You CAN do it...

Harry_BullZak

Hi all,

In August 2010 I joined this forum. I was in desperate need of help. I was in around £52k debt (the actual amount was higher than I thought back then), going through a relationship break-up and felt that I had no options.

Although it’s clear (looking back) that I found it difficult to explain the full situation, reaching out was the right thing to do.

As I said in late 2010, everything came to a head. Relationship had crumbled, money troubles had hit an all time low (or high depending on how you see it), and everywhere I turned I got the same advice/answer - go in to debt management or bankruptcy.

Debt management is the right thing for a lot of people to do, but for me, I needed to learn the true value of money again. I was a bit frivalous and felt that debt management would not teach me anything. I needed to learn to sacrifice.

And although I felt I was in a helpless situation I sat down, drew up an Excel spreadsheet and started to work out a budget, not just for the next few months or a year, but up until 2019.

I got some more advice. Contacting the various charity run debt agencies was a perfect step. I was given lots of helpful information and was given some extremely good advice. Websites and forums also proved very helpful, especially reading those stories of people who had managed to pull themselves from the brink of collapse.

The only problem was that the advice always seemed the same. "It's going to take you 5-8 years to get yourself back on your feet using debt management but it would be your only option". "You're probably better off selling your flat".

This made no sense to me. I had that spreadsheet. I could see the light at the end of the tunnel. Yes it was a few years away, but I could see that glimmer of hope.

I had 8 creditors. £52k to pay off and I wanted to do it within 5 years. So I put my head down and worked up a plan.

From August 2010 to January 2011 I started contacting all 8 of my creditors pleading with them for deals. None of them would budge, until I finally managed to get MBNA to give me a 3% interest rate on 2 of my higher debts totalling around £11k. This kicked in March 2011. During this time, I was living in a flat with my now Ex-girlfriend. Which if anyone has ever lived under that circumstance will know it is soul destroying. It also proved to be impossible to meet anyone else, well that and the fact that I had probably about £10 left over for an entire month. So in March I made a deal with the Ex to take over the full ownership of the flat, putting me at even more financial risk. By April I decided to rent out the flat and move in to my Dad’s place. At the time I was renting at a loss of £500 per month compared to my mortgage, but was actually better off by about £100. Oh and what a difference that £100 would make. Using that £100 I added an extra £10 to 6 of my debt payments and putting everything else on the highest interest debt. I was very poor, continuously in my overdraft, I couldn’t afford any social outings, no new clothes, but I could see by using the spreadsheet what the sacrifice could mean. I continued like this getting slightly better off by £10-£20 per month until eventually 11 months later, March 2012, I was able to clear the highest interest rate debt completely. I had also over that period managed to work myself out of my overdraft.

At that point I had lived in my overdraft for probably about 3 years continuously. My bank contacted me to cancel my overdraft. Still to this day I do not have an overdraft facility. This decision though ’forced’ me to be even more controlled with my cashflow. It was a blessing in disguise, because no matter what happened going forward my spreadsheet no longer could have a red figure with a - next to it. A huge mental lift. I was also truly lucky, the odd repairs etc needed to be done at the flat, but my sacrifices had started to pay off. In August 2012 one such benefit of this sacrifice was that I was then able to negotiate a new deal for my mortgage, instantly reducing my £500 loss on rental to just £95. Still a loss but starting to get somewhere.

By November 2012 I still had no money in my pocket and pretty much all I did was work & sleep, but I did manage to clear 1 more of my debts. I had not applied for any new credit for at least a year. Before then I simply could not get anything anyway so I took the advice I was given and stopped applying. This method along with my payments to my creditors being paid impeccably on time had repaired my credit enough that I was able to get a 0% credit card with a limit of £4,500. I was over the moon as I expected to get nothing! This allowed me to start to consolidate my debt and although I was still paying the same amount each month the 0% rate meant I was making a bigger dent.

In December 2012 I made a final loan payment. Saving me over £280 per month. Which of course was used to make further payments on my remaining 5 creditors.

In January 2013 I was then able to negotiate a consolidation loan reducing my total creditors from 5 to 2. This enabled me to make bigger payments on the 0% card further reducing my debt.

One thing I haven’t mentioned is that in November 2012 I met my current girlfriend or as many men will testify debt number 9. Haha

I jest, but the reality was that this beautiful girl would not stick around for too long if all I did was continue my behaviour of the last 2 years of just staying at home and not going out. To be honest I had had enough anyway. So as the relationship started to blossom I stopped throwing £,£££s at my debt and reduced the payments so I could finally have a life. This of course slowed down the rapid pace I was paying off my debt, but even so, before the 0% deal ran out in April 2014 I had cleared that debt and at that point only had £11k in debt remaining.

It’s now August 2014. 4 years on from the start of my journey. I have a total of about £8k remaining to pay off which is due to be cleared by February 2015. I probably would have been debt free if I didn’t meet someone but I needed to meet her. I needed some excitement after what had been a very tough period of my life. I needed to feel free. And I do.

I’ve also in that period been able to get a better job with better pay. Renegotiate a better rent so I no longer rent my flat at a loss. I’m still at my Dad’s but now I am looking to buy another property for myself and girlfriend to live in. I’ve paid off over £40k of my debt in just 4 years and have a credit rating of 999. Although it’s not likely I’ll be applying for any credit (other than a mortgage) any time soon.

Finally, things are looking up!

rockm87

This is incredibly inspiring.massive well done for all your hard work so far.

DawnW

Thanks for sharing your story. Very inspiring

mrsp89

Well done!! You've done fantastic!

Harry_BullZak

Thank you guys.

I will keep this updated as I have a few PPI claim responses due which might actually go some way to clearing my debt even sooner.

lulu_92

Wow, this is amazing to hear. No longer will I moan about my lack of disposable income!

MrsSmith2013

Very inspiring! I too track all my debt and accounts in excel, I find it helps to see it in black and white, or black and red as the case may be!

Good luck on the rest of your journey, you're on the home straight now!

1of3

Well Done!

Very inspiring story

PinkPoppies

:T:T:T

Very inspirational!!

nearlytherenow

A wonderful story that will inspire lots of others, thank you for sharing

Caterina

Well done, amazing inspiring story. Have you considered contacting a newspaper and selling your story? They seem to like publishing this sort of feel good hopeful stories, and you would get something to go towards your remaining debt (or a well deserved mini splurge with your beloved!).