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

Lottebear

Mine was when I sat and thought about how much we earnt and at the end of each month we were both overdrawn. We had been very careful not to get into debt with our wedding and Honeymoon and I thought once this was done, we would have some money left at the end of each month.


Most of OH debt is from his previous marriage therefore I have pointed out to him that our lives should not be effected by this. Therefore this is the kick we have needed. Coming on here and seeing the creative ways people clear their debt, also how little some people live on.

brokemedic

beanielou wrote: »

brokenmedic~Subscribe to Hypnos diary

Thank-you.. will have a read once I have had a sleep - just finished a night shift..

Hypno.. Thanks for the list.;) I am definitely going to try and give match-betting a go in the new year...

Knitty78

I lost my job (work in Finance doing admin work) at the end of June 2008. We both had very good salaries and, luckily, could manage on just the one but we were also planning a wedding and we had over £30,000 debt between us and were just paying the minimum payments. We also want to start a family and I thought enough is enough. So I logged on here (after many years of lurking), cancelled gym memberships, set a proper budget and started paying off the debts. I could have done more in terms of ebay, daily clicks etc but I am proud to say that coming on here meant we paid for the wedding without adding to the debt, I paid for Christmas without adding to the debt and we're both learning to say we can't afford it. 2010 is going to be our year - it's unlikely we'll clear the debt completely but we're going to have a good go at it!

ships-cat

Both of us got made redundant in March (£42,000 combined salary), tried to plod on, head in the sand etc. Then on 9th Nov '09 whilst taking kids to nursery had my light bulb moment.

Realised that I was taking the kids to somewhere we couldn't afford to pay for. Sat in the car, floods of tears, kids upset as my whole world fell apart. Went to see the nurse, blood presssue was sky high, felt stressed and extremly low, all the usual stuff

There and then I decided enough was enough and that it was time to face the issue. Here's to the future, positive thoughts and no hiding from the debt, despite the numbers I feel lots better. Thanks so far to MSE, Payplan and Citizens Advice.

XSpender

Both myself and DH were in a lot of debt when we met in 2003, mine from buying a flat when I was on a lot lower salary that I couldn’t really afford and overspending on clothes and holidays and DH from overspending on clothes and going out and living beyond his means.

We continued to run up more debt when we began living together and then got married (on credit). We always paid our payments but never had the money left over for the lifestyle we expected to live so money was spent on credit cards every month. We had no savings and had tried consolidation several times without making any changes to our lifestyle or spending habits.

We even tried our own DMP in summer 2008 but this failed due to the harassment we received from creditors and no one would accept our payments unless we went through CCCS.

We were trying for a family and I was devastated that should our free NHS go at IVF not work we would never be able to afford to pay for another cycle ourselves due to our debt.

Late 2008 DH salary and bonus was restructured reducing our income by over £500/month and we could no longer afford to meet even our minimum payments and over a period of 2 months researched and then entered into an IVA. Our debt stood at £85k unsecured and £35k secured.

We have been in the IVA for over a year now and it was the best thing we have ever done, our whole attitude to money and spending has changed. We feel better off and more secure than we have for years. Our budget is realistic and still allows us to have a life. We are even beginning to be able to save a little. I know my credit rating is shot to s**t but as I never want credit again, what does it matter? The only credit I will need is a mortgage and when I am debt free my focus will be on overpaying the mortgage.

We are expecting our first child in the spring and have never been happier. The advice and support I have received on the forums has been invaluable and has made me realise that we are not the only people in this situation.

cookie220985

for me it crept up on me as my wedding was the main cause of my debts, and then when i thought i had it all under control by paying as much off as often as possible, tax credits slapped a massive sum on top of my other debts with no warning and no idea that theyd overpaid me in the 1st place, at that time i had no pc access, no way of getting to the local library, no landline phone and a 1 and 3 year old to look after in a 1 bedroom flat. Obviously ive moved and had another baby since then but now, i can definitely say, that at this moment in time, my dmp is 1 of the best things i have going for my finances.and every time i pay each debt off, i will snowball the amount of what my weekly payments were straight onto my tax credits debt. The quicker the better. Im even saving a jar of loose change and changing it for pound coins to ram onto my debts, with not a penny left to spend until im DF for good.

Butti

My lightbulb moment more or less coincided with the 0% APR coming to an end on my £5000 Virgin debt. That shot up to 25% APR and the minimum payments became about £130 from £25.

My other cards also looked to increase their APRs due to my 'heightened risk'.

So having bumbled along with a slowly growing debt for about 15 years I woke up to the need to get rid of it. I cashed in an ISA to just about finish off the Virgin card.

The next challenge is dealing with redundancy in March. I am hopeful of finding temporary work and am aiming towards a career change.

nekosuki

dib-dab wrote: »

I am just annoyed that we have lived beyond our means for so long and now are suffering for it

Hi dib-dab, totally agree. My overspending in my 20's is the one and only reason behind my debt.

My LBM came when I realised that nearly 50% of my net income was going straight to my creditors. I fell into the consolidation loan of consolidation loan trap and have been clawing my way out of it ever since.

Hoping to be able to start overpaying in 2010 though, get rid of it all a bit quicker. Will be debt free by my 35th b'day so not toooooooooooo bad I guess :T

Spirit_2

Good thread - has helped to "ground me again".

My story - nothing exceptional. LBM July 2007 when I realised we were going on holiday spending money we did not have.

Mr Spirit used to get the Martin Lewis emails but only thought of them in terms of buying cheaper utilities - from these I came to this site. Got lots of good advice, no criticism and a structure to look at our income and outgings. After posting our SOA and totalling up all debt, reckoning up the interest we were charged each month and other posters suggesting how we could cut our spending I knew it was do-able.

We had largely got into this mess when Mr Spirit was made redundant and we had carried on living the same life as when he was working - pre-redundancy he had earned £97,000 a year (2002). We not only paid for our own home but financilly supported my extended family.....we were the 'well off' ones! Confused access to credit as wealth, compounded by only thinking in terms of what we earned not what we spent and owed.

We owed £64,000. Now we owe £14000. Some family support still ongoing as we have a mortgage on a flat for my mum.

shorelines

When I realised I was paying off a holiday two years after going on it (it was only to Europe and I stayed in youth hostels!) but didn't do anything to curb my spending so was in my overdraft constantly. I made half hearted efforts to only spend a certain amount a week but it never went anywhere.

I finally realised I had to pay off my hefty overdraft and stop wasting money on junk from ebay etc when I envisaged a future with my OH. It made me grow up overnight. I got an ISA for the first time, paid off my debts and am now putting money away for a deposit. I wouldn't have thought that it would be something as simple as meeting someone that would make me stop wasting money.

Granted, I've never been in the amount of debt some people have been in on here, but when I think of the money I've wasted I could cry. But that's all changed now :j