Years of hard work do pay off!!

speirsro

I visit this site nearly every day, and always read without really involving myself.
I've posted a few times about my own debts and being chased (Aktiv Kapital - :mad:) but thought it was about time I shared my own story, even if it gives someone inspiration that everything works out!

When I was 18, I applied for my first credit card.
I lived at home and had no commitments.
This arrived on a Friday morning before I went to work and had a £500 limit (target).

After heading to the nearest supermarket and buying myself a DVD player (This was 2000, so not cheap), DVD's, cigarettes, munchies and some CD's - I'd spent about £400 in an hour.
This was a sign of things to come.

Fast forward a year, and 2 more credit cards and 5 "consolidation" loans, and a sky high phone bill - I was now in way over my head.
I grew up not having much money so the year had been brilliant - not a care in the world.

At the worst, I counted up about £25,000. Aged 19, that was scary stuff - I was getting letters about court etc. Looking back, there is no way i should have been given that much credit. I was only on about £15,000 a year at the time.

It got so hard at one point, I used my dad's credit card (we have the same name) to pay my credit card bill. I even went to dodgy loan places to help me (BIG MISTAKE).
Anyway - my parents were furious. This gave me the kick (or LBM) to sort the mess out.
I started working 3 jobs, and done what I could. Wasn't until 2004 when i met my wife that things really picked up. She was great with money and helped me sort out my mess. Everything started getting paid off.

I'm now 26, and other than Aktiv Kapital chasing me last year for £1500, and MH now chasing me for £2000 (both of which are SB) I'm as debt free as can be!

We've still got debt (mortgage etc) but I don't count that. My stupidness back then taught me a great lesson.

It's hard, and I'll never tell you otherwise, but it gets better, and the feeling once it's all gone is awesome!!!

Hopefully it spurs someone on to sort their debt out, and as for MSE - thanks so much. I didn't like posting, but greatly appreciated the help.

Cheers!!:beer:

bertman

You know what Speirsro, this sounds pretty much like my life as well, I left school in the very early 80's and for my 18th birthday I applied for a credit card, it turned up in about 3 days with (I think) a £500 limit as well. I went out that weekend and spent £50 on a really cool pair of Reebock boots, that was a lot of money back then. Over the years I got more credit cards and for years I was on a pretty bad wage. I woprked hard and managed to always pay the bills. When I got a better wage - about 10 years later - I got a loan to pay off the cards. I managed for years without running up many debts, but then BANG - I started a business which almost sent me under - all the banks, credit cards etc. Threw money at me until I had to sell. Now I have huge debts but the cards and banks don't want to know, apart from slamming more fee's at me.

I will be free of debt in about 5 years, and then I know apart from a mortgage I will NEVER have credit again. You really do live and learn...

speirsro

Bertman.
It's awful, that, on top of us making these mistakes, bad luck also contributed in your situation.
At least we have learned, and it's putting us on a good path in the future.
Best of luck, and I hope the 5 years fly in and don't cause you more than hassle than is necessary!!

WASHER

Gosh, its not only me then!

When I turned 18, I applied and was accepted for a Halifax Credit Card with a £1K limit, I spent loads in "Next" just a few days after receiving it, I couldn't afford to shop at "Next" then, it was almost a designer shop in my day and way out of my price bracket. I even went to M & S and tried to spend loads, but was told they didn't accept credit cards at all, so I went to the cash machine with the credit card and withdrew the money so I could buy my basket of goodies....how stupid of me. Six months later, I was on the phone to the Halifax begging them to help me as I couldn't keep up the min payments, they did help me, but that didn't teach me a lesson, I went on to get further credit and landed myself in a whole load of debt.

Today is different, I have grown up a wee bit, and have learnt to take responsibility for my actions (I don't blame the banks for giving me credit, I applied for it, and they are in business to make money), I have repaid every penny, not easy, almost wrecked my marriage several times, we were both as bad as each other, my OH isn't fully aware yet on how to budget, but I keep him on the straight and narrow.

Debt free is a wonderful feeling, I do have a credit card, I couldn't live without one as I internet shop and wouldn't use my current account card as I was targetted by fraudsters, but I clear the balance off each month without fail. Its all about discipline and not caring whether your friend has a wardrobe to die for, I don't, I live very frugally now, but I can sleep at night knowing I owe no-one (except mortgage, but don't count that), my friend has tons of debt and will not hear of me saying to her you will land in trouble if you are not careful. I will be here when she needs a shoulder to cry on cause shes in trouble, it won't be long, she had one of her credit cards declined in tesco just on friday, (I was embarrassed for her, she didn't seem to care, just handed another over).

bertman

Cheers Mate, hope you enjoy yourself now, I will be posting a message like yours in 5 years to hopefully help people out. I think that this board will always exist in some kind of way....

bertman

Hey Washer, I reckon we are seriously not the minority with these stories, over the years companies literally threw money at everybody, then when you couldn't pay they set up loans to clear and reduce the payments, then you start all over again.... It really was a spiral.....

Times change - everybody is much more savvy, people know the cost of things much more now than they ever did. I too remember Next when they started, not many people I knew could afford their prices as they were really expensive. Nearly everyone I knew had a Next card and had a huige balance on it...

I went past one today and they were trying to push the charge card to everyone who went past - but its business isn't it??

WASHER

I didn't even know Next did a charge card:eek:Whats the APR on that?

I think you are right, we are not in the minority. I wish we could turn the clock back to my parents time and you had to save up for anything you needed rather than shoving it on a credit card, people are far more fashion aware and everything in the house needs to be coordinating and brand new, it simply wasn't the case when I lived at home, mend and make do, nothing matched but we were happy and contented with our lot, if only it was the same today.

speirsro

It's funny how, at the time, you think you're on your own and no-one else is going through it...
Just for the record, though, I wasn't blaming the banks etc - It was all down to me applying for it, getting it, and then spending it.
I just think, to stop this happening to someone else, there should be stricter steps in place for young folk, or even budgeting lessons, or a lesson in the consequences of debt.
I had nothing, and knew nothing of what could happen.