The Debt Free Roll Of Honour

Madison

a. The date of your lightbulb moment

26/08/2003 - made first payment to DMP on 28/10/03

b. Debts at their highest

£48,000

c. Debt-Free Date

28/05/10 - last payment to DMP - original projected date for final payment was 28/12/13.

d. Your one perl of wisdom.

Take full responsibilty for the mess that you're in. At first I used excuses about irresponsible lenders increasing my credit limit each time I was at the maximum, friends encouraging me to 'splash out' on holidays, unneccessary purchases etc but at the end of the day, it was *I* who chose to do it. Once you take full responsiblity, you feel empowered to take responsibility for getting out of debt. It's a hard slog, (six years, seven months in my case and I'd been running up credit card debts for 10 years prior to my LBM) but you do get there in the end. It's character building and you become much more savvy with your disposable income once it's yours to keep each month - spending wisely and saving and investing.

Good luck to those of you still on track, it's a wonderful feeling when you get there!

mummum2

Well done Madison! huge amount shifted in 6 years, truly impressive. Good luck and happy DF life! can't wait for my turn.

:beer::j:T:T:T

MM2

Spirit_2

Debt at LBM - £64276

Date of LBM - 29 July 2007

How it all began - https://forums.moneysavingexpert.com/discussion/514182


Debt free date - 18 June 2010

Top tip - if you fall off the debt free wagon, just get back on .Keep posting.


I would not have achieved this without this site. It is a life changing experience.

Well done Martin.....social engineering at its best.

Spirit

mummum2

Wow! Spirit truly impressive! shifting that amount of debt in just 3 years. Here's to a happy DF life to you and yours.:beer::T:T:T:T:T:j:beer:

MM2

MoodyBlues

Spirit. An inspiration. Well done!

richardvc

It has arrived, my day has come, the final direct debit has gone out and from today, I can say that I am totally debt free.

It has been quite an emotional journey and in the five years since my LBM a lot has happened - some good and some sad.

But enough of that !!

Debt at its highest - well it got desperate, I sold a house to pay some of it off but my lbm was still some time away.

I had 18 creditors and owed about 45k (still not sure of the total amount) and after the house sale ended up with a debt of 37k.

My LBM - June 25th 2005 was a truly momentous day - after lurking on this site I had read about people who had become debt free but had felt the same emotions as me - scared and nervous.

I was out of work after a redundancy but had received a job offer yet was unsure how my proposed salary would ever pay off my debts. But it was time to face my demons.

I locked myself away for the whole day and opened all the envelopes that I was too scared to confront before. By the end of the day, my debts totalled 37k :eek:

I contacted by phone or letter every company that I owed money head-on. Some directly, some via DCAs but by 6.00pm I had a plan.

Everyone and I mean everyone agreed to my proposals for regular monthly payments - interest was frozen and I had a workable plan. Court cases were dropped, stress was relieved and I was moving forward without the need to keep looking over my shoulder every day.

I 'spreadsheeted' every payment and also ran a diary making notes about every time I spoke to any of my creditors. I logged dates, times, who I had spoken to, what was agreed and wouldn't be pushed around by the DCAs. I gave them a choice, I'll pay it back but I'm in charge.

After a while at work I had a good pay rise and was able to throw more money at my debts - every penny counts and then I learned the art of snowballing.

The spreadsheet got interesting and every three months I would announce to my other half how much I owed. I could see that bit by bit it was coming down and my DFD was getting closer.

My tips -

1. MS Money - I can keep an eye on all my cash, everything is logged and you can see exactly where your finances are at any time. It is great for helping you manage your money and avoid the need for going overdrawn.

2. Snowball - any unexpected income was used too. I chucked money at every debt and as one was paid off the money was used somewhere else.

3. Credibility - back up what you say to creditors. If you say you will send them a cheque, then do it BUT if they don't do what they say then jump on them. In my mind it is all about credibility and trust and building a relationship.

4. Accountability - If asked to appear in a County Court, then attend if possible. I had a judgement against me but I attended and got the terms of repayment agreed to my demands because I was there and the opposition wasn't ! The next time I had to go back for a review the judge was totally satisfied that I had carried out his instructions and let it continue while praising my open and honest attitude.

5. Never, ever take your eye off the ball - I knew exactly where I stood at any time and even though one DCA, the Lewis Group, tried to bully me to increase my monthly payments, I stood firm.

They told me that they would take me to court for not revealing my income/outgoings to them. I told them that it was none of their business and would be happy to attend as a judge would see that I had made regular and increasing payments and would chuck their case out of court. I wasn't taken to court.

BTW, I also refused to give them my mobile number or my email address too as they could contact me by post !

6. Learn the value of money - do you need that must-have item or just want it ? I found that I wanted loads but needed little and that saved me a fortune and when I did have to have it, I shopped around to get it as cheap as possible.

7. Openness - my other half has been brilliant. Telling her about my debts was truly humiliating. Her first comment was she knew I had money problems but didn't know the extent. I thought I had hidden them from her !!! Her support and interest has been breathtaking and we had a celebratory cheer this morning after I had checked my bank account to see if the final DD had gone out !!

Apologies for the long post but I never really thought this moment would arrive when I trod the road five years ago.

Anyone can do this, it is about determination and having a final goal.

I now have savings, a short, medium and long term financial plan and a real sense of purpose with regard to my financial future. I am also the most well organised person I know - our house is orderly, decluttered and runs like a well oiled machine !!

Finally, thanks to MSE - I have been inspired by posts to get my life in order from people I will never meet or be able to thank. I am so grateful to every person I have learned from and hope that if this post can inspire one person to come out of the shadows of debt then I have 'paid it forward'.

Now, come on England, make my day complete !!

mummum2

:TRicharddvc,

Most impressive, love your honesty and massive congrats on your DF life.:beer::beer::beer::j:j.

MM2

skaps

richardvc wrote: »

It has arrived, my day has come, the final direct debit has gone out and from today, I can say that I am totally debt free.

It has been quite an emotional journey and in the five years since my LBM a lot has happened - some good and some sad.

But enough of that !!

Debt at its highest - well it got desperate, I sold a house to pay some of it off but my lbm was still some time away.

I had 18 creditors and owed about 45k (still not sure of the total amount) and after the house sale ended up with a debt of 37k.

My LBM - June 25th 2005 was a truly momentous day - after lurking on this site I had read about people who had become debt free but had felt the same emotions as me - scared and nervous.

I was out of work after a redundancy but had received a job offer yet was unsure how my proposed salary would ever pay off my debts. But it was time to face my demons.

I locked myself away for the whole day and opened all the envelopes that I was too scared to confront before. By the end of the day, my debts totalled 37k :eek:

I contacted by phone or letter every company that I owed money head-on. Some directly, some via DCAs but by 6.00pm I had a plan.

Everyone and I mean everyone agreed to my proposals for regular monthly payments - interest was frozen and I had a workable plan. Court cases were dropped, stress was relieved and I was moving forward without the need to keep looking over my shoulder every day.

I 'spreadsheeted' every payment and also ran a diary making notes about every time I spoke to any of my creditors. I logged dates, times, who I had spoken to, what was agreed and wouldn't be pushed around by the DCAs. I gave them a choice, I'll pay it back but I'm in charge.

After a while at work I had a good pay rise and was able to throw more money at my debts - every penny counts and then I learned the art of snowballing.

The spreadsheet got interesting and every three months I would announce to my other half how much I owed. I could see that bit by bit it was coming down and my DFD was getting closer.

My tips -

1. MS Money - I can keep an eye on all my cash, everything is logged and you can see exactly where your finances are at any time. It is great for helping you manage your money and avoid the need for going overdrawn.

2. Snowball - any unexpected income was used too. I chucked money at every debt and as one was paid off the money was used somewhere else.

3. Credibility - back up what you say to creditors. If you say you will send them a cheque, then do it BUT if they don't do what they say then jump on them. In my mind it is all about credibility and trust and building a relationship.

4. Accountability - If asked to appear in a County Court, then attend if possible. I had a judgement against me but I attended and got the terms of repayment agreed to my demands because I was there and the opposition wasn't ! The next time I had to go back for a review the judge was totally satisfied that I had carried out his instructions and let it continue while praising my open and honest attitude.

5. Never, ever take your eye off the ball - I knew exactly where I stood at any time and even though one DCA, the Lewis Group, tried to bully me to increase my monthly payments, I stood firm.

They told me that they would take me to court for not revealing my income/outgoings to them. I told them that it was none of their business and would be happy to attend as a judge would see that I had made regular and increasing payments and would chuck their case out of court. I wasn't taken to court.

BTW, I also refused to give them my mobile number or my email address too as they could contact me by post !

6. Learn the value of money - do you need that must-have item or just want it ? I found that I wanted loads but needed little and that saved me a fortune and when I did have to have it, I shopped around to get it as cheap as possible.

7. Openness - my other half has been brilliant. Telling her about my debts was truly humiliating. Her first comment was she knew I had money problems but didn't know the extent. I thought I had hidden them from her !!! Her support and interest has been breathtaking and we had a celebratory cheer this morning after I had checked my bank account to see if the final DD had gone out !!

Apologies for the long post but I never really thought this moment would arrive when I trod the road five years ago.

Anyone can do this, it is about determination and having a final goal.

I now have savings, a short, medium and long term financial plan and a real sense of purpose with regard to my financial future. I am also the most well organised person I know - our house is orderly, decluttered and runs like a well oiled machine !!

Finally, thanks to MSE - I have been inspired by posts to get my life in order from people I will never meet or be able to thank. I am so grateful to every person I have learned from and hope that if this post can inspire one person to come out of the shadows of debt then I have 'paid it forward'.

Now, come on England, make my day complete !!

And they have done it.:j Many congrats.:T What an inspirational post. I love this forum as it always inspires me whenever im feeling a bit low.

saorsie

Thank you Richard for your honesty and inspiration - I feel quite tearful reading of your journey - soft sod that I am!

Enjoy - you deserve every last minute of this glorious outcome :j

-s-

Jazzie99

Many congratulations Richard... a very moving and motivating account. Just what I needed as recently I've been feeling quite fed up with skimping and saving every penny! Cant wait to be where you are now .... well done :beer: