in control.

xxxx

katenut

I'm surprised at how long its taken us to realise we need to deal with our debts (to be honest i dont think my partner still realises it!) - we've spent the last few years juggling debt collectors, bailiffs, repossession etc on and off, yet as soon as we get our heads above water we let things slip again.
However, after doing the minimum repayment calculator last night and realising that three of my credit cards would take over 100 years to pay if we carried on as we are was a shocker!! Showed this to my OH, and also did a full snowball calculator and i am feeling very motivated and excited about the prospect of this challenge! Its gonna be four hard years but better than a lifetime of worry :j xx

euronorris

Buffythedebtslayer wrote: »

And what still amazes me to this day is that I never buy designer goods, rarely spend over 50 quid in one go and have nothing to show for my debt (aside from my education and professional qualifications and many cheap shoes, handbags and pets) I am or rather was utterly useless with money.

I'm the same. I've never been into designer labels or even the cheaper labels - Nike, Elle, Reebok etc and really don't like big purchases, but still managed to build up a huge debt.

I think the little things obviously add up, but also, a lot of money went on socialising at that point. I hate to think how much money has been wasted on booze and fags over the years. Oh God, and I'm a generous drunk too, so would often buy friends drinks after I'd had a few.

hypno06

brokemedic wrote: »

Wow hypno, am I correct in thinking that you paid off £80,000 in three years??

More like £65k in three years - just before I came to MSE I also received a small inheritance from my Dad's estate which I used to clear a couple of debts.

Poosmate

Thanks for this thread, I've found it really interesting reading other people's posts and how they cme to their LBM.

I've been treading water for so many years it's a way of life for me now. I've always managed my finances but that's just about it - I don't seem to be making much inroads into the debt.

I too have nothing to show for my debt and feel so stupid because of it. I have mini LBM's. I can see the bulb but can't seem to find the switch. I seem to be just one of those people who stumble from one mini crises to another, a bad realtions ship here, a bad MOT there, broken appliances, and so on.

I think I first saw the lighbulb when my lodger moved out. I lost £200 per month in income practically over night. That was a major panic moment. I've adjusted my "lifestyle" to be able to just about cope now. I've only used my credit card twice this year, AA breakdown cover (because I forgot to cancel it) and car insurance (through Quidco so should get £70 cashback which will be paid straight on to the CC).

I feel lucky that the recession doesn't seem to have adversley affected me. In fact, my mortgage payments have gone down by £40 pcm so I'll be using that to make some payments to my most expensive debt.

2008 was my realisation year, 2009 was my planning year and I hope 2010 will be the year I can finally start to really make a difference to my debts.

Here's hoping anyway,

Poo

mooomin

I came on here in November last year and my debt is now about half of what it was. I have about £5000 to clear, which is a lot of money but less than a lot of people on here. I think my LBM came when I was thinking about getting another

So, I joined MSE, started doing the PAD Challenge (I know it doesn't work for everyone, but this has made the biggest impact on my debt) and found new words being added to my vocabulary.....cashback, Quidco etc. I decluttered a little and sold things on Ebay and MusicMagpie, putting all the money towards my debts. I paid big lumps off the debts when I could but made sure that I still maintained a life - when I had my two council tax free months this year I bought an iPod for myself with one monthly payment and put the other payment towards my debt!

I have had some setbacks - Mr Fresian hasn't had his LBM yet, so I have paid off a small debt of his to stop him being charged. I sympathise with Poosmate - we had our lodger move out this year losing us £355 per month (including money they gave us for bills) In the pre-LBM days this would have been a disaster. I'm a DFW now though - just rejigged the spreadsheets and refused to put the central heating on until November :rotfl:

Poosmate wrote: »

I think I first saw the lighbulb when my lodger moved out. I lost £200 per month in income practically over night. That was a major panic moment.

I now aim to be debt-free by my 30th birthday next year, although I'm not 100% sure I will hit that target. I like having something to aim for though and it's been lovely reading some of your stories.

Here's to a debt-busting 2010! :beer: consolidation loan as I needed the 3 month payment holiday to pay for Christmas. I would still have spent on my credit card though...

brokemedic

hypno06 wrote: »

More like £65k in three years

Can I ask how you managed to pay off such a huge amount in such a short time? What would be your main tips for reducing debt if you don't mind me asking - I think that's such an achievement..

beanielou

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rictus123

Just now. Got £210 to last me until near the end of January. Then il get £530 when il have £100 to clear credit card, £55 loan repayment, £35 phone bill and £100 digs.


I also have a smashed up van desperatly needing sorted out but lack of funds is stopping this. Trying to save a bit so im never stuck for cash(this is what makes me depressed) Just knowing i have £500 in my account should i need it is a great piece of mind.

hypno06

brokemedic wrote: »

Can I ask how you managed to pay off such a huge amount in such a short time? What would be your main tips for reducing debt if you don't mind me asking - I think that's such an achievement..

ooh, loads of things.....including:

• learning to budget
• doing the storecupboard challenge, grocery challenge etc to make food shopping last longer
• selling the second car and making do with the bus
• using ebay, amazon, car boots to sell unwanted stuff
• taking in student lodgers for the past 5 years
• taking on 2nd and 3rd jobs
• not buying expensive gifts
• not buying new clothes/shoes/having haircuts any more
• matched betting
• free bingo/scratchcards
• mystery shopping
• using quidco
• doing surveys

but the main things are:

• being focused,
• being determined
• sticking with MSE!