I failed.

fifixx

Hey, well done - I think the Light bulb Moment has come!! Trust me, it is really hard to start "not spending" but once you are a couple of months in and have got a daily notebook you fill in each time you spend so much as 1p, it becomes a bit easier.

This forum is great and when you are feeling really down in the dumps, just post a note and you will be cheered up and encouraged to carry on sorting things out.

You have made a start which is the most difficult step - well done.

savingmummy

WELL done!!!!

You have achieved SO much in one day:j be proud:T

Keep this up and we`ll be coming to you for advise

sammey90

Hi

sounds like you're really getting somewhere!

just wanted to ask - could your new basic account holding bank switch your direct debits etc for you?

xx

DanDanDan_2

Ok, reading your post has inspired me so much I registered to tell you my story! It might seem a bit long but it's intended to show you that it will get better!

I'm 24, now earn £27k and 2 and a half years ago I was 21, living in Birmingham earning £22k with £27,000 of debt, 2 Loans, 4 Credit Cards and 2 Overdrafts! These debts were half from uni and half from my 1st year out of uni where I earned £21k and decided I was rich! So I joined an expensive gym, went for the most expensive company car I could find and spent a fortune every time I left the house!!!

My situation got so bad that I had to take cash out on one credit card to pay the minimum payment on another. Eventually it all came to a head when I lying awake every night and had to pay my rent 1 month late, which of course mad me really poor the next month.

Anyway, my first step came when I phoned CCCS, I don't know if it's still the same but you used to have to phone (thereby admitting you had a problem), book an appointment and then wait for them to call you back at the agreed time. My problem was I had been paid between calling them and my appointment time so I didn't answer. Within a week I was skint and had to swallow my pride, again, and set up a new appointment. They then assessed my spending and worked out that after essentials, £100 pm for food and £100 for me I had £446 to offer to my creditors. They then sent me letters to forward to the banks/credit companies.

Each of my lenders accepted the reduced payment I offered, mostly freezing the interest and leaving me alone as long as I paid as agreed. HSBC were the worst, they put my £14k of combined debts (£10k loan, £2k OD, £2k CC) into a managed lone at 7.5% over base, base was 5% at the time!! Capital One were the best, they let me pay £20 per month against a £3k balance with interest frozen.

2 and a half years on I now have 3 default notices and £20k of debt! However, I'm now in a position to save enough money each month to start offering full and final settlements to my lenders in 4 months time. I can finally see an end to this situation, it's going to take 2 more years but then each month I will have over £700 of spare cash each month!!! I'm sure you're a long way from this stage, but what I am trying to say is that by speaking to CCCS I got some informed advice and breathing room, this let me sleep and so perform better at work. Plus my debts started reducing rather than continuing to spiral upwards.

When my debts are gone I will only be 27 which is still young enough to enjoy my debt free life!! It's going to be amazing!

Mr_Original

Hi all,

just an update on what I have done today:

Cancelled my gym membership - while i was there, 3 people asked about signing up :O
Called my mum and she offered to pay £15 a month on our loan for now. so that can go back on the credit card!
Paid in £100 in pound coins i had into my new bank account (this was funny, i was sitting in this silent bank, clunking pound coins about counting them into bags! )
Paid £30 off on my CC! woo!
Did a weeks shopping at Aldi! Im proud to say I have enough food for over 10 days i think, and I do not recognise any of the labels in my cupboard!! I spend 31.36 which im annoyed about, but I will let it go as its technically my first shop of the month. I know once im in routine this figure can be got down even further!

Girlfriend is over tonight, I am going to tell her. My plan is to keep it light and not act like its the end of the world. We will see...

savingmummy wrote: »

WELL done!!!!

You have achieved SO much in one day:j be proud:T

Thank you! I'm on a mission!

sammey90 wrote: »

just wanted to ask - could your new basic account holding bank switch your direct debits etc for you?

I did think of this, but most of my bills come out a joint account with my flat mate that I just pay into by SO. This is easy peasy to change online. Im also weary of my bank knowing im about to bail, so I figure its better I control it myself. Its only 3 companies as well.

DanDanDan wrote: »

When my debts are gone I will only be 27 which is still young enough to enjoy my debt free life!! It's going to be amazing!

wow! sounds like we had a very similar situation. Its good to know you can do it, and eventually make it to the other side. Bet your so excited to be debt free? You going to go out and party?! (within budget, of course )

[Deleted User]

Hi again!

as I just said to someone else on here: The MSE people here are lovely & will keep your spirits & enthusiasm up when you're feeling low. It can seem like such a quagmire when there's 100's of letters to be sent & accounts to arrange but it does get better & I hope things continue to improve for you. I found that the simpler I lived, and the less I spent, the less crap there was for me to deal with and it was win-win all round!

Numpty_Monkey

I think your:idea: might have come on

Over the last few days, you have done a lot:eek:

you have a plan in place,
you are dealing with your debts:T

Hope it goes well with the GF, :A

Explaining your debts is easy, compared to explaing DFW:D

Well done mate:T:T:T

littlemissmoney

Mr_Original wrote: »

I did think of this, but most of my bills come out a joint account with my flat mate that I just pay into by SO.

Do you actually have a joint account with your flat mate or do you mean you have an account in one of yours names that you both use? If you are finanically linked that might be bad news for your flat mate :eek:

On a similar note, don't get any financial products jointly with your gf.

shrimpy_80

Mr_Original - a well deserved 'well done' to you, its so good to read the positivity in your last couple of posts and that you are starting to feel in control. And its true what everyone says, not spending unneccesarily will soon become second nature (some may say obsession!)

Good luck telling your girlfriend,she may be a little taken aback but hopefully will soon be on board. My boyfriend had never been in any debt and was totally baffled as to how I had managed to accrue so much with nothing to show for it! He is now very proud (if somewhat bemused) by my thrifty ways.

Keep posting and let us know how you are getting on.

p.s. Lloyds were the first creditors I paid off and it felt SO good, I had nothing but incompetence at their hands for years.

Sucker_for_sweeties

Spirit wrote: »

Hi

In a nut shell your housing and utility costs are almost £700 per month, then another £175 a month on groceries. Look at that as a % of your income - when you are coming to the end of yoyr tenancy you should really talk to your mum about moving home and paying a fair rent for 'board'.

In the mean time you could also look for a second job. You do need one and reducing your social life will give you more time. Its not forever - it is whilst you try to make inroads into your debt . It is doable in terms of time and energy - look on it a bit like parents who work full time and then 'work' at looking after children when they are at home.
When I had a hard place moment in the nineties I took an extra job, well three over a three year period.

• McDonalds, In and out for 3.5hrs 3 nights a week, and my tea for free.
• Sky's new (then) call centre Sat/Sun 8.30-5.00 for way over a year. Nearly broke me this, but after paying off the loan, I stayed on another 5 month's to treat us to another holiday to Turkey.
• Bar job in busy bar when I was 'suddenly single'. Not stag/hens type, more on the way home from work/uni or on their way out for the night place. Loved this one, paid no leccy/gas 3 nights a week, got chatted up, loads of free drinks, and fed again, but better nosh than McD's. :beer:.

If your full time work are OK about it, then it would be a good option, especially when you are only having to support yourself. The added bonus for me was how much money I saved being out at an extra job, not using up my heating/food etc.


Getting out of debt is trying - you will feel 'deprived ' at times but there is satisfaction in thinking "I got myself into this mess - and I can get myself out"


Try setting small targets - perhaps clearing the small but high interest debts - just so there are fewer of them.

It was so satisfying shutting down the small but most expensive store cards for me and was a lesson I've never forgotten.

Well done for recognising where you are and trying to move on in a different direction.

It really helps writing it all down too, you are on the way up. It seems if you can see the progress in B/W the the real issue is easier to diagnose/cure.


Good luck