Finally debt free - my story, there is hope!

BRtelg

Hi All

I just wanted to share my story & the fact that I am now debt free, in hopes that it will show others who are feeling down, that it really can be done.

I have had various store cards over the years which were used on and off, with varying high balances, and I always made the minimum monthly payment, or slightly more, but never paid them off in full. I also stupidly allowed an overdraft I had to get to default status. All of this started several years ago when I had just turned 20 and my attitude to finances was nothing like what it is today. I finally decided I needed to start sorting these things out if I ever wanted to do the big things, like get a mortgage, apply for car loans etc in the future if needed.
I am now almost 30 and my attitude towards money is a lot different, and I realise how stupid I was 10 years ago, but alas, nothing can be done about the past now, other than trying to sort out the mess I made. I have been cutting back on everything which I considered non essential (going out alot, buying clothes than are not needed etc) and trying to save hard. I also moved from renting a 1 bedroom flat on my own to being a lodger with a family friend so my bills etc were greatly reduced. Of course it hasn't been as enjoyable as having a place of my own, but I knew for the sake of my long term situation, it needed to be done. I have also tried to make various other sacrifices over time in order to save as much money as possible.
I have been making regular payments to all my store cards each month, slowly chipping away at the overall balances. I can finally now say with great relief that my final payment was made not too long ago on my last remaining balance, and I have closed the accounts. I now only have one credit card in my name, with a £0 balance.
As for the defaulted overdraft, I came to an arrangement with the DCA and did a partial settlement in December 2015. I had purposely set aside a chunk of my salary each month to pay this off. Although it was a large sum of money to hand over, I feel relieved that it has now been dealt with. I have had confirmation from them that the original company, themselves and no other DCA will pursue me again in relation to it.
I am now debt free ... (and a lot less stressed!)
The only thing I am truly sad about now is the fact the default is ruining my credit file status, and will not drop off for another 3 years. Fortunately there is nothing else on there that will be detrimental to me when applying for credit. I am wanting to apply for a mortgage this year, but with this default, I'm not sure it will be possible & I guess I will need to wait a bit longer.

I guess my overall point is that my debt may have been a lot more or a lot less than other people on this forum, but we all suffer from the same feelings at times I'm sure (feeling hopeless, that things will never get better, feeling low). I felt these and a range of other emotions at times, but it can be resolved with time & determination. It has been a long old road.
For anyone still fighting this battle with sorting out their debts, I wish you all the best, and really hope you get where you want to be.
Thank you for reading, and don't give up!

jchrispin

Lovely story. The trick is now not to do it again!

BRtelg

Thanks jchrispin - I will never make the same mistake again, lesson well and truly learnt! I was young and foolish, and never bothered to consider how it would affect my future. I have a friend who is in her early 20's and is starting to make the same bad mistakes I did at that age (maxing out cards and not paying them off) which is not good!

chelseablue

Congratulations!


Also, we applied for a joint mortgage and my partner had a default from 4 years ago, and the mortgage was approved

andyfromotley

Well done,

if you ask on the mortgage board there are definitely lenders who will consider a default, a good broker will help.

Alternatively three years will let you save a good deposit and make sure the habits are ingrained.

I have a question for you, when we first start to sort out our finances most of us are looking for a secret tip or bit of financial wizadry which will sort things out. Most of us end up realising, like you, that the only real way to do it cut out luxuries, spend less and keep ploughing on. Were the sacrifices worth it?

BRtelg

chelseablue wrote: »

Congratulations!


Also, we applied for a joint mortgage and my partner had a default from 4 years ago, and the mortgage was approved

Thanks chelseablue. My default is just under 3 years old, so I might need to wait a little longer I think. Was yours just a small default?

BRtelg

andyfromotley wrote: »

Well done,

if you ask on the mortgage board there are definitely lenders who will consider a default, a good broker will help.

Alternatively three years will let you save a good deposit and make sure the habits are ingrained.

I have a question for you, when we first start to sort out our finances most of us are looking for a secret tip or bit of financial wizadry which will sort things out. Most of us end up realising, like you, that the only real way to do it cut out luxuries, spend less and keep ploughing on. Were the sacrifices worth it?

Thanks andyfromotley. I've been on the mortgage board but due to the fact I'm looking to buy in wales using the help to buy scheme, there are limited lenders to start with and I don't think many/any are willing to consider me until more time has passed. I've also been putting aside money for a deposit whilst sorting out all of the stuff from my original post & my mum has also contributed part as a family gift so I have that side of things sorted, it's now just a waiting game I think until the default is old enough.
In response to whether it was worth it, I often felt like it wasn't whilst I was making the sacrifices, mainly because at the time I was in my mid to late 20's, and a lot of my friends were out having a good time & I often had to decline due to the situation I was in. I was often tempted to say 'screw it' and just go out and enjoy myself all the time. But I stayed strong and stuck to my final goal, and have to say now that I have reached it, it was definitely worth it! I guess it's normal to feel negatively about it until you get where you want to be, especially when it takes years. But now that i'm there, I'm glad I made the sacrifices for sure.