Light at the end of the tunnel

gettingbackontrack

Well, hello new diary. You're somewhat overdue but better late than never, eh? (Just like some of my credit card payments in the bad old days.... :rotfl:)

So, I had a diary here before and didn't really keep it up. But now my debt-busting is down to the last 20%, it's a good time to look back on how things were, to ensure I don't lose focus over the next few months, and also to start thinking about the day this journey ends.

Yes. Incredibly, unbelievably, I can look forward to a day when I'm debt free.

A little about my history: I never intended to run up huge debts, and sadly I don't have a Ferrari on the driveway to show for it. I simply lived above my means and put day-to-spending, treats and a few holidays on credit cards. I kept making payments, they kept putting my credit limits up and I kept spending. The old, old story.

Then one day I woke up and couldn't service my debts. I had never added it up but when I did, I realised I owed £52,000. I've always had good jobs but even so, that's a debt no-one should run up.

When I look back now, I'm not sure how I coped with such a huge debt. I think I was glad I hadn't succumbed to a secured loan (I have a reasonable amount of equity in my house) but it sends shivers down my spine when I think of the amount of debt that faced, which was much more than my annual income.

Anyway, I embarked on a self-managed DMP. I didn't know that was what it was called in those days but I wrote to my creditors, made arrangements and lived on Tesco Value food for a year. And wore all the unworn or rarely worn clothes in my wardrobe. And didn't buy anything else.

I had no choice. I had no credit to rely on and my income was swallowed up by essentials and debt repayments. I think it's what you call a learning curve. And it's one that did me a power of good. For the first time, I had no credit to call on so I had to live within my income.

And I survived....

gettingbackontrack

I don't think I mentioned what my debt is now. Well, it's just over £8,000. i think I said on another post that it was below £8,000 but i was being a little optimistic. Still, what a couple of hundred between debtors....;)

Debtors. I remember reading Little Dorrit which of course features the Marshalsea prison. Just think, 150 years ago we'd all be living in a debtors' prison, using our limited incomes to pay for food and board and never paying off our debts. So things could be worse. :rotfl: What's a DMP compared with that?

Anyway, here I am, several years down the line from that light bulb moment and starting to feel optimism for the future. I don't really remember when the LBM moment was - I focus on what I've paid, not how long it look me to pay it. And it sadly wasn't a real LBM because I didn't want to change back then, but I had to change because the credit had run out.

So I lived on fresh air for a year while I paid off the two creditors who were most awkward (I suppose their awkwardness paid off but at least I got rid of them!). Then I paid off a credit card. And a catalogue debt.

And now, in February 2014, I am nearing the end of my M&S loan and two credit cards will be paid off by November, if I carry on paying as I am now. That leaves two cards, which will probably hike up the interest rate when i increase payments but I suppose that's par for the course. When I only owe £4,000 I shall be treated like a normal person rather than a bad debtor. :rotfl: That's progress!

jwil

Well done and good luck for clearing the last bit

gettingbackontrack

Thanks, jwil. It's still a tidy sum but compared to where I was, it's almost like being in credit. :rotfl:

I've basically been in debt since I was 18. I signed up for a student bank account with Barclays (my parents banked there in those days) and the cheque guarantee card they gave you (remember them?) was a Barclaycard. It was £100 limit.

Oh, if I knew then what I know now....:(

jwil

gettingbackontrack wrote: »

Thanks, jwil. It's still a tidy sum but compared to where I was, it's almost like being in credit. :rotfl:

I've basically been in debt since I was 18. I signed up for a student bank account with Barclays (my parents banked there in those days) and the cheque guarantee card they gave you (remember them?) was a Barclaycard. It was £100 limit.

Oh, if I knew then what I know now....:(

Yup, been there done that

savingmummy

I`ve subscribed to your diary so i can keep updated.

You`ve done amazingly well.
It shows with hard work and strict cut backs you can do it

I remember putting my long list of things i did to help me get debtfree (the first time) on a thread on DFW people were gasping behind their pc`s LOL!
Needs must as you know.
Well done x