Newbie with a tale to tell

May2013

Wow – what an amazing forum for advice & support! I only discovered you yesterday….I so wish I knew you were out there when I found myself in ‘Desperation Street’… the last three years could have been so different!!

I’ll try to keep this brief but thought my story might give hope to those of you who are taking your first steps to tackling debt as well as giving me the opportunity to publicly admit for the first time the financial mess that I created for myself….if I can confront the war on debt anyone can!!!!

In 2007 due to my own financial mismanagement I hit rock bottom having racked up a massive £49,475 :eek: in unsecured debt spilt between 5 credit cards, a bank loan & £1500 overdraft. I knew I was living way beyond my means & was seriously out of my depth but like so many I buried my head in the sand and was in total denial. However my creditors weren’t quite so flippant, and at the midpoint in the year my world came crashing down around me…the bank withdrew my overdraft facility, I was refused extensions to the credit limit on my credits cards and three of them froze future credit altogether. I defaulted on payments and consequently secured myself an abysmal credit rating .

I felt desperate, alone and fell into a state of depression. I had no idea how I was going to climb out of the mess and was too ashamed to talk to anyone or ask for advice, but with four teenage children to take care of I knew I had to square up to this demon. I started by making massive cut backs in our essential outgoings, I can assure you that I wasn’t living the life of luxury before this reawakening but it’s amazing how much money you can save by swapping to value brands, having beans on toast for tea a couple of times a week, making porridge with water rather than milk, turning the heating down and adopting the good old wartime philosophy of ‘mend and make do’! I didn’t allow myself to be influenced by peer pressure and simply told friends that I couldn’t afford to join them on a day/evening out, it was one of the best thing I ever did, saving myself £££’s.
In summary I started living within my means. I cut up my credit cards, DD were set up for essential bills, SO’s were put in place for the CC’s (at the time these were for the min payment but have never been revised down so I’m now paying above the min payments and starting to see significant dents in the outstanding balances) I gave myself a pot of cash to cover food, clothes, petrol, entertainment etc…having relied so heavily on plastic it was hugely focussing to see how fast the actual cash disappeared!! Through tough budgeting I soon found that I regularly had £50/£60 left at the end of the month which along with any birthday money or other cash gifts was religiously ploughed back into clearing the credit cards ….I no longer have luxuries and won’t for another few years but what the hell, I’m winning my war against debt!!!

I now owe £22,513, that’s over 50% of my debt cleared in 3 years!! The ‘Snowball Calculator’ (discovered yesterday via this fantastic website) tells me that at my current rate of repayment I will be debt free (excl the mortgage) by May 2013….happy, happy days!!! :j

Well done to all of you who are beating your debts into submission, you have my total admiration and respect. And to those of you who are starting on the crusade don’t be afraid…the journey may be long and not always comfortable, but for me, regaining control of my finances is proving to be the most liberating experience of my life.

Good luck to you all xxx

ellesbellesxxx

WELL DONE !!!! You have got so far already

ellesbellesxxx

PS: Have you discovered Quidco? xx

miggy

Welcome, and well done for making such a massive impact on your debts, especially amazing without the support of the lovely people here!
Thank you for sharing your acheivements. It's great to see what can be done. Looking forward to seeing you around!

dollybeads

Well done you, I am just starting out on my journey, but am putting in place the things you suggest with the support of the lovely people on this site. Stories like yours are an inspiration to us new starters. Looking forward to seeing you around on here and following your story.

Many thanks dollyx :T

May2013

Thanks for your feedback guys…it’s the most amazing feeling to know that I’m not alone! Thanks also Ellesbelles for the Quidco tip – I didn’t know it existed…brilliant!!

rising_from_the_ashes

Wow - well done!

I had to stop going out with friends/going to pub etc and literally thought I'd die if I couldn't - obviously I managed to survive and after a couple of months it def gets easier. Hoping to pick up some tips from you!

May 2013 would be a fantastic achievement (and not too far away either)!

DebtfreeBY40_2

Thank you for sharing, you are an inspiration to many. Well done on not only making the journey but coming to this part of it with such a positive outlook. I am at my happiest when I am working out how to save money, getting bargains and controlling my spending. When I spend money like I have a bottomless pot of it I hate myself! I have about £41,000 of debt at the moment and yearn for the day when I can make a post like you. Keep up the good work x

ellesbellesxxx

I heart Quidco! Have made 300 pounds just from doing my usual! plus by signing up to free lovefilm, equifax, experian trials I made 45 pounds - cher ching!X

Mosiedose

Your post is really inspiring especially given how far you have come already!!!

BEAT_THE_DEBT

Its people like you who give me hope thank you so much stick around and tell us more i am very interested.x
THANKYOUXXXXXXXXX