The Debt Free Roll Of Honour

LegoHead

a. The date of your lightbulb moment

27th October 2021. Can’t remember the exact details, but knew I had to start taking control and doing something different. I was just throwing all my money at the debts and leaving myself with no money for food or play each month. This was getting me down and if I didn’t take control I would have probably given up and spiralled back into debt. I was massively overwhelmed at this point and just knew I needed help. I didn't know what help I needed but just asking for help was the best decision I ever made.

b. Debts at their highest

About £29k (not including student loan) in December 2020, but there was a lot more before this too. Student loan was paid off in 2021 which must have been about £14,000 that I had since 2006. . I have never been debt free since 2000 just after I left school.

c. Debt-Free Date

Today 5th April 2022

d. Your one pearl of wisdom.

Forgive yourself and be honest with yourself. Yes, you overspent and got yourself in a lot of debt, but you are here and trying to get out of it. Allow yourself to indulge some unnecessary spends without guilt, plan this into your budget.

e. Links to the MSE guides that helped you

There are too many I have read over the last year.

f. Which forum threads helped you

All of the diaries. One thing I noticed is that there are a core group of people that appear in all the threads that are the key to all the help. Without these people I would not have got where I am today. It was the people that helped. A few have stuck with me all the way through and kept me accountable and even just a single comment of guidance and encouragement has helped massively too. So thanks to everyone from my diary thread in order of appearance: 

curlytop12, CatherineL, madaboutspots, RobM99, NeverendingDMP, TheAble, kimwp, Booksandplants, jimjames, enthusiasticsaver, MalMonroe, tealady, gizmo111, josephine82, Andyjflet, EssexHebridean, ohdearhowdidthathappen, capuchin, Graham1982, Naomim, theoretica, vampirotoothus, Drawingaline, savingholmes, Petal88, jusferbrowsing, stymied, moving_forward, Humdinger1, joedenise, GeorgianaCavendish, powerspowers

g. And if you had a debt diary on the Debt-Free Wannabe board (DFW), a link to it

https://forums.moneysavingexpert.com/discussion/6220690/starting-to-budget-after-years-of-wishful-thinking/p21

shell16

LegoHead said:

a. The date of your lightbulb moment

27th October 2021. Can’t remember the exact details, but knew I had to start taking control and doing something different. I was just throwing all my money at the debts and leaving myself with no money for food or play each month. This was getting me down and if I didn’t take control I would have probably given up and spiralled back into debt. I was massively overwhelmed at this point and just knew I needed help. I didn't know what help I needed but just asking for help was the best decision I ever made.

b. Debts at their highest

About £29k (not including student loan) in December 2020, but there was a lot more before this too. Student loan was paid off in 2021 which must have been about £14,000 that I had since 2006. . I have never been debt free since 2000 just after I left school.

c. Debt-Free Date

Today 5th April 2022

d. Your one pearl of wisdom.

Forgive yourself and be honest with yourself. Yes, you overspent and got yourself in a lot of debt, but you are here and trying to get out of it. Allow yourself to indulge some unnecessary spends without guilt, plan this into your budget.

e. Links to the MSE guides that helped you

There are too many I have read over the last year.

f. Which forum threads helped you

All of the diaries. One thing I noticed is that there are a core group of people that appear in all the threads that are the key to all the help. Without these people I would not have got where I am today. It was the people that helped. A few have stuck with me all the way through and kept me accountable and even just a single comment of guidance and encouragement has helped massively too. So thanks to everyone from my diary thread in order of appearance: 

curlytop12, CatherineL, madaboutspots, RobM99, NeverendingDMP, TheAble, kimwp, Booksandplants, jimjames, enthusiasticsaver, MalMonroe, tealady, gizmo111, josephine82, Andyjflet, EssexHebridean, ohdearhowdidthathappen, capuchin, Graham1982, Naomim, theoretica, vampirotoothus, Drawingaline, savingholmes, Petal88, jusferbrowsing, stymied, moving_forward, Humdinger1, joedenise, GeorgianaCavendish, powerspowers

g. And if you had a debt diary on the Debt-Free Wannabe board (DFW), a link to it

https://forums.moneysavingexpert.com/discussion/6220690/starting-to-

budget-after-years-of-wishful-thinking/p21

@LegoHead This is fantastic news well done!  You have done so well clearing that debt in such a quick time!  How did you do this did you throw everything spare, did you side hustle? 

LegoHead

I sold a car for around £10k, had it two years and sold for £10 more than I bought it for. Sold alot on ebay, set myself weekly allowance on fridays for food, fuel and play money and then every single spare penny went straight to paying off the debts.

gd55

a. The date of your lightbulb moment:
August 2017. Not sure why in particular, I just realised the total credit card/payday loan debts, plus the loan for a second-hand car I got earlier in the year, was eating up far too much of my wages and wasn't sustainable.
My best friend had gone into an IVA a few months earlier, and so she spurred me on to look at my options.
I entered am IVA at the end of September 2017.

b. Debts at their highest
Around £17k.
Credit cards, payday loans, car loan, one catalogue account.

c. Debt-Free Date
10 January 2022
I made a full and final settlement offer that was accepted and paid in November 2021. This was equivalent to 100% of the remaining payments due at the monthly payment rate at that time (payments were extended to six years from five as I had to take a payment break due to unemployment in early 2019). Money was gathered from selling bits and bobs and some careful scrimping and saving.

d. Your one pearl of wisdom
Look to the future, not the past.
There is a debt-free life ahead of you, and there are options for getting there, so focus on that and it will spur you on.

e. Links to the MSE guides that helped you
f. Which forum threads helped you
g. And if you had a debt diary on the Debt-Free Wannabe board (DFW), a link to it
Only joined the forum recently - the threads on checking your credit report and getting everything updated have been very useful.

danlightbulb

a. The date of your lightbulb moment

Around 2015 although I was aware before this that I was taking on debt at a faster rate than I could pay it off but I felt I had no way to tackle it. Id been tracking my debt and trying (but failing) to save regularly since 2012.

I never felt like my debt was avoidable however. It stemmed from my divorce, and wanting to maintain quality of life for my kids who I had at weekends as a single dad. My income didn't allow direct cash payments for alot of things, but I could manage the debt repayments so I used debt to help fund these various things for a number of years. I never blew excessive amounts of money on clothes or gadgets or frivolous things, most of it just went towards a holiday for the kids once a year, xmas and birthday presents for my kids and others, things I needed for myself as a single person to keep me sane. My only vice really is takeaway food, that could get a little out of control at times especially when the kids were here and I hadn't had time to prepare anything for myself.


b. Debts at their highest

About £12k in 2012.


c. Debt-Free Date

Early April 2022!


d. Your one pearl of wisdom.
e. Links to the MSE guides that helped you
f. Which forum threads helped you
g. And if you had a debt diary on the Debt-Free Wannabe board (DFW), a link to it

All the above questions: Im not going to pretend here. I feel I got lucky, and here's why.

In around 2015 I started to be seriously concerned about my debt level. I was 35, renting alone, divorced, paying child maintenance, and was worried about not being able to get a house for myself as no deposit and £12k of debt. I set myself a target of saving £4k per year and getting a house by the time I was 40 years old (2020).

In 2015 I gained a promotion at work which took some pressure off the monthly budget. I was able to start saving a couple of hundred each month directly.

I had also started to research things and came across bank account switching. During 2015 and 2016 I switched about 6 times making about £800. I also switched around some of my annual policies using cashback sites to generate a little extra. That was enough to put in to the next thing I found.

Matched betting. I found the guide on here first of all, then followed it up on other sites and eventually joined a subscription service. I matched bet for around 3 years, working on this most evenings and weekends, and made £25k in total. Matched betting dried up properly for me in 2019 so I gave it up. By this point I was technically debt free, but as my debt was mostly at 0%, I didn't immediately pay it off and put the cash into premium bonds instead. 

Ive had around average luck with premium bonds, nothing notable won. I also carried on saving during this time though and dabbled in some cryptocurrency mining in 2020/21 where I caught a rise in the market and was able to make some extra money.

At the start of the year I made the decision to pay off my debts completely using the savings I had gained. So now Im officially debt free as the credit cards and personal loan are cleared.

Unfortunately Im still not a homeowner. Even though my deposit is now secure and waiting for the right opportunity to be spent, during Covid availability went down and prices went up, so Im still nowhere near the ladder.

Looking back on my debt, which i carried for nearly 15 years, I feel that my income alone would never have been enough for me to make a serious dent in my debt. When I felt I had no chance of paying off my debt I just had apathy towards the whole thing. I just made my monthly payments, switched debt around when I could. I had resigned myself to never being able to pay it back.

It took these extra things on top, extra income through a promotion, matched betting and cryptocurrency, to enable me to do it and ultimately move myself into a position of net savings. I think that's quite sad actually, as those same opportunities are gone or less lucrative now. If I was starting now, without a sizeable salary boost I would still be in a bad place. I feel for those who simply don't have the income, and its all well and good trying to money-save and it helps of course, but income is king I feel. 

I think there is a real danger that I get into debt again in the future. When I do get a house, it will take all my savings and I'll be spending a much greater amount of my income on it, due to the way the prices have gone. Any work that needs doing will require debt funding unfortunately. This is one of the reasons I'm actually worried about getting a house, even though its in my long term interests. I have 28 years left until Im 70.



 

savingholmes

a. The date of your lightbulb moment 

I joined this site in March 2008 but didn't learn my debt lesson until we were in £70K in debt at the end of 2016. I had multiple debt free wannabee diaries. We had previous cycles of debt where we cleared it only to get back in debt again. The last time doubled our previous debt level and my light bulb finally came on and stayed on. Poor mental health and family issues related to late / undiagnosed ADHD impulsivity and ASD compulsion and decision fatigue have been major components of previous over-spending. Following diagnosis and awareness - it's easier to build a strategy to limit the associated risks.

If you've had previous cycles of debt - and are coming back head down and shame faced - stick your head back up. You can do this!!! If you get it on your first try - hats off to you!! Even better.

b. Debts at their highest

£70K

c. Debt-Free Date

April 2022

d. Your one pearl of wisdom.

Use gazelle intensity to get out of debt - it is easy to let it run on thinking I'm on 0% why does it matter. It matters!!! You never know what's around the corner. Even a £1K emergency fund brings huge peace of mind - so make it a priority - sell stuff if you have to!! 

e. Links to the MSE guides that helped you

I read Martin's book. I do the wallet workout regularly. I always use cashback sites. I reclaimed packaged bank account fees and PPI using the tool on here and got thousands of pounds back. Homeworking tax. 

f. Which forum threads helped you

Make £10 a day challenge for guilt free spends or just to speed your way to debt freedom.

Hundreds of debt free diaries and MFW diaries - too many to name - I don't want to miss anyone. I admire all of you!!

Debt free roll of honour - proving it can be done.

g. And if you had a debt diary on the Debt-Free Wannabe board (DFW), a link to it

Pre divorce this was my latest diary 

https://forums.moneysavingexpert.com/discussion/5787918/prosperous-soul-in-the-making/p1

Post divorce I moved to the MFW board even though I wasn't quite debt free yet!!

https://forums.moneysavingexpert.com/discussion/6314553/prosperous-soul-embraces-creativity-mortgage-neutrality/p1

I am now officially debt free!!! 

So down from £70K CC and car loan debt at worst in 2016 to £0 other than the mortgage.

I've had help from PPI and packaged bank account reclaims and cashback sites and more recently from wider family - but most of it has been a slog. We even sent a car back at a breakpoint in the lease. At our worst we were spending over £1K a month more than what we were getting in - so to turn that around to while still on a joint income - to at times paying off £3K a month (helped by lockdown) has been immense. Throw a divorce in towards the tail end with all the associated bills and it could have completely derailed me - but instead it made me more determined than ever to get and stay debt free. 

As Beanie's quote says, "Out of debt, out of danger." 

Thank you to everyone who has helped me along the way. You know who you are. My very own cheering squad!!

MrGorsky

a. The date of your lightbulb moment - 2015, upon stumbling over this forum
b. Debts at their highest - £70k unsecured debt
c. Debt-Free Date - 1st June 2022
d. Your one perl of wisdom. - Podcasts, forums and blogs, make money management a hobby, and obsess over spreadsheets, it becomes almost like a game.

g. And if you had a debt diary on the Debt-Free Wannabe board (DFW), a link to it - 
https://forums.moneysavingexpert.com/discussion/6009287/no-regrets-we-only-have-debt/p1

lublue

I am finally debt free paying off £28049 in 3 years. 
I took a route often frowned upon her but I consolidated my debt into one loan which I then made monthly over payments on whilst learning to live on a budget and reduced all unnecessary spending. 

I gave myself a weekly budget for Food, Petrol and a small amount of spending money. I was able to pay the loan off 5 years earlier than I signed up for, as the bank allowed unlimited overpayments of over £10. 

I was a daily visitor to this forum and took inspiration from many different diaries and threads. I am now looking at reducing my mortgage term through over payments.

I found having one payment easy to manage and was really spurred on by seeing how much interest I was saving but also how many months. I agree with the wise people on here if you have not really had your lightbulb moment, consolidation may not be the right route for you, I have no plans for any further borrowing. I have learned to save up for things I want but also have realised I need far less than i once thought I did. Peace of mind is worth far more to me now.

Good luck to everyone on their Journey, just keep chipping away it all makes a difference in the end.

LB

moto1

Old member here but couldn't get into my original account.  Its has taken me over 10yrs paying monthly via CCS now Stepchange for my debts to reduce enough for me to make settlement offers on them and I have just made the last payments. WOOP WOOP!  I was in debt for over 50k in a downward spiral before having my lightbulb moment and drawing a line under things and getting help, I didn't think it would ever get paid off but today it has.  All my lenders where supportive other than Nat West who constantly lumped on charges and interest for months at the start and took me to court to try and get my house (they didn't succeed). There is light at the end of the tunnel even if it takes a long time you can win and move forward, If you are reading this and in a similar situation get help from Stepchange or similar,  don't bury your head in the sand you will feel so much better with there support..

Blinky2010

Long time lurker, but so so pleased to say I have finally paid off my credit card debt today!

a. The date of your lightbulb moment - January 2021. 
b. Debts at their highest - 2019 £38,000   
c. Debt-Free Date - Today 20/06/2022
d. Your one pearl of wisdom. Try not to ignore your debts and instead slowly chip away at re paying, paying off the highest first. I used to assume as most were on 0% they could be repaid easily and didn't cost, but continuously switching to 0% deals still cost me in the long run. 
e. Links that helped you guides on debt repayments and snowballing debts
f. Which forum threads helped you debt free diaries, 

Finally I have repaid my credit card debt, which began modestly over 20 years ago while at university, and increased until 2012. I tried consolidating part of the debt around 2012 into a personal loan which I repaid in 2016, however, I still ended up with increased credit card debt. I then consolidated part of the debt into my mortgage in 2019 which helped to reduce the balance. In January 2021 I had my lighbulb moment and realised I needed to get rid of the debt for good. Since January 2021 I have paid off £23,000!! Helped by the pandemic and reduced spending opportunities, and also bonuses at work.