The Debt Free Roll Of Honour

Supertryer

jadewest94 said:

Supertryer said:

jadewest94 said:

Supertryer said:

I am so happy!
The date of your lightbulb moment: 2019 when for the second time I’m wracked up debt which I’d promised I’d never do again!
Debts at their highest
2k a huge amount for me as I do not work!
Debt-Free Date
 04/01/2021!

Pearl of wisdom:
Throw everything at debt £10 is better than £0!
Sell everything you don’t need, reduce luxuries and STOP and think!!!!

Well done! How do you intend to stay debt free again? 🎉 

I hope I’ve learnt my lesson and will be no longer buying things I don’t need.
all spare money will be going into savings!

Last time I became debt free I had no savings, and soon slipped back into ordering from catalogues which is where my debt always starts! SO no more catalogues and if I need anything I’ll save and buy it outright 💪🏻

Sorry if it came across rude, it sounded rude after I just re read it 😬 but that's a great tip! Only asking as I should be debt free by March next year so have been looking for tips 😁

No wasn’t rude at all!
I became debt free before and claimed to of learnt my lesson only to end up back in debt again!
I definitely have learnt my lesson from the same mindset!

I believe having savings will help a lot. 

IF anything crops up now I have the savings to dip into instead now so I really do believe a lessons been learnt this time around 🙏🏼

Zulu_Dawn

Remember me!

You would have to be quite old to have come across me but I joined this forum in 2006 and finally posted my budget in 2007.  I have barely posted in the last few years but this forum was a huge part of my recovery and vital to me in the earliest stages of my journey.  As a result there was no way I was going to let the moment that I become debt free pass without finally posting onto this thread.
My lightbulb moment came in 2006 when after years of gambling, using mainly the accessibility of credit cards to fund my habit, I finally got to the stage where I was rejected for a new card (by Goldfish I think).  That then led to a series of other rejections for additional credit and my finances rapidly unravelled in front of me.  I had accumulated approx. 24 credit cards, a number of loans, three overdrafts as well as a huge mortgage and several family loans.  My total unsecured debt was £172,605, my mortgage was of similar value to my property and my monthly minimum payments to credit cards were in excess of £5k.  I had been borrowing from Peter to pay Paul for years.  What is more, I had told nobody of my gambling habit or my debt.  It was a time of extreme worry and I could not see a way out of it.  Clearly I had to stop gambling and I did this with the help of GA and some great councillors in 2006.  I then had to confront my debt.  I used CCCS (now Stepchange) for advice as well as this forum and eventually decided to tackle the whole thing myself.
I wrote to all my creditors, enclosing my cut up cards and told them I couldn't pay the minimum payment any more. I arranged to pay them all a pound and asked them to freeze interest whilst we sorted something out.  I kept one bank account separate with whom I had no debt or credit cards and got my salary paid there and started negotiating a budget and a monthly payment with every one of my creditors.
Because I did it all myself, there was a certain amount of flexibility but it took about a year, numerous calls, budgets, letters before all creditors agreed to freezing interest and a monthly payment plan.  Some creditors were awful (We're going to sue you, take your house away, take your furniture, tell your work), or inflexible (we want you to pay "X" regardless of your budget) but others were relatively easy to deal with.  I kept everyone informed, provided them all with loads of information and budgets and regular updates.  I was always pleasant and tried to be helpful.  The debts changed hands numerous times, my credit score was destroyed, but nobody sued me, or put a charge on my house or visited my house despite my debt being totally unaffordable to me and all interest was eventually frozen.  I didn't even get a CCJ.  I ended up with 28 separate monthly payments at a level that was just about affordable (after using all the hints and tips from this website).
The next 14 years went slowly but as time went by and my salary increased, the level of debt become more affordable, the number of communications with creditors become less and as I got little pockets of money, I was able to reduce the balances further.
I set up all payments myself on standing order and I'm proud to say I never missed a payment to any creditor.  Full and final settlements were never very useful to me and although I tried a few times, the deals I was offered were all either rubbish or unaffordable or both. 
My last creditor standing was PRA Group ( a legacy Barclaycard) and I managed to persuade them to take £3,200 reduced from £3,400 (after paying them £40 every month for 13 years) to clear my balance and that was it - I was debt free.  It only took 14 years.
What did I learn? 
Firstly work out why you got yourself into debt and sort out yourself so you don't stay there.  For me it was stopping gambling.  For others it will be something else.
Secondly, communicate!  it was through all those calls and communications that I got my creditors to stay with me and not sue me.  Ultimately I had broken their terms and despite my thoughts about lending money to people who patently can't afford it, the debt was ultimately my responsibility and I recognised I had to work with them not against them.
Thirdly, "stuff" is overrated.  I have lived very frugally, barely bought any "stuff" in the last 14 years and do not feel I've missed out on anything.   To misquote Kate Moss, "No possession looks or feels as good as debt-free".
Fourthly, this website is amazing.  Read it, learn from it.  There are bargains and savings for everything.
Finally I know how lucky I have been to get through it.  I have worked continuously, done some lowly jobs as well as some better paid stuff but have always been able to feed myself, keep warm and stay sane.  I've put my family first financially and I feel I've now repaid them for my earlier stupidity.
Sorry this is so long but I will stop now and suffice to say that if I can dig myself out of a big debt hole, so can you.  Best of luck, and stay positive.

ZD

https://forums.moneysavingexpert.com/discussion/476482/finally-deep-breath-zulu-dawn-soa/p1

Supertryer

Zulu_Dawn said:

Remember me!

You would have to be quite old to have come across me but I joined this forum in 2006 and finally posted my budget in 2007.  I have barely posted in the last few years but this forum was a huge part of my recovery and vital to me in the earliest stages of my journey.  As a result there was no way I was going to let the moment that I become debt free pass without finally posting onto this thread.
My lightbulb moment came in 2006 when after years of gambling, using mainly the accessibility of credit cards to fund my habit, I finally got to the stage where I was rejected for a new card (by Goldfish I think).  That then led to a series of other rejections for additional credit and my finances rapidly unravelled in front of me.  I had accumulated approx. 24 credit cards, a number of loans, three overdrafts as well as a huge mortgage and several family loans.  My total unsecured debt was £172,605, my mortgage was of similar value to my property and my monthly minimum payments to credit cards were in excess of £5k.  I had been borrowing from Peter to pay Paul for years.  What is more, I had told nobody of my gambling habit or my debt.  It was a time of extreme worry and I could not see a way out of it.  Clearly I had to stop gambling and I did this with the help of GA and some great councillors in 2006.  I then had to confront my debt.  I used CCCS (now Stepchange) for advice as well as this forum and eventually decided to tackle the whole thing myself.
I wrote to all my creditors, enclosing my cut up cards and told them I couldn't pay the minimum payment any more. I arranged to pay them all a pound and asked them to freeze interest whilst we sorted something out.  I kept one bank account separate with whom I had no debt or credit cards and got my salary paid there and started negotiating a budget and a monthly payment with every one of my creditors.
Because I did it all myself, there was a certain amount of flexibility but it took about a year, numerous calls, budgets, letters before all creditors agreed to freezing interest and a monthly payment plan.  Some creditors were awful (We're going to sue you, take your house away, take your furniture, tell your work), or inflexible (we want you to pay "X" regardless of your budget) but others were relatively easy to deal with.  I kept everyone informed, provided them all with loads of information and budgets and regular updates.  I was always pleasant and tried to be helpful.  The debts changed hands numerous times, my credit score was destroyed, but nobody sued me, or put a charge on my house or visited my house despite my debt being totally unaffordable to me and all interest was eventually frozen.  I didn't even get a CCJ.  I ended up with 28 separate monthly payments at a level that was just about affordable (after using all the hints and tips from this website).
The next 14 years went slowly but as time went by and my salary increased, the level of debt become more affordable, the number of communications with creditors become less and as I got little pockets of money, I was able to reduce the balances further.
I set up all payments myself on standing order and I'm proud to say I never missed a payment to any creditor.  Full and final settlements were never very useful to me and although I tried a few times, the deals I was offered were all either rubbish or unaffordable or both. 
My last creditor standing was PRA Group ( a legacy Barclaycard) and I managed to persuade them to take £3,200 reduced from £3,400 (after paying them £40 every month for 13 years) to clear my balance and that was it - I was debt free.  It only took 14 years.
What did I learn? 
Firstly work out why you got yourself into debt and sort out yourself so you don't stay there.  For me it was stopping gambling.  For others it will be something else.
Secondly, communicate!  it was through all those calls and communications that I got my creditors to stay with me and not sue me.  Ultimately I had broken their terms and despite my thoughts about lending money to people who patently can't afford it, the debt was ultimately my responsibility and I recognised I had to work with them not against them.
Thirdly, "stuff" is overrated.  I have lived very frugally, barely bought any "stuff" in the last 14 years and do not feel I've missed out on anything.   To misquote Kate Moss, "No possession looks or feels as good as debt-free".
Fourthly, this website is amazing.  Read it, learn from it.  There are bargains and savings for everything.
Finally I know how lucky I have been to get through it.  I have worked continuously, done some lowly jobs as well as some better paid stuff but have always been able to feed myself, keep warm and stay sane.  I've put my family first financially and I feel I've now repaid them for my earlier stupidity.
Sorry this is so long but I will stop now and suffice to say that if I can dig myself out of a big debt hole, so can you.  Best of luck, and stay positive.

ZD

https://forums.moneysavingexpert.com/discussion/476482/finally-deep-breath-zulu-dawn-soa/p1

Absolutely incredible!!!!
You’ve done amazing!!!! I’m sure you’ll help someone too who may come across this and see that it can be done!! Enjoy your debt free life!

I vaguely remember you I’m certain from when I was on here many moons again. If it wasn’t you there is someone who was in an identical situation.

beanielou

Zulu_Dawn said:

Remember me!

You would have to be quite old to have come across me but I joined this forum in 2006 and finally posted my budget in 2007.  I have barely posted in the last few years but this forum was a huge part of my recovery and vital to me in the earliest stages of my journey.  As a result there was no way I was going to let the moment that I become debt free pass without finally posting onto this thread.
My lightbulb moment came in 2006 when after years of gambling, using mainly the accessibility of credit cards to fund my habit, I finally got to the stage where I was rejected for a new card (by Goldfish I think).  That then led to a series of other rejections for additional credit and my finances rapidly unravelled in front of me.  I had accumulated approx. 24 credit cards, a number of loans, three overdrafts as well as a huge mortgage and several family loans.  My total unsecured debt was £172,605, my mortgage was of similar value to my property and my monthly minimum payments to credit cards were in excess of £5k.  I had been borrowing from Peter to pay Paul for years.  What is more, I had told nobody of my gambling habit or my debt.  It was a time of extreme worry and I could not see a way out of it.  Clearly I had to stop gambling and I did this with the help of GA and some great councillors in 2006.  I then had to confront my debt.  I used CCCS (now Stepchange) for advice as well as this forum and eventually decided to tackle the whole thing myself.
I wrote to all my creditors, enclosing my cut up cards and told them I couldn't pay the minimum payment any more. I arranged to pay them all a pound and asked them to freeze interest whilst we sorted something out.  I kept one bank account separate with whom I had no debt or credit cards and got my salary paid there and started negotiating a budget and a monthly payment with every one of my creditors.
Because I did it all myself, there was a certain amount of flexibility but it took about a year, numerous calls, budgets, letters before all creditors agreed to freezing interest and a monthly payment plan.  Some creditors were awful (We're going to sue you, take your house away, take your furniture, tell your work), or inflexible (we want you to pay "X" regardless of your budget) but others were relatively easy to deal with.  I kept everyone informed, provided them all with loads of information and budgets and regular updates.  I was always pleasant and tried to be helpful.  The debts changed hands numerous times, my credit score was destroyed, but nobody sued me, or put a charge on my house or visited my house despite my debt being totally unaffordable to me and all interest was eventually frozen.  I didn't even get a CCJ.  I ended up with 28 separate monthly payments at a level that was just about affordable (after using all the hints and tips from this website).
The next 14 years went slowly but as time went by and my salary increased, the level of debt become more affordable, the number of communications with creditors become less and as I got little pockets of money, I was able to reduce the balances further.
I set up all payments myself on standing order and I'm proud to say I never missed a payment to any creditor.  Full and final settlements were never very useful to me and although I tried a few times, the deals I was offered were all either rubbish or unaffordable or both. 
My last creditor standing was PRA Group ( a legacy Barclaycard) and I managed to persuade them to take £3,200 reduced from £3,400 (after paying them £40 every month for 13 years) to clear my balance and that was it - I was debt free.  It only took 14 years.
What did I learn? 
Firstly work out why you got yourself into debt and sort out yourself so you don't stay there.  For me it was stopping gambling.  For others it will be something else.
Secondly, communicate!  it was through all those calls and communications that I got my creditors to stay with me and not sue me.  Ultimately I had broken their terms and despite my thoughts about lending money to people who patently can't afford it, the debt was ultimately my responsibility and I recognised I had to work with them not against them.
Thirdly, "stuff" is overrated.  I have lived very frugally, barely bought any "stuff" in the last 14 years and do not feel I've missed out on anything.   To misquote Kate Moss, "No possession looks or feels as good as debt-free".
Fourthly, this website is amazing.  Read it, learn from it.  There are bargains and savings for everything.
Finally I know how lucky I have been to get through it.  I have worked continuously, done some lowly jobs as well as some better paid stuff but have always been able to feed myself, keep warm and stay sane.  I've put my family first financially and I feel I've now repaid them for my earlier stupidity.
Sorry this is so long but I will stop now and suffice to say that if I can dig myself out of a big debt hole, so can you.  Best of luck, and stay positive.

ZD

https://forums.moneysavingexpert.com/discussion/476482/finally-deep-breath-zulu-dawn-soa/p1

Amazingly awesome.
Be proud.
I salute you   

BlueJ94

Supertryer said:

jadewest94 said:

Supertryer said:

jadewest94 said:

Supertryer said:

I am so happy!
The date of your lightbulb moment: 2019 when for the second time I’m wracked up debt which I’d promised I’d never do again!
Debts at their highest
2k a huge amount for me as I do not work!
Debt-Free Date
 04/01/2021!

Pearl of wisdom:
Throw everything at debt £10 is better than £0!
Sell everything you don’t need, reduce luxuries and STOP and think!!!!

Well done! How do you intend to stay debt free again? 🎉 

I hope I’ve learnt my lesson and will be no longer buying things I don’t need.
all spare money will be going into savings!

Last time I became debt free I had no savings, and soon slipped back into ordering from catalogues which is where my debt always starts! SO no more catalogues and if I need anything I’ll save and buy it outright 💪🏻

Sorry if it came across rude, it sounded rude after I just re read it 😬 but that's a great tip! Only asking as I should be debt free by March next year so have been looking for tips 😁

No wasn’t rude at all!
I became debt free before and claimed to of learnt my lesson only to end up back in debt again!
I definitely have learnt my lesson from the same mindset!

I believe having savings will help a lot. 

IF anything crops up now I have the savings to dip into instead now so I really do believe a lessons been learnt this time around 🙏🏼

Oh good!  
That's what im afraid of, thinking Ive learnt but actually havent..

MrDebtWarrior

Lightbulb moment: Too many to count but the ultimate one was Jan 2019

Debts at highest: £30,000

Debt-Free Date: 27thJan 2021

This may all come as a ramble so apologies, I'm just writing as it comes.

I've been in some sort of debt since 2005. It started with an overdraft, then a credit card, then a loan to cover the overdraft and CC, then a top up loan...... spiral spiral. On top of living outwith my means, I bought a car which I should never have been able to buy. I was given a loan that was 150% of my salary, no issues, into the bank, applied, approved, done. Being young, carefree, thinking it's fine I can afford the payments.

After a couple of years, the realisation began to dawn, this was the first of many LBMs. I sold the car, paid off the loan which left a fair amount on credit cards. A few years of moving from balance transfer to balance transfer, a consolidation loan, more credit cards...... I still wasn't out of my bad habits.

Fast forward to January 2019, I'm a home-owner with my partner, at this point we had around £30k of debt. Split between car, credit cards, family loans. This was the proper LBM, we were due to be married in 3 months and the wedding had been mainly put on cards.

The worry had reached unbelievable levels, we were stressed, anxious, debt really puts your mental health through the ringer.

We weren't as young as we used to be, £30k was a mountain and the thought of years of struggle was tough.

Couple of resources helped us, this board of course, even though we were mainly readers, it did really help. Dave Ramsay also helped, even though we didn't follow his methods, his youtube videos helped us keep on the path, we were 'sick and tired of being sick and tired'.

Debts were prioritised into interest rate first, which put car top, the CCs and family loans were interest free.

We dismantled our monthly budgets, cut all unnecessary spending - no sky, no netflix/subscriptions, sim only phones, cut supermarket bills, no holidays, limited 'fun' budget, limited clothes budget. All leftover cash went towards debt.

We paid off the car, £8.5k, which was amazing. We now owned the car outright and had escaped the car finance trap. It's a 2014 car which we like, this was the reason we kept it instead of selling.

Next was the credit cards (5), we put them in order of when interest would be due and put all extra cash into them, slowly we knocked them off one by one until one was remaining which was the last thing to be paid off.

The family debt, we had continued to pay a fixed amount every month, we are so lucky that my parents did not need the money back quickly (as it was near £10k). Paying that fixed payment eventually brought the balance to a level where we could pay the remainder off and still have time to pay the final credit card before interest kicked in.

Then the time came when we had one remaining CC and we were in a truly strange position of having enough money to pay a good amount towards debt and also build an emergency fund.

Today, I paid off that final balance and have already called to close the account. We are free.

For the first time in 16 years, when I get paid next month, I will not need to pay anything to a loan, a credit card, an overdraft, to family. I've wondered what this moment would feel like for a long time, I thought I would be ecstatic but I'm actually really emotional. It's been so tough at times as the mental stress and anxiety of debt can consume your world, whilst on the outside pretending that everything is fine.

So I'm not ashamed to admit, I've had a cry, I think I had to let it out to begin to move on from all those years.

To pay off £30k in less than 2 years seemed impossible. We have both been so fortunate to have full time jobs which enabled us to pay a high amount towards debt, anyone who is doing this whilst out of work, or on their own, I can only say how much I admire and respect you as I can't imagine how hard it is.

There were so many ups and downs and roadblocks and set backs which would take me ages to write about but I suppose my main message is, keep going, it took me 16 years to get here, it can be done.

madaboutspots

Awesome job! Great post. Good fortune for the future for you both. 

beanielou

MrDebtWarrior said:

Lightbulb moment: Too many to count but the ultimate one was Jan 2019

Debts at highest: £30,000

Debt-Free Date: 27thJan 2021

This may all come as a ramble so apologies, I'm just writing as it comes.

I've been in some sort of debt since 2005. It started with an overdraft, then a credit card, then a loan to cover the overdraft and CC, then a top up loan...... spiral spiral. On top of living outwith my means, I bought a car which I should never have been able to buy. I was given a loan that was 150% of my salary, no issues, into the bank, applied, approved, done. Being young, carefree, thinking it's fine I can afford the payments.

After a couple of years, the realisation began to dawn, this was the first of many LBMs. I sold the car, paid off the loan which left a fair amount on credit cards. A few years of moving from balance transfer to balance transfer, a consolidation loan, more credit cards...... I still wasn't out of my bad habits.

Fast forward to January 2019, I'm a home-owner with my partner, at this point we had around £30k of debt. Split between car, credit cards, family loans. This was the proper LBM, we were due to be married in 3 months and the wedding had been mainly put on cards.

The worry had reached unbelievable levels, we were stressed, anxious, debt really puts your mental health through the ringer.

We weren't as young as we used to be, £30k was a mountain and the thought of years of struggle was tough.

Couple of resources helped us, this board of course, even though we were mainly readers, it did really help. Dave Ramsay also helped, even though we didn't follow his methods, his youtube videos helped us keep on the path, we were 'sick and tired of being sick and tired'.

Debts were prioritised into interest rate first, which put car top, the CCs and family loans were interest free.

We dismantled our monthly budgets, cut all unnecessary spending - no sky, no netflix/subscriptions, sim only phones, cut supermarket bills, no holidays, limited 'fun' budget, limited clothes budget. All leftover cash went towards debt.

We paid off the car, £8.5k, which was amazing. We now owned the car outright and had escaped the car finance trap. It's a 2014 car which we like, this was the reason we kept it instead of selling.

Next was the credit cards (5), we put them in order of when interest would be due and put all extra cash into them, slowly we knocked them off one by one until one was remaining which was the last thing to be paid off.

The family debt, we had continued to pay a fixed amount every month, we are so lucky that my parents did not need the money back quickly (as it was near £10k). Paying that fixed payment eventually brought the balance to a level where we could pay the remainder off and still have time to pay the final credit card before interest kicked in.

Then the time came when we had one remaining CC and we were in a truly strange position of having enough money to pay a good amount towards debt and also build an emergency fund.

Today, I paid off that final balance and have already called to close the account. We are free.

For the first time in 16 years, when I get paid next month, I will not need to pay anything to a loan, a credit card, an overdraft, to family. I've wondered what this moment would feel like for a long time, I thought I would be ecstatic but I'm actually really emotional. It's been so tough at times as the mental stress and anxiety of debt can consume your world, whilst on the outside pretending that everything is fine.

So I'm not ashamed to admit, I've had a cry, I think I had to let it out to begin to move on from all those years.

To pay off £30k in less than 2 years seemed impossible. We have both been so fortunate to have full time jobs which enabled us to pay a high amount towards debt, anyone who is doing this whilst out of work, or on their own, I can only say how much I admire and respect you as I can't imagine how hard it is.

There were so many ups and downs and roadblocks and set backs which would take me ages to write about but I suppose my main message is, keep going, it took me 16 years to get here, it can be done.

Awesome result.

Milestones

a. The date of your lightbulb moment

December 2016

b. Debts at their highest

£37.5K

c. Debt-Free Date

Today 28th January 2021

d. Your one perl of wisdom.

Weird, now I've got here I don't know what to say, how to some it all up, over 22 years of battling - maybe I can't so here's just a snippet of what I learned.  4 years ago marked a turning point, I knew it was different but I'll be honest I was looking up at a mountain, worst I had to bring my family with me, I didn't know how was I going to balance taking on that mountain whilst still providing all the things we would need. I couldn't see the summit but I knew I had to start climbing, so I did.  My spreadsheet was improved and I accounted for every single penny, for every single day of every single month, paying down the debt was slow at first and there were unexpected spends but this time I had a budget - even for that.  Not only was I now aware of where the money went but I planned it out for the entire year ahead, sure there were cut backs and there were plenty of things where we just didn't spend the money, but we would have before. Mostly I was driven by getting savings on everyday living expenses\bills (I made lots of savings, this site helped a lot) and getting the most out of an allocated budget for the family. I even included budgets for some luxuries like a holiday, but now we saved for it and stuck to the budget and hey when you really know the limit it's amazing how hard you try to get the most out of it. 

What I'm trying to say is that everyone has their own path, a lot of strategies are no spend on anything except absolute essentials and I think that works for a lot of scenarios, but for some that are looking at a longer period of time and have others to consider in the strategy, not spending money on anything for years is unrealistic, so my advice is plan it out and perhaps include some things that aren't essential but are important in your life.  For instance it would have been nice to see the bathroom re-done but it wasn't important enough for me so the bathroom is the same as it was 4 years ago, but with my careful budget, spending quality time with my family experiencing a bit of the world together was important enough to be included several times, even though it delayed this date.  Life before, during and after debt is still about priorities, so it's important to know what truly is and equally what is not yours, where ever you are on the journey.

These forums are inspiring, without them and the people that contribute I wouldn't be celebrating today and of course the biggest tribute goes to my family.  Thank You.

findingthisdifficult

Date of Lightbulb Moment - There were a few false starts but around January 2015
Debts at their highest - Around £30k at time of lightbulb moment
Debt Free Date - 29th January 2021
One Pearl of Wisdom - Live your own life, one you can afford - don't try and keep up with the Joneses
Forum Threads that helped me - so many!  One particular thread I read likened paying off debt to emptying a lake with a teaspoon and at times it really felt like that.
My Debt Free Diary https://forums.moneysavingexpert.com/discussion/5956181/wobbling-my-way-out-of-debt#latest
and what a wobbly journey it was.

I remember looking at this thread in the early days and thinking I would never make it over here, I was too busy living a life I couldn't afford buying stuff I didn't need.  
I have had unsecured debt for 16 years, too many consolidations later and a worry that since owning a house (last 5 years) that I couldn't afford to fix things if they went wrong, I pulled my socks up and started to find my way out of debt. 
Now to figure out a life of not paying off debt and trying to stay out of it might be easier said than done given that we're about to look at buying our 'forever' home.