A success story.. *almost*

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Comments

  • That is such a great achievement!! Well done for doing so and thanks for posting it!! What an inspiration!!
    Lotta
    K-Lye wrote:
    Hi, I've been a regular on MSE for some time now. I've rarely posted but have done a fair amount of soaking up valuable ideas and techniques. As most of us are probably all too aware, debt is something that is so easy to fall into but oh so challenging to get out of :rolleyes:

    For those fresh into this battle, it can seem quite daunting. I should know as I had a serious amount of debt and I'm now tantalisingly close to winning my own personal war against the £35,000 thorn in my side.

    The reasons for most of my debt, like most, are varied but ultimately due to my failure to face up to my financial situation. Things changed when on a day in October 2004 I faced reality. I'd just taken on my first mortgage with my partner and knew that if we were going to make it, I was going to have to deal with this debt.

    I resolved to do what was necessary and went about seeking advice from friends, professionals & sites like this. For the next two years, I did everything I could to earn as much money as possible and plough it all into the debt. I worked hard and got a pay rise, Ebay'd till the cows came home, did ovetime & even worked a second job.

    I got rid of all non-essential items (do you *really* need Sky?) and cancelled all outgoings bar my phone, gym & home costs (mortgage, gas, etc). I learned to live off £300 a month for all food and expenses - which is honestly sufficient to enjoy yourself and still have a good social life!

    I sold my car and used public transport for all my commuting. This alone saved me a small fortune in insurance, tax, petrol & running costs. Lets face it - a car is a luxury.

    I got savvy with my money and renegotiated absolutely everything. Credit cards moved to 0% interest, phone bills were cut in half, utility bills were slashed, I even moved my loan on to a lower interest rate with the same bank. Most of the ideas came from MSE! ;)

    During all this, I still managed to go on a couple of short holidays. Burnout is counterproductive and when you're pushing this hard, you need to take a break. I did, and didn't feel guilty about it because even my holiday was a bargain!

    I planned and monitored every penny and kept it all listed on an excel spreadsheet. The exact figure when I started was £35,061.64. At this very point in time, I owe a grand total of £2,276.58. I managed my money regularly and even started looking forward to checking my statements just so I could confirm how much I paid off each month! :p

    If I continue, I will be debt free within the next 8 weeks. I am however planning a short break as as my father will be visiting from overseas so I'll be taking him around on a bit of a tour. Ultimately, I know that by the 1st January 2007 I will have achieved the goal I set myself 2 years ago. I expect a bottle of bubbly will be in order!

    Anyway, It's certainly not my intention to brag about this (I considered not posting this at all). It is my hope that to those curently embroiled or just embarking on this fight, that they can draw some inspriation and courage from my story and to do what needs to be done because there is definitely light at the end of the tunnel :)

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  • taxi73
    taxi73 Posts: 20,815 Forumite
    What a wonderful inspiration you are to all of us...it goes to show with a lot of hard work and determination we can do it...I am at the beginning of my challenge with lots of debts and set myself a target to be debt free march 2008...so here goes..thanks for the encouragement
    :beer: :T
  • A great story, well done! Sadly, many people in debt see no light at the end of the tunnel and there are many horrendous stories of suicides, DO brag about it, who knows, maybe you might just help someone in the depths of despair.
  • K-Lye
    K-Lye Posts: 78 Forumite
    Well.. time for a follow up I think.. :)

    Much as I wish I could say I've reached my goal, I haven't just yet. I suffered a small set-back in that in if I'm completely honest I overspent a tad at Christmas.. :rolleyes:

    A bit naughty I know.. but I'd not let that stop me. After a bit of quick finance-juggling I'm now back on track and a mere 4 weeks away from Debt-free day.. the anticipation is almost killing me.. :D
    K-Lye wrote:
    Hi, I've been a regular on MSE for some time now. I've rarely posted but have done a fair amount of soaking up valuable ideas and techniques. As most of us are probably all too aware, debt is something that is so easy to fall into but oh so challenging to get out of :rolleyes:

    For those fresh into this battle, it can seem quite daunting. I should know as I had a serious amount of debt and I'm now tantalisingly close to winning my own personal war against the £35,000 thorn in my side.

    The reasons for most of my debt, like most, are varied but ultimately due to my failure to face up to my financial situation. Things changed when on a day in October 2004 I faced reality. I'd just taken on my first mortgage with my partner and knew that if we were going to make it, I was going to have to deal with this debt.

    I resolved to do what was necessary and went about seeking advice from friends, professionals & sites like this. For the next two years, I did everything I could to earn as much money as possible and plough it all into the debt. I worked hard and got a pay rise, Ebay'd till the cows came home, did ovetime & even worked a second job.

    I got rid of all non-essential items (do you *really* need Sky?) and cancelled all outgoings bar my phone, gym & home costs (mortgage, gas, etc). I learned to live off £300 a month for all food and expenses - which is honestly sufficient to enjoy yourself and still have a good social life!

    I sold my car and used public transport for all my commuting. This alone saved me a small fortune in insurance, tax, petrol & running costs. Lets face it - a car is a luxury.

    I got savvy with my money and renegotiated absolutely everything. Credit cards moved to 0% interest, phone bills were cut in half, utility bills were slashed, I even moved my loan on to a lower interest rate with the same bank. Most of the ideas came from MSE! ;)

    During all this, I still managed to go on a couple of short holidays. Burnout is counterproductive and when you're pushing this hard, you need to take a break. I did, and didn't feel guilty about it because even my holiday was a bargain!

    I planned and monitored every penny and kept it all listed on an excel spreadsheet. The exact figure when I started was £35,061.64. At this very point in time, I owe a grand total of £2,276.58. I managed my money regularly and even started looking forward to checking my statements just so I could confirm how much I paid off each month! :p

    If I continue, I will be debt free within the next 8 weeks. I am however planning a short break as as my father will be visiting from overseas so I'll be taking him around on a bit of a tour. Ultimately, I know that by the 1st January 2007 I will have achieved the goal I set myself 2 years ago. I expect a bottle of bubbly will be in order!

    Anyway, It's certainly not my intention to brag about this (I considered not posting this at all). It is my hope that to those curently embroiled or just embarking on this fight, that they can draw some inspriation and courage from my story and to do what needs to be done because there is definitely light at the end of the tunnel :)
    I imagine bugs and girls have a dim suspicion that nature played a cruel trick on them, but they lack the intelligence to really comprehend the magnitude of it. -- Calvin & Hobbes :rotfl:
  • jenchin66
    jenchin66 Posts: 648 Forumite
    :T Well done, you are so close, I bet it's a great feeling
    Pad, started 28.11.08 running total £3674.91:T
    Sealed pot challenge member 346:T
  • themaccas
    themaccas Posts: 1,453 Forumite
    Well done, just read your thread. That is an amazing achievement, I can't wait until we get there, how much of your debt is left?
    Debtfree JUNE 2008 - Thank you MSE:T
  • K-Lye
    K-Lye Posts: 78 Forumite
    themaccas wrote:
    Well done, just read your thread. That is an amazing achievement, I can't wait until we get there, how much of your debt is left?
    Hmm.. I can't be specific as some of that will depend on exactly how much interest I get back by finishing a loan early.. but if I exclude that and by my calculations I expect I've got about £1000 :cool:
    I imagine bugs and girls have a dim suspicion that nature played a cruel trick on them, but they lack the intelligence to really comprehend the magnitude of it. -- Calvin & Hobbes :rotfl:
  • Storm
    Storm Posts: 1,749 Forumite
    Debt-free and Proud!
    K-Lye wrote:
    Well.. time for a follow up I think.. :)

    Much as I wish I could say I've reached my goal, I haven't just yet. I suffered a small set-back in that in if I'm completely honest I overspent a tad at Christmas.. :rolleyes:

    A bit naughty I know.. but I'd not let that stop me. After a bit of quick finance-juggling I'm now back on track and a mere 4 weeks away from Debt-free day.. the anticipation is almost killing me.. :D

    Ah, I recognise that feeling - you can't wait for payday, not to go shopping, but to clear another chunk of debt :rotfl:
    Total Debt 13th Sept 2006 (exc student loan): £6240.06 :eek:
    O/D 1 [strike]£1250 [/strike]O/D 2 [strike]£100[/strike] Next a/c [strike]£313.55[/strike]@ 26.49% Mum [strike]£130[/strike] HSBC [strike]£4446.51[/strike]@15.75%[STRIKE]M&S £580.15@ 4.9%[/STRIKE]
    Total Debt 30th April 2008: £0 100% paid off!

    PROUD TO [STRIKE]BE DEALING [/STRIKE] HAVE DEALT WITH MY DEBT ;)
  • K-Lye
    K-Lye Posts: 78 Forumite
    Storm wrote:
    Ah, I recognise that feeling - you can't wait for payday, not to go shopping, but to clear another chunk of debt :rotfl:
    Absolutely!! :D
    I imagine bugs and girls have a dim suspicion that nature played a cruel trick on them, but they lack the intelligence to really comprehend the magnitude of it. -- Calvin & Hobbes :rotfl:
  • K-Lye
    K-Lye Posts: 78 Forumite
    Well.. time for the big update.. :D

    I'm now officially debt-free-ish... although... I still have a loan!

    Basically, last month I had my money piled up in my ISA/savings accounts waiting to pay off my loan, only when I called my bank to ask for a settlement figure I calculated that I'd earn more interest by NOT closing the loan.

    It seems that given I've only got 10 months remaining on my loan I've pretty much paid all the interest already so I'm actually earning about 4 times as much on the money on my ISA/Savings. Go figure! :rolleyes:

    So, what do you think? Can I call myself debt-free? Technically I could clear my loan immediately, but it makes sense to make my money work for me no? :confused:
    I imagine bugs and girls have a dim suspicion that nature played a cruel trick on them, but they lack the intelligence to really comprehend the magnitude of it. -- Calvin & Hobbes :rotfl:
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