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  • FIRST POST
    DNW
    Shocking Myself Straight
    • #1
    • 3rd Apr 11, 5:23 PM
    Shocking Myself Straight 3rd Apr 11 at 5:23 PM
    Although I have most definitely had a true LBM now, I only wish it had happened years ago. I have been going through some (previously unread/cursory glanced at) statements and analysed just one of my many cards - in the last 12 months I have been paying MBNA around 200 a month (minimum payment) and paid off just 82.50 of my balance. From payments of 2400 this is just crazy

    To anyone thinking about burying their head in the sand just that little longer, please please take it out now and make a real start on sorting things out - I wish I had done it way back when it was just a little flicker of a candle rather than waiting for a spotlight in the face moment. I could have been so much further into this journey if only I'd listened to that little nagging voice in the back of my head

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    Last edited by Former MSE Penelope; 12-04-2011 at 8:23 PM.
    LBM Feb 11 - Joint Debts of around 80,000 And nothing significant to show for it

    Actual Debt at March 11: 79,269.65
    Debt as at July 11: 82,483.16 Thanks to fees & charges!
Page 1
    • bottleofred
    • By bottleofred 3rd Apr 11, 5:25 PM
    • 2,876 Posts
    • 13,686 Thanks
    bottleofred
    • #2
    • 3rd Apr 11, 5:25 PM
    • #2
    • 3rd Apr 11, 5:25 PM
    Hi DNW,

    Well done on your lbm. I also had mine way too late and hope others learn from our mistakes.

    Good luck

    Red
    If you've nothing decent to say, perhaps you shouldn't say anything.

    2 savings jar 300
    Total credit card debts 1250 - Will I ever learn!!
    • secretshopper75
    • By secretshopper75 3rd Apr 11, 5:40 PM
    • 1,272 Posts
    • 12,080 Thanks
    secretshopper75
    • #3
    • 3rd Apr 11, 5:40 PM
    • #3
    • 3rd Apr 11, 5:40 PM
    I agree, I daren't even try to think how much I've repayed over the years without seeing any benefit...wish it was law that this was printed in big red letters on the statement...
  • DNW
    • #4
    • 3rd Apr 11, 9:14 PM
    • #4
    • 3rd Apr 11, 9:14 PM
    But then if it was in big red letters I guess they wouldn't have as many thousands/millions of gullible customers seeing their credit cards as a way to get through things rather than the evil, monstrous things they truly are

    I am so glad that my credit rating is going to reduced to zero, I never ever want another penny of credit again in my life. I've been in debt ever since going OD on my very first wage packet some 24 years ago - it's taken me this long to come to realise the amount of money I've literally been throwing away every month in interest just because I have to have things right now, not next week or month when I've saved for them, or because I have no contingency fund as I've given it to the CC co's in interest each month.

    I'm quite ashamed of the life I've lived in this respect but it feels quite empowering to know that I am now the one in control. I know this is very much the beginning of the journey, and there are going to be a lot of tough times ahead for a very long time - but I'm hoping that with a lot of hard work and determination, by the time I hit 50 in 10 years time we will finally be debt free (apart from the mortgage, but we're not even thinking of tackling that one just yet!) and be able to start living the life we should have had if only we weren't giving so much of our cash away each month.

    It's so heartwarming and encouraging to read the DFD thread, it has made me see that there are others out there with even more debt than we have, but who have now come out the other side much wiser (and richer!) people. They are such an inspiration as are all of the stories on MSE
    LBM Feb 11 - Joint Debts of around 80,000 And nothing significant to show for it

    Actual Debt at March 11: 79,269.65
    Debt as at July 11: 82,483.16 Thanks to fees & charges!
  • happyhaddock
    • #5
    • 3rd Apr 11, 10:25 PM
    • #5
    • 3rd Apr 11, 10:25 PM
    Brill post DNW!. It's a great feeling once you step off the credit/debt money-go-round and realise there is more to life than "getting stufff". It's just a shame that it takes most of us such a long time for the penny to drop, and by that time the damage has been done. I am now teaching my kids to live within their means and if they want something they have to either save up for it, or sell items they don't need anymore to pay for the new one
    • AlyBaly
    • By AlyBaly 4th Apr 11, 9:21 AM
    • 286 Posts
    • 1,519 Thanks
    AlyBaly
    • #6
    • 4th Apr 11, 9:21 AM
    • #6
    • 4th Apr 11, 9:21 AM
    Really enjoyed reading your post. Totally understand the feeling of why did we not have a LBM years ago but the main thing is your there now and focused on getting things sorted out. I wish you all the very best on your debt free journey and yes you will have tough times ahead but at least there is light at the end of what sometimes feels like a very long tunnel. We are not quite there yet but with one year to go I see a chink of light shining through !
    Good Luck and keep reading and posting , it helps to be about people who truely understand.
    January


    LBM May 2008 Debt Free January 2012
  • Andie759
    • #7
    • 4th Apr 11, 10:05 AM
    • #7
    • 4th Apr 11, 10:05 AM
    I totally understand - I'm in the same position at the min with my CC and it's so annoying! Good luck and I'm sure you'll get there
  • wigwam
    • #8
    • 4th Apr 11, 12:34 PM
    • #8
    • 4th Apr 11, 12:34 PM
    Thought I was reading my post there!!
    Yes I had the same LBM with MBNA very recently - they are now my number 1 debt to get rid of.
    I called them up to query this - apparantly they take 5 off the balance plus interest

    I feel your pain! - Suggest you overpay or switch to a cheaper card asap!! I'm stuck with a rubbish credit rating so planning on getting rid of this balance with a vengeance!

    Good luck
    LBM March 2011: CC14697 2968; CC2 3873.293754 CC3 2972 2807 ;CC4 3100Loan900300
    Pay off in 2011 challenge:
    2034.28 / 6000[SIZE=1] 4841/10000 (started March - total payments, updated end May!)


  • Swinstie73
    • #9
    • 4th Apr 11, 4:23 PM
    • #9
    • 4th Apr 11, 4:23 PM
    I've just became debt free today after having my LBM 2.5 years ago, it's the first time in 20 years I've been completely debt free (apart from small mortgage), just thinking of all the money I've spent over the years make me sick, I could be rolling in it by now. It's a great feeling but now the worry for me is slipping backwards *baby steps*.
  • Mrs Trouble
    MBNA were the chain around my neck too, I think I paid 83p off the debt with a monthly payment of 120!!!

    I thought paying the minimum on time showed I was dealing with them but it didn't. Your post mirrors my life, a lot of debt and not a great deal to show for it now. The relief I feel now I am dealing with it is immeasureable.

    Good luck
  • DNW
    Happyhaddock - my kids are really quite good with money too, I have taught them about budgeting in a way that I only wish I had been taught! It's definitely a 'do as I say, not as I do' when it comes to this!

    Well done Swinstie!! I hope to be in your position one day. Scrub that - I will be in that position one day



    Thanks all for the support, this place is great

    Unfortunately I don't think we'll be able to transfer the MBNA balance to another card as we've just cancelled all the DDs and about to start making token gesture payments until I find another job so we may be stuck with it It's shocking that they can get away with taking a measly fiver from the balance and the rest in interest, I know I made the decision to use the card and accept responsibility for that fully, but it still doesn't make it right that they can charge so much.

    Talking of charging, I just got off the phone with my mortgage co Santander (they were still Abbey when we took it out so hadn't quite the reputation they have now) - I was changing my DD account details with them (all new shiny no OD, no fees, no credit cashminder account now coming in to play!) and also asked if I could move the payment date from 1st to 16th to fall in with pay day... they said that I could do, but it would cost me 270 for the privilege I think I'll leave that.. I can use the 270 to pay an extra 1 off my MBNA card lol. I've got to learn the new skill of budgeting anyway, so guess I'll just have to get used to the fact that my biggest payment goes out 2 weeks after pay day

    Another strange thing has been happening.. we've been getting SMS texts to the home phone from Frederickson International - but we haven't actually defaulted on anything yet, in fact we're still up to date with minimum payments at this point in time (but won't be after I cancelled all the DDs today..). I wonder if they're calling from the future!!
    Last edited by DNW; 04-04-2011 at 5:58 PM.
    LBM Feb 11 - Joint Debts of around 80,000 And nothing significant to show for it

    Actual Debt at March 11: 79,269.65
    Debt as at July 11: 82,483.16 Thanks to fees & charges!
  • natlai
    I set up a bog standard online savings account that I transfer the amount of my car loan to on pay day and then move it back to main account 3 days before it is due. That way I know I've always got it.
    Debt of 15,000 plus 9000 for a car
  • Mrs Trouble
    Another strange thing has been happening.. we've been getting SMS texts to the home phone from Frederickson International - but we haven't actually defaulted on anything yet, in fact we're still up to date with minimum payments at this point in time (but won't be after I cancelled all the DDs today..). I wonder if they're calling from the future!!
    Originally posted by DNW
    How bizarre - I have had texts today as well and my CCCS letter went out on Friday - maybe they have a mole?
    • pudding06
    • By pudding06 8th Apr 11, 11:16 AM
    • 616 Posts
    • 514 Thanks
    pudding06
    I have had texts 2 days running form frederickson international, its really irritating as I havent defaulted on anything either. I did a search on here but nothing but this seems to come up, wonder what it is, sure I dont have any out standing payments.
    August 2009 grocery challenge 172.64/,,,,,

    no point in doing grocery challenges, have no money left over to eat :0/
  • DNW
    I found out what they were ringing me about - it wasn't actually me they were after, it was my ex DH's wife!! I posted about that in a new thread http://forums.moneysavingexpert.com/showthread.php?t=3160618
    LBM Feb 11 - Joint Debts of around 80,000 And nothing significant to show for it

    Actual Debt at March 11: 79,269.65
    Debt as at July 11: 82,483.16 Thanks to fees & charges!
    • Chrisblue1962
    • By Chrisblue1962 8th Apr 11, 12:26 PM
    • 1,147 Posts
    • 1,831 Thanks
    Chrisblue1962
    Love this site, love this Forum
    One of the reasons I love this site and forum is that as a fellow DFW'er I learning a very hard lesson about money and credit.

    The good thing is that this site is helping thousands of others to empower themselves and get free of the slavery that is misguidedly called "credit".

    Good Luck DNW
    DFW'er - Lightbulb moment : 31st July 2009 - 18,499
    26th December 2017 -
    14,554.00 - 21.3% paid off.
    Demolishing my House of Debt.. one brick at a time!!
    Thinking of spending???..YNAB says "NO!!!!"


    • Chrisblue1962
    • By Chrisblue1962 8th Apr 11, 12:33 PM
    • 1,147 Posts
    • 1,831 Thanks
    Chrisblue1962
    One of the reasons I love this site and forum is that as a fellow DFW'er I learning a very hard lesson about money and credit.

    The good thing is that this site is helping thousands of others to empower themselves and get free of the slavery that is misguidedly called "credit".

    I really love the bit from DNW which says "...start living the life we should have had if only we weren't giving so much of our cash away each month."

    By being enslaved to credit WE are giving away the money WE have worked hard for but THEY are getting the benefit of !!

    I'm also going to set up an online savings account so that I can "ringfence" my CCCS payment and ensure that it's paid without fail. Also now have credit union account for car tax, car servicing and alike.

    Good Luck DNW you have lifted my spirits immensely
    DFW'er - Lightbulb moment : 31st July 2009 - 18,499
    26th December 2017 -
    14,554.00 - 21.3% paid off.
    Demolishing my House of Debt.. one brick at a time!!
    Thinking of spending???..YNAB says "NO!!!!"


  • DNW
    Good Luck DNW you have lifted my spirits immensely
    Originally posted by Chrisblue1962

    Aww shucks, thanks It's just so great being here where there are people at so many different stages of their journey (why do I think of X Factor every time I say that!! ) and the support for complete strangers is just amazing.

    Good luck with your x factor journey too
    LBM Feb 11 - Joint Debts of around 80,000 And nothing significant to show for it

    Actual Debt at March 11: 79,269.65
    Debt as at July 11: 82,483.16 Thanks to fees & charges!
    • Chrisblue1962
    • By Chrisblue1962 8th Apr 11, 11:12 PM
    • 1,147 Posts
    • 1,831 Thanks
    Chrisblue1962
    Postcript...
    Not meaning to hijack thread but...

    I set up a second Co-op Bank SmartSaver account this afternoon - apparently you can have as many as you like according to the nice Co-op Bank lady I spoke to - this means I can "ringfence" my CCCS payment when I get paid (15th) and transfer it back into my Cashminder basic account the day before the DD operates (1st following month)

    Thanks again DNW
    DFW'er - Lightbulb moment : 31st July 2009 - 18,499
    26th December 2017 -
    14,554.00 - 21.3% paid off.
    Demolishing my House of Debt.. one brick at a time!!
    Thinking of spending???..YNAB says "NO!!!!"


    • fozmcfc
    • By fozmcfc 9th Apr 11, 10:19 AM
    • 3,021 Posts
    • 2,194 Thanks
    fozmcfc
    I too wished I had had my LBM years ago and not when I was 38.

    Due to being a bad gambling addict from the age of 18, I dread to think how much I have chucked away. Had many loans/credit cards but the only good thing I can say is that I have always managed to just about stay on top of my debts, but must still have paid 10k + in interest easily.

    Luckily I have always had a good/well paid job and have never had any massive outgoings. Now the bad gambling days are behind me, I have managed to finally start to turn around my life.

    Next year I will hopefully get my first ever place of my own (rent probably) and that's at 41 years of age.

    Finally, it is possible, to used some form of credit to your advantage, such as Credit Cards on 0% interest and also I was lucky enough to transfer my original CC debt to a 0% deal as well.
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