Author Topic: My story  (Read 2666 times)

Magikat

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  • Posts: 1
My story
« on: Jun 18, 2008, 10:39:47 PM »
Hi there,

I've been reading bits and pieces on the net in the last few days regarding debt. A lot of posts are from people who are currently in serious debt and are struggling to pay. I thought it might be helpful to describe my journey through debt problems and how I turned it around.

To cut a long story short, in the space of 2 years during ill-health I had ran up a total debt of £13000.

When I actually saw this figure written, I put my head in my hands and cried...and I was a twenty-five year old man. The good thing was that I had acknowledged that I had a problem and that I needed to do sometihng about it.

I was shocked out of apathy and I decided to try and take on work. The job at the time only paid £12,000 per year. However, I was living with my parents at the time, which made my life that bit easier.

I came up with a plan to pay off my debt. I got out my laptop and put every single debt I had into a spreadsheet. I worked out which was the most expensive (i.e. the one that cost the most in interest).

I then did what I shoulds have done in the 2 years previous. I broke down every expected expenditure for a months pay. I split the items into sections. At the top I plotted out the things which had to be paid. These included all of my (minimum) credit repayments. Yes - I made these a priority. This section also included things like prescription charges which I had to pay.

Next I plotted out the things which I felt were important, but not essential. These included (expensive) clothing, computing equipment (since this is my profession) etc.

Finally, I wrote down what I considered to be luxury items. These included a bottle of wine ore two, a (cheap) night at the pub, or a cinema outing.

With the aid of the software, I juggled the cost of each item so that I had a significant amount of money left to pay extra on top of my debt payments. After much sacrifice, I managed to find £350 pcm to pay. Now, for me this is a lot of money, even now.

I stuck to my guns. I paid off the most expensive debts first and after about a year, I sighed as each debt was paid off one by one. At the end of the first year, I had managed to get my debts down to about £6000, if my memory serves me correctly. Now this is the best bit - I decided to treat myself to a weeks holiday. I decided for that one month I would not pay any extra credit payments and used it for a week in Amsterdam. I booked and went cheaply on the ferry. And man! I had a great time.

When I came back, I immediately began repayments. After a pay increase I managed to up my payments to £500 pcm.

A year later my total debt now amounts to £1500. I have a new job that pays twice as much and I'm living the life of Riley - and not on credit :-)

There is one important on aspect that I decided to leave until the end as I feel it's the most important. And that is, what we focus on gets bigger! Ask a Buddhist monk if you don't believe me ;-)

If you focus on your debt, it will get BIGGER! You're focussing on the negative.

Instead, try and focus on the positive. In other words, think about how it would feel when you have halved your debt. Trust me, it works. I'm now focussing on being completely debt free...and boy does it feel good.

One things for certain...I'll never go down the debt oad again.

Thank you for reading and I hope my story helps YOU!

Magikat.

Mr Maximus

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  • Posts: 9
Re: My story
« Reply #1 on: Jul 26, 2008, 12:50:17 PM »
Hello Magikat

You make it sound so easy and to an extent it is. I worked out how much I owed (only when everything went pear shaped) and I didn't cry but I did feel very ashamed of what I had done. I am currently in the tune of £23k in debt and not enjoying it one bit. It was my own fault but hey ho.

I suppose I should look at increasing what I pay back to my creditors as the quicker I am debt free then the quicker I can move on to my next thing about owning a house. Obviously not at the moment as a) my credit check would not stack up and b) the market is not right at the moment.

The story does help as it gives others a goal to aim for.

Mr Maximus


debthelper

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  • Posts: 5
Re: My story
« Reply #2 on: Aug 26, 2008, 11:08:12 AM »
This is exactly the advice I give first also. If you can, you should always reduce your expenses. Making a spreadsheet is an absolute must.

Cut down on the sillly things that are completely uneccessary like dining out. It's expensive and not even that great most of the time. Change your diet, it's funny but the healthy food is much cheaper than unhealthy food. Your body will also be thankful. Ride a bike or walk if you can.

It's amazing how many things you can actually do if you put your mind to it. I've had to cut down a lot of things since I make half now of what I used to make. You'll be amazed how much fun you can have even spending less money. As the song goes, the best things in life are free.

Debt relief order