Lucky Break

QueenThistle

Hi!
I've been lurking around these forums for a long long time and have finally got up the courage to post. As you will see as I go on, my situation has improved hugely from where I was a couple of years ago but I need to not mess up again, take the opportunity i've got to become debt free and stay that way!
Due to stepping down to a lower paid job around 4 and a bit years ago (28K a year to 18) because I couldn't handle the stress of my job and it was literally ruining my life I got more and more into debt. When I made the decision I stupidly thought I could manage but clearly couldn't! After maxing out an overdraft of £1500, several credit cards and struggling to pay an existing car loan I even more stupidly went down the path of payday loans. Resulted about 6 months down the line of not being able to pay my half of the mortgage and having to come clean to husband and parents. Parents lent me money to clear my o/draft so I could pay the mortgage. Amazingly my bank agreed to give me a £10K loan and I consolidated the lot.
I did ok for a couple of months but then the overdraft started to creep back up until I was in the post on again where I used payday loans. This escalated over the next year or so until I was using 2 different payday lenders every month, staggered to pay the other off. Whilst racking up another 4K on credit cards. Another humiliating visit to my parents followed and they agreed to be garuntees on a loan for me to pay off the payday loans and my overdraft. I had come up with this wonderful idea, thinking paying £170 a month repayments would be affordable. Again, managed it for about 3 months till I pretty much had a breakdown to my husband who after bo*****ng me, paid off the ridiculous amigo loan with a 0% credit card he was offered.
At this point (about 2 years ago) I got myself a new better paid job and have kept myself on the straight and narrow and not increased my debt. Today I'm 9 payments off paying my HSBC loan, £300 overdraft and £4000 on credit cards which I have just transfered to a 0% for 3 years Barclaycard as my credit score has improved. This morning I recieved a letter to say they are refunding me £2780 in interest due to not sending me statements!! I'm so happy I could cry! Rang HSBC for a settlement figure on my loan and it's £2030. So as soon as the money hits my account i'm paying it off. £300 to put me back in the black, £250 on credit card and £200 in my savings account. Just to sit there and me look at!
So the next thing is to get my £4000 credit card and the £2000 on my husbands paid off. I totally accept that my debt is my own doing, by spending what I don't have and continually putting my head in the sand, but I am kind off proud that I have paid off a £10000 loan and never missed a payment on anything. There have been times where i've had literally no money for 2 weeks of the month for months on end, I have lied to my husband about my financial situation endlessly and put on my parents. Living with my debts for the last 4 years has been horrible and I NEVER want to feel the way i've felt again. This weekend's job is to work out monthly budgets. I will throw extra at the credit cards but will leave myself a little bit every month just to spend and treat my little girl!
Sorry for the very long post but as you can probably gather I wanted to get all this off my chest!

[Deleted User]

Welcome felt I couldn't just read and run!


I wish I could create a new definition most people who take out and pay back a 'payday' loan will always be the strongest and determined to fix it by whatever means necessary so it's not all bad x

QueenThistle

Thank you for replying Deleted User. Yes definately determined to never get myself in such a mess again. It would be very easy for me to try to blame the payday loan companies but at the end of the day it was me that asked them to lend me it! I think the good thing that has come of the situation is that I am much more aware of where every penny goes and i'm not afraid to say 'no I can't afford to do that' anymore x

enjoyyourshoes

Hi


daily reconciliation of bank account with running balance is crucial


Include all transactions (internet and pay at pump-often no written record), all SO/DD, ALL Credit card purchases, cheques and the accrual for the annual 1/2 & 1/4ly bills (paid into a savings account)


Don't pay any insurances monthly they charge you credit, pay annually as above (save for it monthly)


Don't be a slave to compound interest be ts master


Save with regular savers every month, HSBC/First D/Lloyds


Debt is a result of all those litt;e £1's spent, fags, mags, booze, lotto, treats, snacks, water from petrol stations, coffee etc etc, drip by drip by drip by drip


Solve the spending and the 'above' and stick it all in savings


good luck

LondonGirl252

Well done! That must be a wonderful feeling! If you're reviewing your budgeting look at YNAB, honestly can't tell you how much that has revolutionised my spending. I now have the cash for all annual bills ready for when they come around, buffers and about to start savings, its a great bit of software. If you watch the webinars you can sometimes win a free copy!