My Story towards being Debt-Free!

pugzy

Hi everyone!

Been on the boards for a year or so now and been learning a lot from you guys and many have helped me a lot personally (zx81 in particular)

Started chipping away at my debts after I lost a legal battle with a previous employer about holiday pay in County Court last November. It was only for a relatively small sum of £700 but it felt like £000's and literally brought me to breaking point as all I had ever been doing was trying to do the "right" things and it backfired.

Instead, got my self-esteem back uptogether and told myself that this was going to be the catalyst for me to turn it all around, which is when I started really joining this forum!

Found an awesome website called What'sTheCost where I could input all my debts, their APR's, minimum payments, how much you wanted to throw at debts per month in total and whether it would be most beneficial to pay them off in Interest Order (highest APR debts first) or Balance Order (clearing the smaller debts first before tackling the largest). Seemed that Balance Order was best for me.

Having lived with my mum all my life till I was 21, she is quite poor and always seemed to be living off credit of some sort. I took a loan of £5k out with Lloyds TSB back in 2005 for a 306 GTi6 that I'd always wanted. Being young, thought it was fine and even though my mum tried to put me off, it never worked! Paid bits off each month but thought nothing of it. Sold that in 2008 to move out with my girlfriend and bought a cheap Ford Escort runabout. Also, proposed to her and bought her a very expensive ring in the July!

Changed jobs and got higher salary. Decided to have our wedding in August 2010 and planned it to be big, Maldives for the honeymoon and everything we could want...above our means basically. Was working LOTS of hours and then wanted something to show for it...so I upped my loan again to around the £5k mark and bought a 406 Coupe 3ltr V6.

Moved house in June 2009 to a smaller but £100 less p/m place due to money troubles between myself and my partner.

Moved jobs again in Sept 2009 for closer to home and more money but didn't get paid for 8 weeks because of the opposite payday structures each company had. Got my first credit card (really didn't want to but needs must) and had to live off it for a few weeks to pay bills etc. At the end, racked it up to around £1600 and got very silly with it.

Early 2010, money troubles and stress split my fiancee and I up for a couple months and we called the wedding off. Sorted things out though and in the September, we decided to call the wedding back on for September 2011, but this time, being "realistic". She got herself a good part-time job with the NHS whilst making up her hours at my previous restaurant where she had been working full-time before.

Then as said above, Court case lost November 2010. Time to man up and face the prospect of being a mature adult and realising that I don't want to bring my kids up in the same way I was (debt-ridden and struggling every day where the word "money" enters every sentance)

So, with that being my "Light Bulb Moment", I started me Debt-Free Journey! :T

Decided to try to change jobs and got lucky again with another company where I could move to for more money initially with less and more sociable hours, eligible for large quarterly bonuses and have the potential to be allowed to be promoted to having my own restaurant after learning for many years as an Assistant. Got offered the job in January but couldn't join till April as I had a 3-month notice to serve, for which I'm very grateful to my Area Manager for waiting for!

Hopefully these bonuses will speed up my DFD! :cool:

November 2010
Lloyds TSB Loan = £3400 (14.88% APR)
Barclaycard CC = £1600 (0% APR till Oct 2011)
County Court Order = £740
TOTAL = £5740

August 2011
Lloyds TSB Loan = £1143
Barclaycard CC = £600
MBNA CC = £1900 (0% APR till end of 2012)
TOTAL = £3643

Did a SBT with MBNA to remove some the APR in April 2011 on my Lloyds Loan.

I'm paying £300 per month towards my debts and paid over £1000 in 4 months...at present, I have 12 months till my DFD, which then means my partner and I will try for kids!

In the meantime, we get married on 3rd September (4 weeks!!!) for which she has saved £300 per month since last September and have had no help whatsoever! So proud of ourselves. I've made a point of her not helping me sort my debts, it's my problem and needed sorting by me and me only and I'm well on-track to do that!

So yeah, sorry for the massive post, but will be great for me to look back on in months to come and will hopefully make others realise that when you do hit rock-bottom, try to make it the start of something better!

Thanks guys and girls, love this forum! Couldn't have got anywhere near to where I have today without your help, advice and stories!! :beer:

fakeplastictwee

Good luck with clearing your debts, you've got some great motives at the end of it all to help spurr you on.

piknie47

Well done for getting things on track. I've just recently started this journey. I know I have a very long way to go because my debts are huge but your story is an inspiration. Best wishes and thanks for sharing.

HollowTree

Thanks for posting your story. I like to read what motivates people to change and how they go about doing it. It can be hard reaching our goals but sharing your story with others gives inspiration.

I hope you have a lovely wedding and good luck on your DF journey! Will look out for updates

neverlearn

Nice post,

Glad at your young age, you have had you LB moment and learnt your lessons early.

Good luck and keep us posted

:money:

pugzy

Thanks everyone!

I had a 5 year goal that I started when I was 21...
- Move out my family home
- Have a nice car
- Be married
- Work as an Assistant in many catering trades
- Have my own restaurant using my experience gained

I'm nearly 26 and have achieved all of those except for the restaurant to which I'm nearly there!

New 5 year plan started when I had my LBM...
- Debt-free (or any debt that I'm in to be from both myself and my partners ie. mortgage)
- Kids
- Married
- Savings in the bank and well on our way to owning our own place
- Have my own restaurant and possibly be working my way towards Area Manager

If you want something that bad then you will reap the rewards

milann

Hope it works out for you - you certainly have to right attitude to make it happen

pugzy

Just to add to my life goals and targets from the other day; found out my Manager has been offered a position at another restaurant in Portsmouth, meaning that his vacancy will be available at the end of September!

Think I need to go through the process of being interviewed for it again though which is a bit daunting and rigourous but we shall see...nearly completed all my goals

Obviously means more money but more stress

pugzy

Well...another goal achieved, I am now married!

Had a perfect day on 3rd September and got back from our honeymoon in Sharm El Sheikh last night, been amazing!

However, due to all the stress we were going through prior to the wedding and not wanting to start married life in a stress too, I decided not to put myself forward for the Manager position in my restaurant. I don't think I could do the restaurant justice at this moment in time and am happy to sit back a bit longer and get a firm grip of my married life in the hope that a few months down the line, something more suitable may come up, wherever and whatever that could be, or maybe not at all!

pugzy

Big moment today...I've just paid off my Barclaycard Credit Card which was my original debt!!!

So pleased with myself and the help from this forum, got me on the right track and paid off £1600 of it since last November!

WOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOOO!!!

rising_from_the_ashes

Just wanted to say "congratulations" on many fronts .... marriage, sorting out your debts & paying off your b/card!