How long did you take paying off your debts and how did you do it?

Bossofmoney

Iv just started my journey. Had my "lightbulb moment" (as iv seen it called on here) last week. Only way is up now.
Iv around £44,500 to go. It doesn't phase me, iv got good health and a happy family, all the support I need to get through it.

I think with hard work and a bit of luck I can clear it in under 3 years. 4 at most.

Its a lesson learned that you cant put a price on.

jazzyja

Kiwistrawb1990 said:

Managed to clear 3.5k (overdraft and credit card) in 3 months.
My basic take home pay is 2.1k a month, so I did some overtime making it 2.8k a month.
Then I cancelled some subscriptions, and drew out £100 a week to live on for the first month. By the second month I'd started to live on £50 a week.
My monthly outgoings (minus debt) were £905.
Strict budgeting is definitely the way forward if you're able to! 

Thats brilliant well done! My outgoings are pretty similar to yours! I earn 1800 without any overtime. With overtime approx 2200. I'm aiming to have my cards paid by august! I haven't actually sat down and gone through allll my outgoings (il be honest I'm actually a little scared ) I do have a car on finance which I dont really include in my debt total simply because its 10k and I cant see myself without a financed car (meaning after this is paid chances are id probably get another!). My Apr on my car is only low ive 3 years left on that. My 2 cards are both 0% but one runs out in August so thats the want I need to quickly shift. I have a phone and sky which I'm tied into and I spend wayyyy too much money eating out. But obviously since the current crisis I've saved loads and it's massively put everything into perspective 

jazzyja

enthusiasticsaver said:

£3.5k is not a massive amount to shift.  We never had historic debts but when we had 0% debts for a big holiday, piece of furniture or a car we worked it out aiming to clear asap and just cut back on all other spending. The most we ever borrowed (apart from our mortgage ) was £8k on interest free credit for a car over 2 years but we already had a house so there was no rush to clear it. If it is a relatively short period of time it is quite easy to just say no to most things and focus entirely on getting rid of the debt.  A lot of people do what they call the scenic route but it seems to take forever to get it cleared then and I am of the opinion I just want it gone as quickly as possible. What is your monthly income and your fixed expenses?  

If you want a mortgage my advice would be work out using an online calculator how much your mortgage repayment would be based on the amount  you would be able to borrow and cost of properties in your chosen area and direct that amount towards the debt.  Obviously if you are  paying high rent at the moment though you may have to take that into account. 

Not only will you have to repay the debt though you also have to save a deposit and money for fees, moving expenses and furniture. The debt has to go first though.  

Hi yes it's not a huge amount no. And £400 of that is a next account....its pretty old. I use it now and again. Really not sure whether to not pay that in full and just  shift that abit slower?? I dont know how to look best on my application. I do have a car on finance which I didnt include....i owe just less than 10k on that with 3 years left. My outgoings are 1500 but my boyfriend pays half of that so really its 750. (He has no credit because he's literally never had anything on finance, buys everything upfront) also he's self employed so he's not going on the mortgage. I'm currently doing a whack load of overtime. I'm saving 500 towards the house and I've booked in 2 weeks of overtime on top of my annual leave and I should be able yo shift 1 card away from that! My 0% ends on one card in August, the other ends may 2021. Im hoping to have both gone before the year is out. I've put my savings into a lifetime isa I can't withdraw from that until next may so thats a year to get my deposit. I've saved 1500 so far in that. I've done a calculator and it does say I could borrow 120k. I wouldn't want to borrow that much im only aiming for 100k to maybe 110k. Im not after anything fancy. I'm not wanting to live above my means. I just want a decent house. My rent is £500 a month (the house is horrendous) so I'm easily pleased to be honest. Aiming for 10k deposit. God im so desperate. To the point im losing sleep and its all I think about

jazzyja

Bossofmoney said:

Iv just started my journey. Had my "lightbulb moment" (as iv seen it called on here) last week. Only way is up now.
Iv around £44,500 to go. It doesn't phase me, iv got good health and a happy family, all the support I need to get through it.

I think with hard work and a bit of luck I can clear it in under 3 years. 4 at most.

Its a lesson learned that you cant put a price on.

That's a good attitude and you know what if I had my mortgage I'd probably be the same. But I know i need to shift this to get where I want. Good luck with your journey

jazzyja

enthusiasticsaver said:

£3.5k is not a massive amount to shift.  We never had historic debts but when we had 0% debts for a big holiday, piece of furniture or a car we worked it out aiming to clear asap and just cut back on all other spending. The most we ever borrowed (apart from our mortgage ) was £8k on interest free credit for a car over 2 years but we already had a house so there was no rush to clear it. If it is a relatively short period of time it is quite easy to just say no to most things and focus entirely on getting rid of the debt.  A lot of people do what they call the scenic route but it seems to take forever to get it cleared then and I am of the opinion I just want it gone as quickly as possible. What is your monthly income and your fixed expenses?  

If you want a mortgage my advice would be work out using an online calculator how much your mortgage repayment would be based on the amount  you would be able to borrow and cost of properties in your chosen area and direct that amount towards the debt.  Obviously if you are  paying high rent at the moment though you may have to take that into account. 

Not only will you have to repay the debt though you also have to save a deposit and money for fees, moving expenses and furniture. The debt has to go first though.  

Also forgot to say my income without over time is 1800ish. With overtime approx 2200. But i can literally work as much as earn as much as i want, I'm a nurse so as you can imagine work isn't limited. But I'm also a mother which comes before anything else. So I only do the overtime I need to save.

master_blaster_44

I paid off £44k in 8 years through a DMP with step change, but be careful this MSE lark is addictive as I then paid a similar amount off my mortgage in 4 years and am now mortgage free

zippygeorgeandben

Had about £20k of debt in September 2016 and started chipping away at it.  Became debt free in 2019.

jazzyja

zippygeorgeandben said:

Had about £20k of debt in September 2016 and started chipping away at it.  Became debt free in 2019.

master_blaster_44 said:

I paid off £44k in 8 years through a DMP with step change, but be careful this MSE lark is addictive as I then paid a similar amount off my mortgage in 4 years and am now mortgage free

That is amazing guys congratulations!! Have you found your whole attitude towards money and spending has changed since you became debt free? I've always been a very impulsive person when it's come to money. I'm pushing 30 and ALWAYS been in some form of debt. Saying that, my start in life and teenage years wasn't the best. So any money I earned from jobs I just blew. Now I'm wiser with a decent career so I'm hoping I can stop being so impulsive and living above my means. I 100% do not want to EVER spend on a credit card again......but ive said that before and here I am 

zippygeorgeandben

Thanks for the congratulations.  My attitude has completely changed.  I am not saying I just threw money away beforehand but my mindset was definitely different.  I have attached the link to my story.  It's the sticky at the top of the LOAN board, because at that time, in 2016, I was convinced I needed a loan and to consolidate my debt.  If I see anyone contemplating debt consolidation on MSE, I'm on that thread quicker than a cheetah moves in the desert telling them the pitfalls!
https://forums.moneysavingexpert.com/discussion/5567669/unsure-whether-to-consolidate-please-advise#latest

enthusiasticsaver

jazzyja said

Hi yes it's not a huge amount no. And £400 of that is a next account....its pretty old. I use it now and again. Really not sure whether to not pay that in full and just  shift that abit slower?? I dont know how to look best on my application. I do have a car on finance which I didnt include....i owe just less than 10k on that with 3 years left. My outgoings are 1500 but my boyfriend pays half of that so really its 750. (He has no credit because he's literally never had anything on finance, buys everything upfront) also he's self employed so he's not going on the mortgage. I'm currently doing a whack load of overtime. I'm saving 500 towards the house and I've booked in 2 weeks of overtime on top of my annual leave and I should be able yo shift 1 card away from that! My 0% ends on one card in August, the other ends may 2021. Im hoping to have both gone before the year is out. I've put my savings into a lifetime isa I can't withdraw from that until next may so thats a year to get my deposit. I've saved 1500 so far in that. I've done a calculator and it does say I could borrow 120k. I wouldn't want to borrow that much im only aiming for 100k to maybe 110k. Im not after anything fancy. I'm not wanting to live above my means. I just want a decent house. My rent is £500 a month (the house is horrendous) so I'm easily pleased to be honest. Aiming for 10k deposit. God im so desperate. To the point im losing sleep and its all I think about

Next store cards are expensive so I would pay that off asap.  Prioritise that over the 0% cards. Obviously try and pay off the one expiring in August before you start paying interest on it. It sounds like you have a good plan if you are able to save £500 a month towards your house deposit in addition to paying off the cards.  The way to look good on your application is to have as little debt as possible.  A loan is better than store cards or credit cards and do not apply for other credit for 6 months before applying for a mortgage. Having a credit card is fine but paying it off in full each month is a good way to increase your credit rating so once the debt is gone use the card regularly then pay off in full each month.