Story of one man's LONG road to financial recovery

LondonGirl252

turbo.jet!!

I have just read the good news. I am so happy for you, that's incredible. I hope you won't forget us on here and keep us updated on how you convert to life in the black!

We can all only hope to be so fortunate, you paid off a huge chunk of it yourself through hard work so I have no doubt you won't forget what it was like 'before'

Congratulations!

turbo.jet

Absolutely! I'm never going back to my old ways. Next debt will be a mortgage and that'll be after a lot of saving!

Thanks for your well wishes. I feel a bit bad - I wish everyone could have this happen to them! I'll still be following everyone's journey with interest

LondonGirl252

Don't feel bad, you must deserve your good fortune! I am wildly jealous but I don't begrudge you it! :P

turbo.jet

Looks like I spoke too soon and I may not be debt free just yet. I've done some research and discovered I have to pay tax on the interest component of the refund. The interest is something like £2,118. I can't work out whether this will be taxed at the higher rate or not as it might tip me over into the next bracket, or I may be in it already (my pay is complicated because I salary sacrifice some of my pay into my pension which they take before they calculate the tax & NI).

I'm not very good when it comes to taxation so I'm a bit confused, but the worst case scenario is I have to give £850 to the taxman, meaning I'll still be in debt for a while yet.

I'm hoping I can keep the whole refund and then pay the tax through my tax code. Fingers crossed! I'll try and get hold of the HMRC tomorrow.

turbo.jet

Well I've just spoken to the HMRC - for a government department it was a very good customer service experience. I didn't hold on the phone for ages and the person was very helpful.

As its a one off payment which won't be occurring again they are going to adjust my tax code rather than make me do a tax return, so I get to keep the whole amount. I shall be transferring a final payment over to the good people at Barclaycard as soon as it comes in in full and final settlement of my final debt after all! Woohoo

debtfreewannabe321

turbo-jet!!! I've just read your good news!!!!!!!!

oh wow i'm so happy for you :T:j (and slightly jealous too ) I hope you stick around, you can give us all hope that there is a light at the end of the long tunnel and that savings is a real possibility :T

really happy for you i bet you were smiling from ear to ear (and prob still are!)

dfw :T

turbo.jet

Totally! I just can't believe it. Someone is looking after me. I've learned my lesson so they've let me off the hook. I really wish everyone could have the success I had. Of all the measures I thought I could use to increase my income and bring my DFD forward I had dismissed this one thinking I'd never get paid out.

Thanks for your kind words. I will certainly hang around!

debtfreewannabe321

and just think instead of becoming debt free for your 35th you have time to save up for something nice instead! I wish i could say the same my debt free date is for when I'm 35 and a half lol

dfw x

turbo.jet

I wish everyone could say the same. I am over the moon but sad for people that haven't had such luck. I have been in debt for nearly 10 years though so its not as if it a massive shortcut!

My initial savings will go towards finally getting a flight to Aus to see my friends and family. Haven't been for a very long time and I'm desperate to meet all the babies my cousins and friends have had in that time, plus see everyone.

Then I might think about getting that car. I can get a Celica for about £900... always wanted one of them. Not too fancy but looks good I will of course, only do this with my OWN money And only if it makes financial sense. The train tickets are going up by so much next year it might be worth my while to switch to driving.

LondonGirl252

turbo.jet wrote: »

Well I've just spoken to the HMRC - for a government department it was a very good customer service experience. I didn't hold on the phone for ages and the person was very helpful.

As its a one off payment which won't be occurring again they are going to adjust my tax code rather than make me do a tax return, so I get to keep the whole amount. I shall be transferring a final payment over to the good people at Barclaycard as soon as it comes in in full and final settlement of my final debt after all! Woohoo

Fantastic!

Can't wait to read your post once thats done and see your updated signature!