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Now completely debt free
Redbedhead
Posts: 1,131 Forumite
The final payment went out this morning for my car loan and we are now completely debt free (well except for the mortgage but I am working on that!!).
It is a fantastic feeling and I am so glad we made the cutbacks. Our situation was not as bad as some on here and we are both lucky to have reasonably well paid jobs, so that helped.
I had a small amount of 'revolving' debt when my now H moved in. I swapped it from 0% card to 0% card and never actually paid it off. It didn't desperately worry me as it was 'only' £3k.
H moved in and I assumed his financial situation was ok - he had been living at his parents and I figured he should actually have savings - I was wrong. He left a credit card statement out and I was shocked to see he owed nearly £10k. On talking to him about it and adding that to his car loan of £10k, he was pretty much £20k in debt:eek:
Luckily he really wanted to resolve the debt and pay it off and decided to stop his 'head in the sand' approach. We set a budget for him and I then did one for myself. We lived in my house and I had been used to paying the bills on my house so we cut his rent to a nominal amount on the understanding he threw the rest at the debt.
Well, he did really well. He went from someone who always bought his lunch and would spend lunchtime buying DVDs, CDs and computer games, to taking his lunch in and not buying anything. We cut down on the expensive nights out and I made sure he told me if he was short of money and then we would both stay in together rather than put pressure on him to go out and not be able to afford it.
I cleared my debt (except for the car loan) by September 2005 and looked at paying off the car loan to find I would have penalties, so I instead concentrated on overpaying the mortgage and saving.:j
H took all the overtime that was available. It was a bit of a struggle as it meant there were times we barely saw each other and weekends were spent working and sleeping, but it was worth it. The car and car loan was swapped for a smaller, more economical and cheaper car. Then we decided we would try life as a one car family - 18 months later we are still doing that. Finally in April 2006 he made the last payment:T
So, it has just been a waiting game until the car loan had finished. I thought it was last month but a check of the paper work indicated a final payment month, being this month. And it has gone. No loan.:j
This isn't mean to gloat to those who are still in debt. I think what I am trying to say is often 2 heads are better than 1. If you or your partner is in debt - share the problem. The other person may be able to help, not necessarily financially, but often in being supportive.
I am so glad we stopped our spending where we did. We still have a fantastic time and probably still spend far more than most would consider sensible on the things we love like holidays, but we no longer get in debt for it or waste money - we consider our priorities and don't think we can have it all, all of the time.
It is a fantastic feeling and I am so glad we made the cutbacks. Our situation was not as bad as some on here and we are both lucky to have reasonably well paid jobs, so that helped.
I had a small amount of 'revolving' debt when my now H moved in. I swapped it from 0% card to 0% card and never actually paid it off. It didn't desperately worry me as it was 'only' £3k.
H moved in and I assumed his financial situation was ok - he had been living at his parents and I figured he should actually have savings - I was wrong. He left a credit card statement out and I was shocked to see he owed nearly £10k. On talking to him about it and adding that to his car loan of £10k, he was pretty much £20k in debt:eek:
Luckily he really wanted to resolve the debt and pay it off and decided to stop his 'head in the sand' approach. We set a budget for him and I then did one for myself. We lived in my house and I had been used to paying the bills on my house so we cut his rent to a nominal amount on the understanding he threw the rest at the debt.
Well, he did really well. He went from someone who always bought his lunch and would spend lunchtime buying DVDs, CDs and computer games, to taking his lunch in and not buying anything. We cut down on the expensive nights out and I made sure he told me if he was short of money and then we would both stay in together rather than put pressure on him to go out and not be able to afford it.
I cleared my debt (except for the car loan) by September 2005 and looked at paying off the car loan to find I would have penalties, so I instead concentrated on overpaying the mortgage and saving.:j
H took all the overtime that was available. It was a bit of a struggle as it meant there were times we barely saw each other and weekends were spent working and sleeping, but it was worth it. The car and car loan was swapped for a smaller, more economical and cheaper car. Then we decided we would try life as a one car family - 18 months later we are still doing that. Finally in April 2006 he made the last payment:T
So, it has just been a waiting game until the car loan had finished. I thought it was last month but a check of the paper work indicated a final payment month, being this month. And it has gone. No loan.:j
This isn't mean to gloat to those who are still in debt. I think what I am trying to say is often 2 heads are better than 1. If you or your partner is in debt - share the problem. The other person may be able to help, not necessarily financially, but often in being supportive.
I am so glad we stopped our spending where we did. We still have a fantastic time and probably still spend far more than most would consider sensible on the things we love like holidays, but we no longer get in debt for it or waste money - we consider our priorities and don't think we can have it all, all of the time.
MFIT No. 81
0
Comments
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Congratulations!!!
Thanks for posting - it's nice to read something really positive. You're obviously part of a fab team!!
I know only too well how hard it is to keep focused on the debts but I hope to be feeling like you soon
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What a nice post! Congratulations! Really good to hear such a positive resolution. Keep on enjoying those holidays!2023: the year I get to buy a car0
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Congratulations!
Together you have cleared the debts and built a sound relationship so two huge achievements for the price of one!I can cook and sew, make flowers grow.0 -
WEll done to both of youYou're not your * could have not of * Debt not dept *0
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Brilliant! Very well done, It must feel great - I can't wait to be debt free.
Now go sign the debt free roll of honour in the sticky at the top, if you haven't already.Official DFW Nerd No 096 - Proud to have dealt with my debt!0 -
Congrats... great story and great to hear!Debt at Lightbulb Moment #4 (December 2010)
MBNA - [STRIKE]£3463.35[/STRIKE] £3770.94 Halifax -[STRIKE]£3822.25[/STRIKE] £0.00 Cleared! First Direct [STRIKE]£1437.95[/STRIKE] Cleared! Nat West £2256.22 Black Horse -[STRIKE]£300[/STRIKE] £71
Private Loan - [STRIKE]£500[/STRIKE] Cleared!!!
Total - [STRIKE]£8085.84[/STRIKE] £6098.160 -
:j :j :j congratulations :j :j :j
your story is in inspiration.
MCBLBM July 2006 debt 1st August 20060 -
Congratulations to you both, I am sure your mortgage will be gone in no time too!Successful women can still have their feet on the ground. They just wear better shoes. (Maud Van de Venne)Life begins at the end of your comfort zone (Neale Donald Walsch)0
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Congrats!
You two should be really proud of yourselves and don't worry about spendings lots! You only live once and as long as it is your money and not the banks you have a right to enjoy yourself.
Again... well done :TDon't ever be anybody's slogan because you are poetry
Loan HSBC: £1952.44 (7 more payments of 278.92 left)
CC HSBC: [STRIKE]£3691.11[/STRIKE] £2,070 (0% until 15 July 2007)
:mad: :eek:
Total: [STRIKE]£6246.64[/STRIKE] £4022.44
:j :j Debt free by xmas 2007 challenge :j :j
Mortgage: [STRIKE]£79,500[/STRIKE] £78,861.23DFW Nerd Club Members 556
Proud to be dealing with my debts0 -
WELL DONE!!!!! CONGRATULATIONS!!!0
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