The Debt Free Roll Of Honour

blu3sky

Another long-time lurker finally debt-free!!!! Can't believe it's my turn to post here :j

Lightbulb moment: April 2015, pushing credit limit on a card that I'd gotten for 'emergencies only'...

Debts at their highest: £2700- felt like a lot as a student working part-time in London!

Debt-Free Date: 26th August 2016 :money:
I've also saved £2000 in a Help to Buy ISA so I could have paid it off a bit sooner but I found saving at the same time as paying off debt really motivating!
(my debt was 0% so that's why I broke Martin's rule of paying off debts before saving )

Pearl(s) of wisdom:
Track your spending
There's a reason why this is a pearl of wisdom for so many people! It's really hard to cut back/set a realistic budget if you don't have a good grasp of how much you are actually spending. I used YNAB ('You need a budget' budgeting software), which I would highly recommend, but a paper spending diary/spreadsheet/counting up receipts would work too. The important thing is facing up to the truth of how much those top-up shops/flat whites/Diet Cokes/lunchtime trips to Boots/are costing you

Baby steps are ok
I started out by trying to pay off massive chunks of debt at a time and would give up completely when I inevitably had to spend back most of what I'd paid off... Remember that it took a while to build up the debt so it's ok if it takes a while to pay it back! To start with, I focused on one thing each month, e.g. keeping my grocery spending to less than £80 or only buying lunch once a week. Once you've had a few successes then you'll feel more confident and less inclined to give up when things don't go quite to plan.

Links to the MSE guides that helped you
Switched using the Cheap Energy club, Help to Buy ISAs guide, The Demotivator tool

Which forum threads helped you
Everything on the Old-Style board, especially the monthly Grocery Challenge. Reading through all the comments on SOAs, lurking on people's Debt-Free diaries...

lsmcal1984

The date of your lightbulb moment: mid-2011 when I knew I couldn't carry on living from salary to salary and never having any savings.

Debts at their highest: £50k, a lot from my early 20s: including very high interest London Scottish loan with CCJ; several high interest credit cards (Vanquis, Aqua, Capital One) and a high interest Co-op bank loan (25%) - due to CCJ; £8k student loans (from 2002); several defaults on Payday loans; GAINs on two high interest store cards and defaults; Hire Purchase account with £3k balance and 50% APR; 25% APR overdraft.

Debt-Free Date: 26th July 2016

Pearls of wisdom:

Fail to plan, plan to fail: If you don't track your spending with a budget and set yourself spending limits then you'll never regain control to become debt free.

Do you research: Two books - Simple Wealth and The Money Secret - really helped me understand how money snowballs both with debt and savings - the secret is using interest to your advantage, and not "keeping up with the Joneses".

Understand the true cost of any debt you will take on: And how much you will actually pay back.

Examine every debt you have and challenge it: I had several debts and defaults written off through negotiation, and others I had interest frozen. Some people say its controversial but when procedures weren't followed, the debts are technically unenforceable. It's a lot of effort but it can pay off and save you thousands:
My bank loan had £2.5k interest refunded because they hadn't sent an annual statement to me as required under the Credit Consumer Act.
The London Scottish Loan turned out to be unenforceable when I challenged their endless spamming letters, and it was written off.
I got a few over the limit charges on Vanquis, that I successfully had refunded when I requested them.
I got my bank charges refunded when I challenged the bank
You have to muster the energy to take control.

Links to the MSE guides that helped you: Help to Buy ISA, Energy Switching, Coupons

Which forum threads helped you: Grocery Challenge, Debt Free Wannabe

And finally, remember this: Debt is a terrible master but an excellent servant.

pineconesjay

Lightbulb Moment: I'd have to say I finally got really serious about debt paying around 26 December 2015. It has always been one of those things that I was 'trying' to do - trying to get out of debt - but starting 1 January 2016 was when I really kicked it into gear.

Debts at their highest: I started the year with $7,500 in debt, but before that we had been in debt for 10 years, sometimes as high as $25,000AUD, but it went up and down a lot. (Yes, trying to get out of debt while also accumulating more on a different card, sigh)

Debt Free Date: 9 June 2016.

Pearls of Wisdom: Cut up the cards, don't add more debt. Keep an Emergency Fund. Don't pay more towards your debt than you can afford - if you get too enthusiastic and end up having no money for groceries then you've paid too much. Read, read, read, to keep you motivated. (Read Mr Money Mustache - Your Debt is an Emergency). Plan, plan, plan, to keep you on track. Visualise your life without debt. Live frugally. Buy second hand items, but only if you really need them. Healthy foods are cheaper than junk foods. Cook from scratch as much as possible.

naff123

The date of your lightbulb moment 2012 it took 1 or 2 attempts to get going after getting stung by an expensive DMP that charged £25 a month on debt payments of £126.00 and with losing jobs etc but persistence paid off. Also found it incredibly hard to keep motivated whilst battling depression

Debts at their highest - 2011 about £7500-8000

Debt-Free Date 14/09/2016

Your one perl of wisdom.
If you haven't got the money don't buy it! Save up, the balance builds quicker than you think with a bit of careful buying and finding bargains, reducing your bills! Also just because you want something now will it still be useful in 2-5 years? If the answer is no then you could probably go without! Finally for the love of god please please please do not bury your head and ignore it because then the balances increase and pressure builts and something has got to give and 99% of the time it'll be you that breaks

Links to the MSE guides that helped you - I wish I knew about some sooner I can't think of any off the top of my head sorry

Which forum threads helped you - Self Employment, Debt Free Wannabee and Freebies

Gazza1964

Got the letter from Stepchange today.....

"Congratulations! You're debt free"


Lightbulb moment: July 2012

Debt at highest: £16119

Debt-Free Date: September 2016

Pearl of wisdom: I don't really know. I have been lucky to have been supported by my partner, to have found this website and to have been directed to Stepchange. I cant tell you anything you don't already know by finding your way here.


Thank you to everyone.

C&S

Lightbulb Moment: March 2011 - realised that our outgoings were now going to be more than our income. Stupidly thought about taking on more debt to consolderate our credit cards into one smaller payment that we would have paid for years. Then phoned Payplan and an advisor told me how credit card companies work and how to move forward which in our case was a DMP.

Debts at their highest: brace yourself! £72,210.62 (mine and wife's credit cards)

Debt Free Date: 1st November 2016

Pearls of Wisdom: Don't have credit! No debt equals less bills to pay so you'll have the money to save for something quickly. But If you do & transfer your credit card balance to a better deal to save money, cancel the original card. You'll just spend on the original one too and end up with 9 cards like we did!

It's been a long road and I remember seeing posts on forums where people were about to or had just become debt free and just couldn't imagine it. The thought of being debt free gave a similar feeling to imagining winning the lottery. In just 6 weeks we'll be there and then we can start living our lives!:j It is possible even with £70k of debt!!

SpekySquarehead

Lightbulb Moment:
Valentines Day, 2016. I went overboard in spoiling my GF in an attempt to maintain the lifestyle that the money on my CC’s made me look like I had. As I handed her various gifts in the room of a fancy hotel I was getting a sinking feeling just picturing the amount on my CC’s.

Debts at their highest:
Just over £5k

Debt-Free Date:
Today, 29th September 2016

Your one perl of wisdom:
YNAB. I read a lot of good reviews and thought it was too good to be true. I dived right in with their podcasts, webinars, user guides etc and it completely transformed how I look at money and soon brought me out the depressed state I was in as I felt in control.

Links to the MSE guides that helped you:
The Daily O/S Thread where everyone was super friendly and helpful every morning. It’s my new routine;
https://forums.moneysavingexpert.com/discussion/5532898
What small DFW things will you do this week;
https://forums.moneysavingexpert.com/discussion/5531312
No Spending Turtles;
https://forums.moneysavingexpert.com/discussion/5517424

And if you had a debt diary on the Debt-Free Wannabe board (DFW), a link to it:
My Debt Free Diary, and what will be my savings dairy;
https://forums.moneysavingexpert.com/discussion/comment/71375204#Comment_71375204

eco_farmer

5 Yrs ago after some big ticket spending we were informed/realised that our DS was drowning in the state sector. so we have faced 5 yrs of paying school fees whilst paying down the debt on variable self employed incomes.


we are very blessed in our avg incomes but there have been some real dark days and frustrations along the way.

debt at its highest was over 15K
This site has been a real inspiration i have followed much of the advice I have read on here and its kept me going at times when the debt seemed to be going the wrong way.


My real reason for posting is to thank the following dairy keepers for taking the time to regularly post their ups and downs. They are a true inspiration to those whom follow them.
cazmanian_minx

Brogden

Safehouse

Stressed Steph

NoOneAround

Ali OK

misstara

-please-let-me-be-lucky

and finally this thread itself.Dreaming of being able to post on here myself has been a real motivator. To everybody still on your Debt free journey keep on keeping on you will get there!


eco

NewcastlePaul

Lightbulb moment - 31st December 2004


Debt at Highest - £128,596.72


Debt free Date - 1st October 2016


Pearl of Wisdom - Don't gamble, don't bury head in the sand, Don't bottle everything up. Tell someone !!!


Helpful sites - This forum, Stepchange,


I contacted Stepchange and today after 12 years of a DMP I am finally debt free. I was also lucky enough to have the light bulb moment to claim back the PPI below. I then used that cash to make Full & Final offers and clear nearly 43k worth of debt




Current PPI Status as of 1st September 2016

£9,262 Cheque Received (Lloyds Tsb)
£8,190 Cheque Received (Barclays)
£5,708 Bank Transfer Received (HSBC)
£1,536 Cheque Received (Bank Of Scotland)
£1,122 Cheque Received (Barclaycard)
£0,625 Cheque Received (MBNA)
£0,557 Cheque Received (Barclaycard - MS)
£0,206 Bank Transfer Received (NRAM)
£0,028 Cheque Received (Capital One)

£0,317 Cheque Received (Goldfish)

£1,906 Balance Reduced (NRAM)
£0,563 Balance Reduced (Monument)


£27,567 - Total Received So Far
£02,354 - Total Offset against Balances
£29,921 - Grand Total




I am today as of 1st October 2016 my last Stepchange DMP Payment has left my account and I am totally debt free.


I never ever thought this day would come and I am so grateful that I discovered Stepchange (CCCS then) and this board.


It helped me get my life back and I will never ever forget that.


Cheers all

daveg10

Hi, well last payment went out on 26th September and all being well that's it no more DMP!

Lightbulb Moment December 2009

Debt at highest £44,500

Debt Free Date Now hopefully!!

Pearl of wisdom read these forums for invaluable advice, support and information. Don't be scared or bullied by banks and corporations!

Helpful sites This one, payplan, stepchange

Actually ended up paying back £47,600 due to some interest added by certain creditors and knowing what I know now I simply wouldn't have paid them anything until interest was stopped, accounts were defaulted and passed on. But you live and learn and my wife and I have most definitely learnt our lesson! :beer: