New to DFW... we're getting there!

CHlHlRO

Have lurked for a while and posted occasionally elsewhere but as things are finally beginning to move forward for us, I felt like sharing.

My debt problems started way back in 1997, when I opened a student bank account and got both an overdraft and a credit card. Initially, I refused to use either, but being terrible at budgeting (first time away from home managing own finances is a rotten excuse, but it's the only one I've got so I'm sticking to it!) I soon ran out of cash and dipped into the overdraft - interest free, of course, so that didn't worry me. I started getting REALLY irresponsible when I saw clothes I wanted that I didn't have the cash for and put them on the credit card. Before I'd maxed out the credit card, they had extended my limit, and if I maxed out my overdraft I'd just call the bank and they'd extend it. I also ended up with a second credit card and several store cards, which also had their limits extended before I'd reached the original one. I have no idea exactly how much debt I accrued as a student, but I did eventually manage to pay some of it off.

After graduating, I only claimed JSA, so I couldn't meet my repayments for anything. All it took to solve this problem was a call to each of my creditors, who negotiated a reduced monthly repayment. Once I found employment, I was able to increase most of the repayments, and all but one credit card reactivated my accounts immediately. That one credit card left me on a repayment plan, but I still paid what I could each month with the giro slip, with them taking the minimum via direct debit. As I was still living at home, I had an excess of income, which I paid into a savings account. As soon as there was enough in the account to pay of a debt in full, that's what I did - starting with the store cards & their ridiculously high interest rates, as that's what I thought was best. I successfully cleared three such cards this way, but by that point I'd moved into my own place so my expenses were much higher. I took out a loan with my bank which cleared the remaining debts, leaving me with just one... but I didn't stop spending on the credit cards, and I ran up another massive overdraft spending money I did not have. When the bank refused to extend my overdraft any further, I knew I was in trouble. It took a stern talking to from a personal banking advisor to make me realise just how much money I was wasting on things I did not need. For the next several months, I lived to the strictest budget I could, cutting out all non-essential spending, and I successfully reduced my overdraft by a sizeable chunk that allowed me to change bank accounts to a more ethical bank... and then I got a boyfriend.

Spending went up again, and I eventually ended up taking out another loan (which was used to clear debts, again) and a credit card with my new bank. I still had the old loan to pay off, but at that point, no other debt other than my (deferred) student loan. A house move, uninsured cat vs car incident, wedding, honeymoon, baby and a bit more irresponsible spending on un-needed things later, and I was earning only SMP and we were not able to meet the repayments on anything. I had contacted all our creditors (my husband had an overdraft and a bank loan) to warn them of this impending situation when I was pregnant, hoping to secure a similar arrangement to make reduced repayments as before but none had been willing to accept. They'd all said they would only negotiate a reduction if I defaulted. I contacted the CCCS for advice at each stage and we ended up making only token repayments of £1 per month to each creditor. When I went back to work, I went back to the CCCS, who suggested a DMP. We had all the paperwork, all ready to sign, then my mum stepped in and gave us a massive cheque - hoping we would use it for a deposit on a house. She didn't know our debts were the level they were. I rang the CCCS for advice, and they suggested making offers to settle. I then rang mum to tell her what we were going to have to do with the money. She was OK with it, said it was ours to do with as we wished.

Cut to the chase, we made offers of around 44% of the balance to each creditor - the maximum possible with the money we had. Those offers have been accepted by 3/5. Now going back to the other 2 to see if they will reconsider.:)

prepareathome

Well done but please don't take this the wrong way- Please learn from this your mum might not be around the next time or any one else......you are getting a chance of a clean slate, many don't please misuse it.

I wish you nothing but the best I promise you..........good luck and am so pleased a young family are not going to be pulled down by debt it really is nice to hear something good happening to someone it really is.