Finally debt free!!

Li0nhead

Finally cleared my debt today.

Have not posted my story on here but decided to now.

History:

Young idiot me enters work 19. Young idiot gets seduced by overdraft and card from my bank.
Rack up £2000 worth of Credit card debt in a ok local authority job that had regular income.
Young idiot me leaves LA job for a job in construction. Irregular pay, Idiot me only making min payments, skipping odd payment....roll on a few years to 2007/8..... recession hits.....Skipping payments, head in sand.....end up out of work....Panic hits, try to claim on my PPI (that I only just realised I had).....Cannot due to skipped payments etc. Debt had ballooned to £4K+.

So out of work, £4K+ unsecured debt came to an agreement with the debt collection agency as my case had been passed onto them. £5 a month payment plan for 6 months, interest frozen (only income dole). Got a job in a supermarket working nights, 6 months plan lapsed so increased it. Every 6 months increased payments, got a promotion.

Roll on to last increase to £200 per month payments 6 months ago. Yesterday had an outstanding balance owed of £230 so paid it off finally.

Debt free finally!

Advice to those in debt:
Do not ignore it like I did. At the end of the day they want their money back, they will talk to you.
Being passed to a debt management company is not the end of the world, they want their money that's it. They can come to payment agreements.
Again: DO NOT IGNORE THE DEBT.

Not gloating as if you think about it with what I have paid for an initial £2K debt I could have had a decent way to a deposit saved for a house. But basically advising all of you to deal with it, do not ignore it like I did!

On a side note I am wondering if its worth going for a PPI claim on this as I did not know I had it and once I tried to claim I could not. But that's another issue.
Talk to your creditors and take note of sites like MSE for advice.

tootallulah

Well done and good luck for the future. The "DO NOT IGNORE" is the best advice of all.

HOK3Y

Oh well done - that must feel fantastic! Great advice too. If you get into the mess at some point you will have to get yourself out of it. Congrats to you!

Li0nhead

Massive weight off the shoulders.

Also I effectively now have an extra £200 spare a month.
Lets just say I don't have a credit card anymore and just use my bankcard (I know missing out on some freebies) so if I don't have the money, I cannot buy it.
The lesson taught me that the only acceptable debts for me should be a mortgage and/or a car loan/finance. Anything besides I should not need.

Li0nhead

Update exactly 2 months down the line.

Gone from paying £200 a month in debt payments and today signed up to a monthly Sharesave scheme with work costing me £250 a month.

Debt free and £50 a month down .

No its great to be in a position to do this as the Sharesave scheme is a no brainer.
I have gone for the max £250 even though i was intending £200 as i would not notice a difference from when i was paying the card off but upped it to £250.
They take this amount from my pay and at the end of the 3 years i have a choice to take the cash or buy shares in the company at a price 20% below the closing share price on 14th nov 2013.

So 3 years time i look at the share price:

A: cash in the shares if the value is more than i paid for them
B: take the risk of holding onto the share i buy
C: If the share price has fallen from my rate, don't buy them and simply take the lump sum i have saved +a bit of interest.

Worst case scenario is I am putting my money into an account for 3 years with a rubbish interest rate.

2 months from being in debt to being a saving shareholder!

Downside.....I am now officially a corporate drone for my company.... 'The company is life.....The company is my family.....'