Champagne supernova’s debt free to savaholic diary

ChampagneSupernova36

Hi all ,

Im going to start documenting my journey to financial stability and security. I have a post about my DMP here : https://forums.moneysavingexpert.com/discussion/6509459/at-the-end-of-my-2nd-dmp#latest

My story is as follows:

Debts at their highest - £11, 274.34

Debt-Free Date (projected) -  July 2024

Debts March 2024:  2,970.73

Monthly Payments: £745

I was on a DMP from 2017 to 2020 and cleared off about £6000 odd. I was quite positive and determined to stay debt free from this moment but by December 2021 I had to go onto another DMP. I go into a bit more detail in my thread I linked in the OP but basically we all know was 2020 was like, my work wasn’t as frequent and I had more outgoings than incomings and also struggling a lot with my mental health.  Not having enough to cover my bills lead to my applying for any sort of credit I could get my hands on, not necessarily the best rates either, I was despairing try to juggle all of my bills and put on a brave face pretending I wasn’t dying on the inside. I’m happy to say that I have since recovered from my depression and I think it really was one of the main reasons I went into debt a second time, because I did not deal with this root cause. Basically, as well as not having enough to cover all my rent and bills and work commute, I was overcompensating for my unhappiness by splurging in the shops, I just couldn’t have enough …. It was like, nothing was gonna make me happy so I just kept spending because for a little moment it did make me feel better. Something like a new outfit or pair of shoes etc. 

it sounds bloody stupid to even say it out loud now, because who thinks shopping is going to make them better? But I hope there is someone in here who can relate to that. If there is anyone who can relate, I just want you to know that things do get better and you deserve happiness and you are and have enough. My mindset now is just that, I already have enough. This was something I didn’t quite realise before hence my repeated debt but I am a noticeably different person now, I can feel it in my outlook and mindset.

That’s why now I feel more determined than ever to save save save. I had a massive clear out this week as well, all those clothes and shoes etc I bought whilst I was building up debt. It felt therapeutic to get rid of it, no more reminders of that time in my life. The only reminder I have left is my DMP, so when that’s gone I really do think it’ll be a totally clean slate. 

I was actually able to get one of my debts remaining balance cleared as the ombudsman upheld an unaffordable lending claim, it was only about £250 but it certaintly helped. For that, I used one of those companies that advertise… now I KNOW not a soul on this website would recommend a company to do this for you, so this week I have written directly to my other creditors with a template letter I got from debt camel (with advise and research from this forum also) to see if I am able to at least see what my creditors say about unaffordable lending. One of my creditors, for example, is 118118 money for a £4000 loan that with interest is £8000!!!!! Now, in my new mindset it actually makes me feel sick, but like I say, at the time I was desperate and anyone who could offer me anything was a life line.

So, how have found it? Well recovery from depression was hard but very liberating. The last few months I have been throwing absolutely everything into clearing this debt, I have upped my contributions to the absolute maximum I can afford because now I really just want it gone. Looking at my total debts of more than £11,000 was frightening and I had accumulated it in such a short space of time. I’ve stopped kicking myself about it now as it’s a pointless exercise… I can’t turn the clock back and behave differently but I can be in charge of my own destiny and future and that Is
what I am focussing on now. I must admit there was a couple of times where I felt down in the dumps about it, I couldn’t spend how I was spending and I couldn’t splurge at the shops if I was down but now I have other outlets if I am feeling a bit blue some days. We all have off days and now I’m much more open to talk about my feelings and make sense of them. It felt like such a slog at times and felt like I was barely making a dent into it but patience is a virtue sometimes and now the end is very much in sight… if you are at the fed up stage just know that your day will come where you can finally be free of debt but it just requires a bit of restraint and hard work and dedication to get there. Any sort of dent you make is an achievement so don’t overlook it and be kind to yourself, also, do not dwell on what has happened all you can do now is go forward.

So now I have a couple of months to go and here I am …

I will be documenting the rest of my journey and my savings goals, I feel like being open and talking about things really helps me.

I really enjoy reading other people’s success stories and then their savings goals so this is something I hope to add to.

I’m looking forward to my post in July where I can finally say that I am debt free !!

Hope you can all join me along the way 

E x

Karonher

Good luck. You have done well so far.

EssexHebridean

Welcome to the diaries board! 

FootyFanDan

Good luck

Petal88

Oh welcome! Tell us more? How did you end up in debt? How have you found the repayment journey so far? 

ChampagneSupernova36

Petal88 said:

Oh welcome! Tell us more? How did you end up in debt? How have you found the repayment journey so far? 

I wrote you quite a long, detailed response to this but added it to my OP as I realised I was quite vague about my journey so far! So see the post at the top for a full insight

ChampagneSupernova36

Karonher said:

Good luck. You have done well so far.

FootyFanDan said:

Good luck

EssexHebridean said:

Welcome to the diaries board! 

Thank you all , have updated the OP with a bit more detail and context x

ChampagneSupernova36

Getting down in the dumps at the final hurdle

last week, I got an email from stepchange titled ‘the end of your DMP is near’… a great email to receive and the end really is in sight !

however, I have a predicted end date of July and the last few months feel like such a slog … I’ve really REALLY tightened my budget since January, going up from £231 month to £745 thus clearing my debts in about 7 months as opposed to the projected 25 months… I’m finding the budget bearable but really no room for manoeuvre, £231 meant quite a bit more income but of course it is overall more beneficial to put the extra money towards debts.

im just finding the last bit slow and painful , it feels like it’s never going to end and feels like such a drag. With the tightening of my budget , I can’t go out for meals as much etc and feel like a caged bird. I KNOW it’ll all be worth it in just a few weeks but I want to record these feelings as it is all very much part of my journey. 

Once debt free, I want to look back and remember what it was like to be making these repayments and having debt hanging over my head. I don’t want to feel this way ever again and so I am determined to power through and get my debts gone and never feel this again !!!

E x

WinterWarrior

A brilliant post, you can do this! It’s a great plan and the pain will help you learn the hard lesson. Just think of the relief when it’s gone. 

ChampagneSupernova36

WinterWarrior said:

A brilliant post, you can do this! It’s a great plan and the pain will help you learn the hard lesson. Just think of the relief when it’s gone. 

Thank you for being so uplifting!! It’s a challenge at the moment but a worthwhile one 

Lonelygambler

You’ve come so far. It’s nearly over for you. You can do it