Paddington's Debt Free Journey

BlueJ94

Paddington75 said:

jadewest94 said:

Paddington75 said:

Getting closer to payday so transferred another £20.00 to the emergency fund, so that now stands at £1,384.87.  Have worked out my budget for March and April again, forgot it was Mother's Day in March so needed to factor that in.  

You're doing so well! I have payday off work so I can sit at home with the dog and budget, this will be my first time in years I'll feel in control! 

Thanks, it's taken me a long time to get to the point where I can comfortably make minimum payments on debts, let alone overpayments!  Quite honestly if I'd known all about DMP's and stuff like that back when I first got into debt I would have done one of those.  As it was I muddled along by myself, constantly taking payment holidays on one debt so I could afford to pay another one.  At one point I really was in quite dire straits with three maxed out credit cards all with quite high balances, and one that the minimum payment didn't even cover the interest every month!  On top of that I had a loan that my bank pushed on me (relentlessly ringing me at home, at work, on my mobile etc even when I asked them not to but that's another story!).  When I look back at the level of debt I used to have I feel sick.  I don't know the exact amount because I just used to bury my head in the sand and never actually counted it up properly but it would have been between £20,000.00 and £25,000.00. 

Would you believe this all started with a bloody £500.00 M&S charge card way back when I was probably about 19 or 20?!  I was then sent a mastecard by them without asking for me (I believe they got into trouble for this a while afterwards) and every year without fail they would increase my credit limit by £1,000.00 until eventually it was £10,500.00.  How I ever got any other form of credit I don't know but it was like they were throwing money at me and like an idiot I took it.  

It was only after I'd finished off paying the loan to my bank that I managed to make any headway with it.  A few months after my loan had finished I was applied for a balance transfer credit card and to my astonishment I was accepted.  I transferred some of the credit card debt on to that and closed the old ones down, then about six months later I applied for another balance transfer and was accepted for that as well, so that was more debt transferred to 0% and the old cards closed down again.  Eventually I got to the point where all of my credit card debt is on 0% and is at a much more manageable level. 

I learnt a very painful lesson that believe me I will never repeat.  I'm in my 40's now and have been in debt for far too long.  Once these cards are paid off that's it, I'm done and I will never ever own a credit card again.  Sorry for the essay, that felt good to get off my chest!

Wow! That's a bit naughty of M&S!! 
Glad you got it off your chest! I'm slowly learning from my mistakes, I started off with a catalogue payment thing. I owed £160 at 17 with no income, why they even agreed to me having it I will never know! Now a few years later and 6k in debt!! Myself and my OH are looking into getting a house eventually and I told him how bad my credit score it and that we won't be getting one anytime soon! That's what motivates me, getting a decent house with my OH and no debt besides a mortgage which would be manageable to pay! I will get there some day!

Paddington75

Sarahwithlove said:

It's crazy the amount it credit that lenders can get away with giving people without any kind of consequences. Especially at a young age where someone has had no teaching about finances. At least they learn something at school now but don't know if it's still enough really. 

I know, as soon as you hit 18 you get bombarded with offers of credit cards, overdrafts etc.  If I could go back in time I would never have got that bloody chargecard!  It's certainly been a very expensive lesson that's for sure.

Paddington75

jadewest94 said:

Paddington75 said:

jadewest94 said:

Paddington75 said:

Getting closer to payday so transferred another £20.00 to the emergency fund, so that now stands at £1,384.87.  Have worked out my budget for March and April again, forgot it was Mother's Day in March so needed to factor that in.  

You're doing so well! I have payday off work so I can sit at home with the dog and budget, this will be my first time in years I'll feel in control! 

Thanks, it's taken me a long time to get to the point where I can comfortably make minimum payments on debts, let alone overpayments!  Quite honestly if I'd known all about DMP's and stuff like that back when I first got into debt I would have done one of those.  As it was I muddled along by myself, constantly taking payment holidays on one debt so I could afford to pay another one.  At one point I really was in quite dire straits with three maxed out credit cards all with quite high balances, and one that the minimum payment didn't even cover the interest every month!  On top of that I had a loan that my bank pushed on me (relentlessly ringing me at home, at work, on my mobile etc even when I asked them not to but that's another story!).  When I look back at the level of debt I used to have I feel sick.  I don't know the exact amount because I just used to bury my head in the sand and never actually counted it up properly but it would have been between £20,000.00 and £25,000.00. 

Would you believe this all started with a bloody £500.00 M&S charge card way back when I was probably about 19 or 20?!  I was then sent a mastecard by them without asking for me (I believe they got into trouble for this a while afterwards) and every year without fail they would increase my credit limit by £1,000.00 until eventually it was £10,500.00.  How I ever got any other form of credit I don't know but it was like they were throwing money at me and like an idiot I took it.  

It was only after I'd finished off paying the loan to my bank that I managed to make any headway with it.  A few months after my loan had finished I was applied for a balance transfer credit card and to my astonishment I was accepted.  I transferred some of the credit card debt on to that and closed the old ones down, then about six months later I applied for another balance transfer and was accepted for that as well, so that was more debt transferred to 0% and the old cards closed down again.  Eventually I got to the point where all of my credit card debt is on 0% and is at a much more manageable level. 

I learnt a very painful lesson that believe me I will never repeat.  I'm in my 40's now and have been in debt for far too long.  Once these cards are paid off that's it, I'm done and I will never ever own a credit card again.  Sorry for the essay, that felt good to get off my chest!

Wow! That's a bit naughty of M&S!! 
Glad you got it off your chest! I'm slowly learning from my mistakes, I started off with a catalogue payment thing. I owed £160 at 17 with no income, why they even agreed to me having it I will never know! Now a few years later and 6k in debt!! Myself and my OH are looking into getting a house eventually and I told him how bad my credit score it and that we won't be getting one anytime soon! That's what motivates me, getting a decent house with my OH and no debt besides a mortgage which would be manageable to pay! I will get there some day!

Yes it's certainly been a learning curve but so easily done.  At the time you just think of it being free money with no thought as to how you're going to pay it back.

I never thought I would be able to afford a house, especially with my credit file being the way it was with a string of late payments.  Luckily I never had any defaults or CCJs or anything like that, I never let it get that far it was always just late payments constantly or taking stupid payment holidays.  I'm proud to say my last late payment was in February 2015 so will drop off my file soon.  

I was left some money in a Will and I thought, "you know what, this is my opportunity to get on the property ladder".  I was really nervous about applying for a mortgage as my husband knew nothing of my debt (I know, I know!) and I was so scared they would turn us down and it would be my fault as he's never had a credit card or anything like that and so has always been much better with money than me.  But we were accepted, and by a high street lender as well.  They took my credit card debt into account when they did the affordability checks and we were able to get the mortgage we wanted so all good.

CRANKY40

I'm another that started with a £500 credit card aged 18. Add to that leaving home and getting a mortgage aged 18 together with very expensive travel to work (worked in London but bought a flat in Kent because it was the only place that we could afford) and that's how the downhill slide started. I'm a lot older now, but until the last year, not a lot wiser apparently. 

BlueJ94

Paddington75 said:

jadewest94 said:

Paddington75 said:

jadewest94 said:

Paddington75 said:

Getting closer to payday so transferred another £20.00 to the emergency fund, so that now stands at £1,384.87.  Have worked out my budget for March and April again, forgot it was Mother's Day in March so needed to factor that in.  

You're doing so well! I have payday off work so I can sit at home with the dog and budget, this will be my first time in years I'll feel in control! 

Thanks, it's taken me a long time to get to the point where I can comfortably make minimum payments on debts, let alone overpayments!  Quite honestly if I'd known all about DMP's and stuff like that back when I first got into debt I would have done one of those.  As it was I muddled along by myself, constantly taking payment holidays on one debt so I could afford to pay another one.  At one point I really was in quite dire straits with three maxed out credit cards all with quite high balances, and one that the minimum payment didn't even cover the interest every month!  On top of that I had a loan that my bank pushed on me (relentlessly ringing me at home, at work, on my mobile etc even when I asked them not to but that's another story!).  When I look back at the level of debt I used to have I feel sick.  I don't know the exact amount because I just used to bury my head in the sand and never actually counted it up properly but it would have been between £20,000.00 and £25,000.00. 

Would you believe this all started with a bloody £500.00 M&S charge card way back when I was probably about 19 or 20?!  I was then sent a mastecard by them without asking for me (I believe they got into trouble for this a while afterwards) and every year without fail they would increase my credit limit by £1,000.00 until eventually it was £10,500.00.  How I ever got any other form of credit I don't know but it was like they were throwing money at me and like an idiot I took it.  

It was only after I'd finished off paying the loan to my bank that I managed to make any headway with it.  A few months after my loan had finished I was applied for a balance transfer credit card and to my astonishment I was accepted.  I transferred some of the credit card debt on to that and closed the old ones down, then about six months later I applied for another balance transfer and was accepted for that as well, so that was more debt transferred to 0% and the old cards closed down again.  Eventually I got to the point where all of my credit card debt is on 0% and is at a much more manageable level. 

I learnt a very painful lesson that believe me I will never repeat.  I'm in my 40's now and have been in debt for far too long.  Once these cards are paid off that's it, I'm done and I will never ever own a credit card again.  Sorry for the essay, that felt good to get off my chest!

Wow! That's a bit naughty of M&S!! 
Glad you got it off your chest! I'm slowly learning from my mistakes, I started off with a catalogue payment thing. I owed £160 at 17 with no income, why they even agreed to me having it I will never know! Now a few years later and 6k in debt!! Myself and my OH are looking into getting a house eventually and I told him how bad my credit score it and that we won't be getting one anytime soon! That's what motivates me, getting a decent house with my OH and no debt besides a mortgage which would be manageable to pay! I will get there some day!

Yes it's certainly been a learning curve but so easily done.  At the time you just think of it being free money with no thought as to how you're going to pay it back.

I never thought I would be able to afford a house, especially with my credit file being the way it was with a string of late payments.  Luckily I never had any defaults or CCJs or anything like that, I never let it get that far it was always just late payments constantly or taking stupid payment holidays.  I'm proud to say my last late payment was in February 2015 so will drop off my file soon.  

I was left some money in a Will and I thought, "you know what, this is my opportunity to get on the property ladder".  I was really nervous about applying for a mortgage as my husband knew nothing of my debt (I know, I know!) and I was so scared they would turn us down and it would be my fault as he's never had a credit card or anything like that and so has always been much better with money than me.  But we were accepted, and by a high street lender as well.  They took my credit card debt into account when they did the affordability checks and we were able to get the mortgage we wanted so all good.

Yes exactly! I literally had no income and they still gave me the catalogue.

Yeah I'm the same and I think without the inheritance I'm going to be getting soon I wouldnt know what to do with myself. 

This past year I've thought to myself do I want to continue to live like this? No is the answer. I'm still getting loan and cc offers which blows my mind! 

astrocytic_kitten

CRANKY40 said:

I'm another that started with a £500 credit card aged 18. Add to that leaving home and getting a mortgage aged 18 together with very expensive travel to work (worked in London but bought a flat in Kent because it was the only place that we could afford) and that's how the downhill slide started. I'm a lot older now, but until the last year, not a lot wiser apparently. 

My debt started with a credit card during freshers week that I think I only got so I could get the free wok they were offering 🤦‍♀️ I’m horrified looking back at how naive and clueless I was about money and particularly about credit, I had no idea.

BlueJ94

astrocytic_kitten said:

CRANKY40 said:

I'm another that started with a £500 credit card aged 18. Add to that leaving home and getting a mortgage aged 18 together with very expensive travel to work (worked in London but bought a flat in Kent because it was the only place that we could afford) and that's how the downhill slide started. I'm a lot older now, but until the last year, not a lot wiser apparently. 

My debt started with a credit card during freshers week that I think I only got so I could get the free wok they were offering 🤦‍♀️ I’m horrified looking back at how naive and clueless I was about money and particularly about credit, I had no idea.

Honestly, this would be something I would of done!

Paddington75

CRANKY40 said:

I'm another that started with a £500 credit card aged 18. Add to that leaving home and getting a mortgage aged 18 together with very expensive travel to work (worked in London but bought a flat in Kent because it was the only place that we could afford) and that's how the downhill slide started. I'm a lot older now, but until the last year, not a lot wiser apparently. 

Crazy isn't it how they throw money at young people like that.  It pains me to think how much interest I've paid over the years to credit companies etc, but you live and (eventually!) learn

Paddington75

astrocytic_kitten said:

CRANKY40 said:

I'm another that started with a £500 credit card aged 18. Add to that leaving home and getting a mortgage aged 18 together with very expensive travel to work (worked in London but bought a flat in Kent because it was the only place that we could afford) and that's how the downhill slide started. I'm a lot older now, but until the last year, not a lot wiser apparently. 

My debt started with a credit card during freshers week that I think I only got so I could get the free wok they were offering 🤦‍♀️ I’m horrified looking back at how naive and clueless I was about money and particularly about credit, I had no idea.

Yes I really wish they would teach these sorts of things at school, I personally think they are far more practical than metalwork or woodwork!  Well, I suppose those types of skills are practical for some people, but I think they should teach "life skills" to kids too.  

Paddington75

Payday today so £150.00 paid into the emergency fund, and funds transferred over to the food budget account.  I opened another account with my bank last night online so I now have one account for bills, one for food budget and the third one will be for my personal spending money.  Treated myself to a couple of new books today, was trying not to buy any more until I'd read all the ones on my bookshelf but I couldn't resist.  Still it was a relatively small spend so not too bad.  Plan on going to Aldi sometime over the weekend to see if I can reduce my food budget for this month.