End In Sight

GillsMan

What a great site this is - and what great forums! I'd like to contribute in any way I can. I consider myself fairly 'credit savvy' these days, but even so there's so much information on here to learn and share. I thought I'd briefly explain my story.

About four years ago I moved in to a flat with my then girlfriend (and now wife) aged just 22 and it was very difficult. Neither of us had very well-paying jobs and life was a real struggle. At one point we had to take a loan out for just £1,500 from the only organisation who would lend to us - Household Bank - at an extortionate APR! We were very poor and that money not only covered bills and rent, but our food for a month!

When we got better paying jobs I think we fell victim to the Buy Now Pay Later culture so indicative these days. We were offered more credit and we took it, accumulating a sizeable amount of credit card debt (boo). Eventually we decided to get on to the property ladder, but in order to afford it, we both had to take out a large loan (mine was £7,500, hers was £9,500). This took care of our credit card debt as well as other loans and the money we needed to get onto the ladder.

Then came the wedding and honeymoon; even though we were both on good money by now, we still paid for everything by credit card (wedding was under £7,000, though). We are now saving for a bigger house (baby on the way), but we are armed with a much more savvy sense of money.

So what have we learned? Well, in future, if we want something, we're just going to save for it. We're well versed in saving now! For example, our loans cost us £400 per month, but we're overpaying on one loan by an extra £400 per month so that it will be paid off by the time we buy a new house (and take on a bigger mortgage). Our minimum monthly payments on our credit cards total just £75 but we actually pay £600 per month on these.

The criminal thing is that if we weren't paying all this money, we'd be able to save so much and we'd be in a much better position now. Everyone here is in a different situation, but for those who are tempted to buy luxury items on their credit card: don't! Save up for it first, you'll feel much better for it!

Meanwhile, we should hopefully be debt free within a year, which would be great for us as a young family! Hopefully, we'll never get into debt again!

Poosmate

Hi Gillsman and welcome to DFW on MSE.

Congratulations on learning how troublesome debts can be at such a young age. You're in a fabulous situation to be able to have a great financial life ahead of you. I only wish I had a site like this to refer to years ago.

I have debts which I am paying off but my tunnel is very long and there must be a few bends in it because I can't see the light at the other end yet! I know it's there somewhere! lol

I hope your post is an inspiration to others - it's certainly lifted my spirits.

All I can add is that I hope you are saving a lump for when your little lump arrives, I guess it'll probably be a bit tough when your wife goes on to maternity pay!

Congratulations on the pregnancy, hope all goes well for you both.

Best wishes

Poo

clearmydebts

Hiya,

Just wanted to say I enjoyed reading your thread and well done on all the overpayments. Just think about the nice lifestyle you will have when you are DF next year!

My own road will be a bit longer but I am determined to get there in the end. My LBM came when my OH went back to Uni. We are surviving on one wage and it gave us a kick as we realised the amount of money we wasted in the past. My OH is looking for part time work (course finishes July 2009) & anything he earns will be saved in an ISA/paid off loan/paid off CC's.

I am 5 years older than you and 26 is about the time when my spending went a bit crazy! I wish I had more sense but better late than never. I look forward to hearing how you are getting on.

jak

I know what you mena RE: paying back money. I also think all the time that the money we spend in debt repayments could go towards a better life too. At least you've bought your house. That is the next step for us!
Good lcuk with your debt repayment and good luck with the baby!
J
X

GillsMan

Hey all, thanks for your very kind comments. It's a long way for us yet, and by the time we're debt free we're going to have a baby, which will be hideously expensive!

I'm glad to see that I'm not alone in having regret for the times I spent before I had that money. I guess it just shows there's a million different reasons why people are in debt. I just wish I'd been on this site years ago. Oh well, we live and learn I suppose!

chimp_choker

Poosmate wrote: »

Hi Gillsman and welcome to DFW on MSE.

Congratulations on learning how troublesome debts can be at such a young age. You're in a fabulous situation to be able to have a great financial life ahead of you. I only wish I had a site like this to refer to years ago.

I have debts which I am paying off but my tunnel is very long and there must be a few bends in it because I can't see the light at the other end yet! I know it's there somewhere! lol

I hope your post is an inspiration to others - it's certainly lifted my spirits.

Best wishes

Poo

Hang in there poo, my tunnel like yours was long but mine double doubled back on itself like a coiled snake ready to strike. Now it's there....... the chink of light that is getting brighter by the day. Soon it will be so bright i'll have to wear shades..... as the song goes...

Keep the faith.
Chimp

Poosmate

Thanks Chimp.

I have only just started my journey into debtfreeness. May is the first month I've been able to make any kind of inroads into my debts. Only £163 but at least it's coming off the debt and not going onto it. I know that, slowly but surely, it will come down and eventually I'll be debt free. Yay!

I am finally getting myself into a position where I will be able to pay things like car tax, insurance etc. that would have previously been put onto my CC.

Thanks for the words of encouragement. I know I'm in for the long haul and barring any extreme interest hikes I'll manage ok.

Thanks again

Poo