The Debt Free Roll Of Honour

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  • Hello all!

    Lightbulb moment: June 2004

    Debts at highest: £27,000

    Debt-Free Date: 19th August 2005

    Pearl of wisdom: Pay with cash for stuff, rather than use cards. It sinks in quicker that you're spending money when you pay with cash.
    --
    Jen
    I'm saving for my car tax & MOT, due in June.
    January savings total:- £28.46
    February savings total:-£86.96
    March savings so far:-£14.76
    Total savings:-£130.18
  • cameo_2
    cameo_2 Posts: 11 Forumite
    Hrm I kind of wished I'd checked this site out sooner while I was actually in debt! Oh well, I got sent here looking for info about car insurance so decided to check out the forums whilst I was at it. Ive been driving a battered old Nova diesel whilst paying off these debts, cost me £300 initially and was cheap as chips to run. Happily I'm now in a position to go for something a bit nicer!

    Great to see posts by people that have got out of debt, a source of inspiration to those working to the same goal. For all those still in the mix, keep on keeping on! :beer:

    Here's my story

    Lightbulb moment: April 2005

    Debts at highest: £12,500

    Debt-Free Date: November 2006

    Pearl of wisdom: Short term pain for long term gain.
  • Toto
    Toto Posts: 6,680
    First Anniversary Combo Breaker
    Forumite
    The date of your lightbulb moment
    May 2006
    Debts at their highest
    60500
    Debt-Free Date
    Jan 12th 2007

    My debt came about when I left a high earning job to start a business, regular living expenses, servicing the mortgage, basically making ends meet, only I didn't realise at the time I wasn't meeting the ends at all, I was driving them further apart. By June 2006 I was feeling pretty desperate and didn't know how I was going to dig my way out of this mess.

    But, I came here and asked for help, and it came and came and came. I worked really hard to cut out all of the silly spending, bought things we needed as cheaply as possible, learned how to properly budget. And I suddenly started seeing credit cards as debt cards and I learned to hate them.

    As I had this stupid Interest only mortgage on my house I one day realised I was paying 50% more for my house than the guy down the road who was renting. I realised I was renting, from the bank, at a really horrible rate, and unlike a normal landlord who might hike up my rent once a year or so, this landlord had hiked it twice in 3 months. But, I was stuck in the 'must own a house at all costs' mindset. Then one day I had a chat with Lynzpower and she helped me see sense. The house had to go.

    To make this story short, I rented a house which was much bigger and in a better part of town, £500 per month cheaper than my mortgage. The sale of my house allowed me to clear the last £46,000 of my debts and left enough to start a nice savings account. I was previously paying over £2000 per month in interest alone, now this is going straight into savings.

    Pearl of Wisdom, not sure I qualify to have any of those but I guess it would be, debt is scary and a horrid place to be when you are struggling, but it is only money, it isn't worth more than you. If you feel scared and desperate, talk and ask for help, don't let it consume you and rob you of you. There is always a solution sometimes we just need a hand to see it.
    :A
    :A
    "Everyone is a genius. But if you judge a fish on its ability to climb a tree, it will live its whole life believing that it is stupid" - Albert Einstein
  • Toto wrote:
    debt free to self date.
    :confused:

    i have seen this on other posts but dont know what it means - can someone advise? thankyou
    are you sitting comfortably?, then I'll begin.....
    was at 01/01/07 now 03/07/07

    overdraft was 1500 now 1360 must try harder.

    loan was 13705.24 now 9791.62 due to be paid off 01/02/2011 but gonna aim for 01/05/2009!!

    amex cc was 4210 now 3650.48 lobt at 4.9% due to be paid off in 01/02/08
    total owed was £19415.24 now its £14802.10 going down!!!:money:
    I am proud to be dealing with my debt!
    just one day at a time, dont take on ANY NEW debt.
  • Hurdler
    Hurdler Posts: 1,360
    First Post First Anniversary Combo Breaker Mortgage-free Glee!
    Forumite
    Firstly - even though I had my lightbulb moment last year, a friend only introduced me to the site this month and it is awesome and inspiring!

    Lightbulb moment
    23rd June 2006 - After my father's funeral. Thanks to warring rellies taking offence at our celebration of his life, me and my ma were thankfully left alone... and in that moment (at the grand old age of 37) I grew up financially, right there and then!
    I'd taken out a consolidation loan several years ago and cleared it down, borrowed again from time to time... never ran to my folks for money, but when you only have one parent left... you really learn the meaning of it all.
    In helping her sort out her financials in what had been really dad's domain... I realised I needed to shape up and sort myself out!

    Debts at their highest:
    £10,000 when I first took out a conolidation loan.
    I was lucky enough to be selected as a "premier" client of my bank and one of the deals was a much more flexible, penalty free loan that acted as a credit account - draw down and repay whenever and no early repayment clauses
    Most recent debt was £3700 incorporating holiday and new kitchen costs

    Debt-Free Date:
    TODAY! (Friday 26th Jan 2007)
    Achieved by savings, a £400 rebate on double-insured buildings insurance and a compulary share buy-back which finally meant I could clear it completely.

    Pearl of Wisdom
    As the advert says... change 1 thing!
    The one thing I decided on for January was not to use the credit cards at all for a month (exempting those used for business as they are claimed back).
    If I couldn't pay for it in cash or in any of my debit accounts that serve as specific pools of money for specific things, then I couldn't have it.. end of!
    Next month's target now is to get saving so that eventually I can put down a hefty deposit on a house.

    Be realistic - I have a few things I need to do as well as save this year - some much needed new furniture and also some necessary lease extension bobbins for my flat... but the aim is to ensure that I lessen the use of the credit card and enjoy my life, but to keep my eye on the prize as well.

    Oh - and read this site! A lot of things I'd out in place when I had the original loan, like accounts for specific things (entertainment, cash allowance etc), savings pools/fountains, and budgets - I'd kinda started doing already!

    Thanks guys...
    • Mortgage @ March 2008: £194,965 ; Lightbulb Moment: July 2011: £164,926; End Date: March 2033
    • MORTGAGE FREE: September 2015
    • MSE 1p Savings Challenge 2023 #70: Jan, Feb, Mar, Apr, May, Jun, Jul, Aug, Sep, Oct, Nov, Dec = £667.95/£667.95
  • a. The date of your lightbulb moment

    August 2001

    b. Debts at their highest

    £15,483.52

    c. Debt-Free Date

    24th November 2006

    d. Your one perl of wisdom.

    Keep a spreadsheet of your outgoings so you know where your money is going, and where you can make savings. I also did a spread sheet of my debt, with a graph, so that I could see my debt dropping every month...very motivating!

    I love being debt free - It's a great feeling, and I am very grateful to Martin and everyone else who has posted on this website for all of their ideas, motivation and support.
  • Imelda
    Imelda Posts: 1,399
    Name Dropper Combo Breaker First Post First Anniversary
    Forumite
    Afternoon all,

    Debt at highest: £11,320
    Student Loan: £4,400
    Dad: £2,500
    Overdraft: £1,250
    Co-Op: £2,200
    Sofa: £970

    Lightbulb moment: February 2006

    Debt Free Date: 25th January 2007

    Pearl of wisdom

    Well, I'll admit that I received a bonus last April which paid a chunk of debts off, however it was this bonus which gave me lightbulb moment. Usually this bonus pays off any debt I have built up over the year but this time it didn't come close. I paid off all the highest interest bearing debt and moved the rest onto 0% (thank you Martin for telling us about the 0% on Barclaycard without a transfer fee if applied for in branch- I avoided all BT fees). I also paid my Dad off first because it didn't feel right owing him this much money.
    Anyway, that pearl, get organised I never knew where all my money went, I had one current account which everything went in and out of. I applied for the First Direct account (and got £50) and got my wages paid in there and transfered a set amount to my old "bills" account, I also saved for things like Christmas and car insurance for the first time ever. The remainder was for me and debt repayment. Since my debt was on 0% I set up a savings account and saved as much as I could each month (even transfering pennies into it was better than nothing). Finally, yesterday I realised that I had enough saved to pay off the last of my credit cards :T I did a poll on here to decide what to do as it was still well within the 0% period. The overwhelming majority said to pay it off, but, taking on board everything I have learnt here I have decide to stooze (is that the right word!?!). I am keeping the money in my savings account and will add to it each month just as I have been (it's easier to save when you already have some money in the bank right?). So, technically I am debt free right now.....

    Second pearl- spreadsheets! I keep a log of all ingoings and outgoings of all my accounts (I have 5, bills, spending, debt repayment savings, annual bills savings and ISA for long term savings). I keep a spending diary and I make sure I account for every penny spent. Yes, it's anal but being in control is the main thing.

    Thank you Martin! :money:
    Saving for an early retirement!
  • lynzpower
    lynzpower Posts: 25,311
    Combo Breaker First Post
    Forumite
    Hi all :D

    Well, after unning and ahhing, I think I am officially debt free. I yhave sold my flat, and have 37500 money in the bank. Although most of my debt is 0% Im going to keep the above money in investments and savings plans, and clear off the debts later when they convert to more than 0%.

    a. The date of your lightbulb moment
    March 06. When I joined here :D

    b. Debts at their highest

    im not 100% sure on this, but I joined here with 8160, It had been more than this, but I was whittling away the student loans. I estimate that at highest it was about 18k.
    c. Debt-Free Date
    Money came into my account today- so today, the 29.1.2007

    d. Your one perl of wisdom.
    I have plenty, but my favourite is work out the difference between want and need. Do you NEED new shoes, only answer yes, if they cant be repaired ( cheaper) you cant beg or borrow. If you NEED something, can you get it from a charity shop, outlet village, or with quidco cash back or some other such bonus. If you want it, resist.

    e. And if you had a debt diary on DFW, a link to it
    Certainly did :D here it is in its epic form :D
    http://forums.moneysavingexpert.com/showthread.html?t=202994

    thank you to MArtin, and every single person who has signed up who have contributed to the strength of this site. It has changed my life.
    :beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
    Theres no dollar sign on piece of mind
    This Ive come to know...
    So if you agree have a drink with me, raise your glasses for a toast :beer:
  • MushyPeas
    MushyPeas Posts: 3,104
    First Anniversary Combo Breaker First Post Debt-free and Proud!
    Forumite
    Wow, firstly congratulations lynzpower!

    Previous debt:
    £14K (joint with husband, but as I always looked after the money - obviously not very well! - I felt it was all mine)

    Lightbulb moment:
    Can't remember exactly, around 2000

    Debt free date:
    Sept '03 (when husband left, I said he couldn't have any money as I was payig off the final £150 of our debt - gosh I remember that well!)

    Pearls of wisdom:
    Blimey, how I wish this site had existed then, or I'd known of it! I did work out our payments buy hand which I think meant stuff took longer to pay off.

    Have a budget and stick to it.

    Use a spreadsheet to work out your budget and what you spend every month. It's scary to see how much goes down in 'misc' for example!

    Treat yourself every now and again so you don't splurge!

    Get support, I think I would have found it easier if I'd been able to chat to anyone else about it, but it was too embarassing.
    Previous debt: £14K :embarasse Debt free: Sept '03 :DMFW#42 Mortgage OP savings £4271.18/£12000 2019 :)Started dating OH Mar '12, married Oct '12, Walnut born Dec ' 12 :A SPC 12: 99 £38.05/£500 Make money Jan: £412.34/£310 :T Feb: £88.79/£280 May: £215.52/£310 June: £18.98/£300
  • Lightbulb moment:
    August 2006, when I told my b/f


    Debt free date:
    Will be Nov 2009 :T

    Debts at highest :
    £20,000

    Pearls of wisdom:
    I tried to hide the fact i was in debt, once i told my b/f (had been seeing him for 8 months) he told me to go to talk to local Citizin advice, i was so nervous about going in, but the guy i saw said he was here to help me and he did, i went for trust deed and i am now paying back more than half what i was paying out every month.

    Now when i go to buy something i ask myself do i really need this, i am now saving up to go to Oz next January with b/f :D
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