Debt Trouble? It Does Get Better.

derbyman2010

Hello everyone, I'd like to share my 'light at the end of the tunnel' moment with those in the depths of despair; and how it does get better.

In 2004 I was reckless with money. I admit that, and looking back I was naive and stupid.

I ended up going through a Debt Management Company to sort out my mess, and I finally paid it off nearly three years ago.

Getting credit was hard, anybody who accepted me charged me higher rates of interest (understandably) and limits were low.

However, my hard work has paid off- NatWest have accepted me for a credit card I wouldn't have gotten this time last year, or maybe even six months ago.

So, I've been there, wondered how I would get through the mess, and if there really was a light at the end of the tunnel.

If you are in a similar situation, you have my empathy, and it really does get better.

Hannah_10

It's nice to hear encouraging stories from time to time.

Angyles

Well done and thanks for the encouragement.

Fribourg

Me, since I found this site, I see light at the end of the tunnel, and I feel much better, even start to feel happier, something that a few weeks back seemed like a impossible dream. And all thanks to the internet, imagine in the 80's, people in the same situation, no where to find info and help like we can find here, only despear and all the rest with it. At the time I thought the Fax being the invention of the century, but now I have to say that is the internet the best invention of the century.

One thing is for sure, once my situatuion gets better and my so called credit score repaired, I won't be getting near to a credit card again, even if you pay me for it, no way jose.

derbyman2010

Fribourg wrote: »

Me, since I found this site, I see light at the end of the tunnel, and I feel much better, even start to feel happier, something that a few weeks back seemed like a impossible dream. And all thanks to the internet, imagine in the 80's, people in the same situation, no where to find info and help like we can find here, only despear and all the rest with it. At the time I thought the Fax being the invention of the century, but now I have to say that is the internet the best invention of the century.

One thing is for sure, once my situatuion gets better and my so called credit score repaired, I won't be getting near to a credit card again, even if you pay me for it, no way jose.

I'm pleased to hear you are feeling a bit now than you were a few weeks back. The site is a God-send; I echo your sentiments entirely. I wasn't born until the mid-80s but always remember people losing their houses in the early 90s.

And before you know it, what you're going through now will be a distant memory; and you'll be a lot wiser this time. I know I will be!

Ellieseleven

Thanks for the encouragement, it really helps when you at the start of this journey and afraid of what the future may hold:T

Cheesedoodles

Great post!! In 2007 I posted on this board with my money worries...£36k of debt...£450 overspend each month...life was sh**t

Yesterday I updated that post with the following comments:

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Wooow... How times have changed!!!

I am the original poster of this message, but I've changed my nickname to Cheesedoodles some time ago when I forgot the password and also figured Firsttimebuyer wasn't such a great nickname

Anyway. Since this is my post and it's nearing the 3 year anniversary of me posting this I thought I'd update you on how things are going...

In one word...GREAT!

I had £35k of unsecured debt back in 2007. Now I have a massive £180k....but that's a mortgage!!

It's been very very tough. I've lived on the breadline, only spent minimal amounts on "luxury". The only holiday I've had is our honeymoon when I got married!!! Yes, it IS possible to get married when you're in debt. So how is this possible?

Well...A few rules to guide you.

Be OPEN about your debt problem. I shared my debt problem with my (now) wife. She's got her own fair share of bad debt too and together devised a "strategy" of reducing our debt.

Scrutinize ALL spending. Do you really need that cup of costa/starbucks coffee when you're in town? Can you make your own lunch instead of buying at the office?

Be OPEN about your debt problem and Get Married! We were open about our debt problems to both sets of parents. We wanted to get married and with their support we had the most fantastic wedding! Our wedding present from guests was money towards a holiday......but I have to admit, we didn't spend it all on our honeymoon...we paid off some debt with it as well!! (What they don't know doesn't hurt them!!). (PS! I say "get married" with tongue in cheek. We were lucky in that both sets of parents contributed. This is not the case for everyone)

Use the Snowball calculator to work out which debt to pay off first. http://www.whatsthecost.com/snowball.aspx?country=uk

Contact the CCCS or similar agency to set up DMP. They are VERY helpful in starting up a DMP. They will negotiate with the creditors on your behalf. I didn't have to use CCCS in the end but my wife had to.

Once DMP is set up with CCCS....ditch them and take control yourself! Once the DMP was up and running for 2 years, she ditched CCCS and we are now managing it ourselves. Much more flexible in terms of overpayments etc. CCCS are sticklers for spreading additional payments equally amongst all creditors. We've managed to negotiate a full and final settlement 60% of the original debt for one of her creditors! CCCS wouldn't be able to do this since the payment has to be spread to all creditors.


Check your Credit report regularly. I purchased the £7/month online access from Credit Expert. Some people on this board says it's a waste of money...but for me. It was a invaluable tool...If anything it gave me some visible proof and motivation to see that my debt was going down.

Disassociate yourself financially from your other half. In my case this was very important. Yes. I had loads of debt...but in the end I never missed a payment so my credit history today is probably one of the better ones out there...I got through it without defaults,ccjs and missed payments. My wife did not.. She's on a DMP. For me to get a mortgage I had to close joint accounts and send a letter of disassociation to all 3 credit agencies. I had to "lie" and say that I was no longer with my (then girlfriend) in order for them to remove the association.....

Get some 0% deals if you can - Once your debt is reduced somewhat try to get some 0% transfer deals! Once my debt was reduced somewhat I applied for and was approved for a couple of 0% balance transfers. This saved me a LOT of money!! This may not be appropriate if you have missed payments of defaulted.

Using these rules...and with a great deal of luck as well (I got promoted into a rather good paid position in my company) I am now the proud owner of a house!!!

Next month I will be paying the last installment of the last loan!!
Apart from my mortgage, the only thing I have left to pay off now is a credit card with a balance of £2500..But it's at 0% until March next year.

So...why did I post this? Number one....to let you know that I have been there..done that. I've been down in the dumps and suffered heavily from my debt. And it IS possible to get back up again. It's hard work but it's worth it in the end.

During my "travels" i managed to get married, promotion in my job and finally...(in May this year) I bought myself a house!

I am a very happy person today....but I was not 3 years ago! 3 years is in fact quite quick for repairing bad debt and it may take longer for others. But all is possible.

Be strong and keep the faith!

spursfan14

Thank you derbyman2010. That is a really great story. For some people debt management is a very good solution.

Well done!!