Debt Free At Last!

Jaymz

Today the last payment came out of my bank account for my loan and I am officially debt free.
My story was this:

This time last year I was about £10,000 in debt with a credit card and bank loan.
Back in May 2005 aged 20 I decided to take out a loan for £10,000 with Barclays to buy a brand new sporty car which I put some of my savings towards. It got to about November and I realised that because of a stupid interest rate of more than 10% it was taking a while to chip away at the loan. The payments were about £320 per month (which wasn’t a problem as I was earning a good wage) but it felt like the next 3 years were going to be annoying with this ‘debt’ around my neck. I also had a credit card with about £1000 on it
Then I had a brainwave, I decided to pay the card off straight away with some savings I had and then take out a loan for £8000 from Nationwide (with an interest rate of 6.7%) to clear the Barclays loan. Luckily I had a nice little pot of savings which I added to the £8000 to clear the Barclays loan which was about £8800.
About a month later I discovered this forum….

I had just turned 21 and decided that enough was enough. I hated the phrase ‘being in debt’ so I decided to do something about it. To get me started I did the following:

- Lowered my mobile phone to the lowest tariff
- Made my own lunches for work
- Stopped buying pointless things I didn’t need
- Shopped around when I did need something
- Made the most of a credit card deal and paid my insurance on it, then paid the card off completely a few months later (all 0% of course)

My payments on the Nationwide loan were £245.20 a month which would of meant taking 3 years to pay off the loan (November 2008). I was saving every penny I possibly could and because of this was able to make some huge overpayments on my loan.
Huge thanks must go to dinkylou though because if it wasn’t for her I would never have known I could of overpayed on the loan and wouldn’t be debt free right now! So I can’t thank you enough!!
Some months I didn’t make an overpayment but others I was making ones of about £1000 which ended saving me so much interest.

I feel really pleased with myself; I have managed to clear about £10,000 of debt in less than a year. I don’t earn a huge amount but thanks to people on this forum and making cut backs I have managed it.

I can’t thank all of you enough for giving me inspiration (reading SS’s, James 240’s and other peoples posts).

So now I am debt free and have a nice car sat on the drive and am saving for a house deposit

mummyemma

just wanted to say a huge well done

:beer: :beer: :beer: :j :j

Emma

D&DD

Well done what a great story thanks so much for sharing it :T
It gives hope to us still plugging away to see these tales.You have learned a valuable lesson and fortunately for you at such a young age.I only wish I had Enjoy yourself now (but obviously with a little restraint..;) )
:T :T

Paige

Cogratulations. You are an inspiration.

yung

it is indeed a great relief being debt free, well done

inmypocketnottheirs

Brilliant, well done!

elantan

well done i'm really pleased for you ..wishing you all the best for the future..wont be long now till you have that new house

Starry-eyed_surprise

Well done Jaymz. May you always manage your money well and always be debt free. What a lovely situation to be in at your age. All the best.

Mrs_Sparkle

Wow, wish I'd been so clued up at your age.

Well done on your achievement.

Phoenix79_2

Fantastic :beer: You're now debt free and available to enjoy your flash new car without oweing any money on it! (I had to get rid of mine due to ridiculous running costs - typical mpg was 12!)

My overall bottom line debt is about £8.5k and i'm aiming for Christmas next year. :j

halloweenqueen_2

Congratulations! Good for you!