Big debt, accountability, 2026 check in

Shfdebtfree

Hello all, long-time lurker/reader of advice and thought a good time to put a pen to paper and have a chat about my debt journey.

I’m 34, in 2010 at 18, I walked into a Lloyds TSB branch and a member of staff helped me pay some money in and then wanted to discuss a Credit Card. I was daft and signed up to it, I worked in Asda on £6.25 per hour and they gave me an Avios/Airmiles credit card with a limit of £1,500. Here is the start of my poor relationship with money, being given a credit card with no real checks. It usually sat at the limit and I would pay the minimum payment required each month. After some time, I went to University and paid it down with student maintenance loans, but due to not being able to work full time (I did an NHS course with full time placement hours for 26 weeks of the year) my credit card then became my income. The limit increased once or twice and so did my debt with it. When I qualified and got into full time work, my poor relationship with money continued and over the next 7 years my debt grew, I balance transferred to a large card once, moved out, increased limit, took out another card to transfer and then before I knew it I had two cards with about £16,000 on I think plus the original CC.

This carried on and then when I bought a house every expense went on credit, holidays went on credit, petrol, food, everything on credit cards with minimum payments. Before I knew it I had two cards at £12k and £13k, and 3 other cards with about £5k on so I took out a consolidation loan in 2024. Stupidly, and predictably, I left a card open with £4k on to keep paying but another card with £12k limit. As predicted, this filled up as the minimum payments on the loan and CC took up too much of my salary so along came more CC. Eventually my loan repayments were around £1,500 so I looked at one last consolidation loan to pay all, or most off and close cards which I was declined for.

I couldn’t afford to live, I had decent enough salary of £2,850pcm but when £1,500 goes on debt, £400 on the mortgage, £450 on the car, £400 on bills I had £150pcm for petrol, groceries, leisure etc. so couldn’t afford to pay the day to day.

I hit rock bottom, I had never earnt as much but had so little, was depressed, saw no real way out of debt. I did lots of reading up on here, and also Debtcamel – I read up on Stepchange, told my partner and got a plan together. I entered a DMP in September 2025

Total balances;

• £45,000 - Zopa Loan (taken out April 2024)
• £11,900 - MBNA Credit Card
• £4,500 - HSBC Credit Card
• £2,500 - Lloyds Credit Card
• £2,200 - Barclaycard

At its worst ~£65,000 of personal debt. £1,500pcm repayments

When I entered the DMP I had paid it down to;

• £33,000 - Zopa
• £10,600 - MBNA
• £2,300 - HSBC
• £2,500 - Lloyds
• £1,700 - Barclaycard

~£50,000ish

I read about, and decided to make some affordability complaints, I used templates on Debtcamel which I found very useful to structure. The FCA upheld two complaints and declined two. They thought MBNA has increased my limit too high without asking me, so ordered them to wipe £900 from my balance. With Zopa, they said appropriate checks hadn’t been made and the loan was unaffordable for me and didn’t leave me with enough money to live and save. They ordered Zopa to remove the interest and any negative FCA markers, so about £15,000 written off.

As of today my debt stands at £29,000, with £16,000 written off and £20,000 in repayments. Its still huge but luckily on a 5 year mortgage which is up for renewal just after my last default 6 year limit is up. On current trajectory I am due to be debt free in 2029. I am saving £600pcm into a sinking fund and haven’t used credit for over a year, which isn’t long but is the longest I have been since being an adult. My relationship with money has changed massively, and my entire life is different. I have a new job and take home around £600pcm more after tax which is going onto the debt so I can pay in lump sums, I plan to write to PRA to negotiate some reductions as some of the debt may not be enforceable before it is cleared.

Also had an issue with Santander when we sold the last house and bought the current one. We bought off family a cheaper house so wanted to port the mortgage. We passed the MIP but not long before we were due to complete Santander senior underwriter pulled the plug due to my affordability. Had to pay about £9,000 in fees. We complained and they gave us £7,500 as ‘good will gesture’, Ombudsman has since ordered them to pay the rest with interest and to pay £150 for the stress caused. Luckily Accord approved us within 24hours and they have been good so far. I wanted to share to show the numbers can be big and scary, but there is always a plan, there is always someone to listen and help, and the best thing to do is just ask for it.

And yes I do it and think what that £65,000 could have gone towards if I hadn’t been such an idiot with money.

Catscoffeecake

Welcome to the boards! Well done on your debt repayments so far, the affordability complaint certainly has helped. What's your plans now? will you make any extra payments towards debt to clear it quicker? what about your mortgage? you say its 5 years, when does it actually end? are you making any overpayments? You mention a £600 a month into a sinking fund, have you put together a budget to see how much of a sinking fund you need and what could go towards debt?

riverbluelion

Thank you so much for sharing, I’m new here, I’ve followed and wishing you all the best!!! 😊