Nearly Debt Free

lambda

Hi All,

I have been on this forum for some time, mostly hiding in the background, positing now and then in the DFW threads and trying to help others.

As you can see from my signature, I was over £13k in debt last year. Since October 2015, we've been through a very tough and frustrating time paying it back. I have just over £3k left to pay.

I think November will be our debt free month, as I will be receiving some extra income in terms of expenses that are due (£800), and my parents who understand our situation are giving us an early wedding present of £1500. We are also paying back almost £1000 a month off the CCs normally, so this should be enough to clear the CC forever.

I am 34 years old. This will be the first time I will be debt free since about 2003, when I extended my overdraft for the first time as a student. Since then, I was very irresponsible with money. I bought things I couldn't afford, took loans, spent on CCs, etc. I was stupid. I think I had my lightbulb moment sometime in the summer of 2015, when we realised this was crazy. We need to grow up and sort this problem out. We have been very lucky since then. I got a promotion at work, and my partner started a job after 3 years at uni. Our income doubled, but we decided to throw everything we could at the debt. I have used YNAB every day since October 2015. I no longer spend anything on CCs. I have closed one that was paid off in June, and I'll be closing this next one when it is paid off. It has been a very frustrating time, but an experience I will never forget. It has truly made me appreciate the value of money and the responsibility that goes with it.

I just wanted to let people know that we are nearly there, and I'm not sure how I feel about it. Exhausted is probably the closest thing.

Take care everyone! I'll keep you posted on the last payments we'll be making in the next couple of weeks.

EssexHebridean

This is fantastic to read - you've done so well! Exhausted now will give way to am immense sense of relief when you make the final payments, I bet!

enthusiasticsaver

Brilliant and well done. Excellent you have managed to clear it in relatively little time. You must have been very focused. You have learnt some hard lessons in the last 13 years but come out the other end and these budgeting skills you have learnt are an essential life skill. Look forward to seeing you gain your debt free badge hopefully by end of next month.

lambda

Thanks!

We were extremely lucky - we both have good jobs and we could (just about) afford to pay that much back every month. However, it wasn't easy - and you are right about focus. There wasn't a single day gone by when I didn't think about clearing my debt.

It is also crucial to have your partner 100% committed and supporting you. I couldn't have done it otherwise.

lambda

Well, today I got paid. I got my expenses + £1500 from my parents + £600 contribution from my partner. For the first time in my life I had (just) over 5 grand in my bank account!

I've just made a payment of £82.31 to my PO card and a whopping £3350.60 to my BarclayCard.

This leaves £1198 for our direct debits, £123.04 for groceries, £90.23 for fuel (I put in £30 on my way to work) £147.88 for incidentals (every day spending and entertainment) and £75 in a buffer.

It'll be a wee bit tight in November but nothing that we haven't survived easily before.

My bank actually declined my payment to the BarclayCard! I had to call them up. Just standard security. Went through fine after that. Just waiting for the balances to clear on the CC statements now.

I feel empty.

A subway for a lunch treat today. I've earned it.

louby40

Well done! That's fantastic

Congratulations - hope you enjoyed your Subway!

lambda

Thanks! It was yum.

Back to homemade soup tomorrow, though!

aminenirmo

Thanks, I'll have another look at it tomorrow in the daylight

Ilona

aminenirmo wrote: »

Thanks, I'll have another look at it tomorrow in the daylight

Have you had a look at it yet?

Ilona

Learning2Budget

Congratulations. You've done very well! Looking forward to the feeling of being debtfree. Thanks for the inspiration. L2B xx

jimmy900

Very many congrats lambda, your approach puts my juvenile response to personal finances to absolute shame.

I see many parallels with how we acquired and continued the debt cycle but my running away and your taking ownership is really inspirational.

Big respect.