Getting a grip of debts the painful way!

I’ve been talking to a few people recently about debt reduction. I feel some people have been badly advised and may take the route of debt consolidation or even debt management,where they hand their debts over to a management company and pay a fee each month, not realising that the only thing that makes debts go away is bankruptcy. Bankruptcy is dreadful for your immediate future and means you sometimes can’t hire a car, rent a house and certainly not move house or get another mortgage. By far the best route is biting the bullet, accepting a very much reduced standard of living and paying off debts.

Once you get used to living on less money and living differently; soon enough and after a while, it just doesn’t matter! I can so easily tell who is and who isn’t ‘on their arse’ by their access to ready cash. So many people that I know have nothing left at the end of the month as they are either living on credit or they have maxxed out! Below is my debt repayment plan. You can only see this properly if you double click it to enlarge it……….I’m not ashamed of being in debt and not ashamed of how I have to pay this off and certainly not ashamed to share the payment plan with anyone who cares to see it.

We decided to pay off everything, which means in the first instance that you stop spending anything at all. Complete cold turkey! If you are in the position that I was in, you can’t afford to drink, to smoke, to go to the pub, to have a mini-break, to eat out, to go to the pictures or theatre………………………….YOU CAN’T AFFORD IT! You can’t afford to use your credit cards EVER! STOP IT!

Martin Lewis uses the analogy of attacking one debt at a time, which we did. We then repaired our credit rating in six months and were able to start moving debts into 0% cards and now we over pay them and we’re attacking those debts.

If you are reading this and you are cutting back because you are in debt, please contact me first before you even think of either consolidation, re-financing, re-mortgaging and especially before going anywhere near debt management. There is another way and YES it’s going to be painful and it will take a few years but you will walk away debt free, with a credit rating in tact, with your own roof over your head and you will have a better future. Who’s coming with me???

For those who have asked – to find the debt snow ball calculator simply google “debt snow ball calculator” – you can also discover how to pay debts off quickly by googling Dave Ramsay or Suze Orman, also watch the ‘good debt, bad debt’ video by Martin Lewis from Money Saving Expert on You Tube – search “Martin Lewis” in You Tube and look for his live stage show/lecture – it’s fascinating and will tell you all about paying off debts. Here’s Dave Ramsay and his video on debt snowballing


13 thoughts on “Getting a grip of debts the painful way!

  1. FQ you really are one level headed and clear minded woman, and I am full of admiration for you!

    Not only have you got your goal to reach for and are tackling it head on, at full force, but you are generous to the point of helping others reach theirs too!

    My debt exists of a tiny mortgage and a small loan for the car…things I would consider to be acceptable in this day and age. Maybe not in your eyes but at least by reading your blog I refuse to let myself slide into the pit of spending and wanting!

    Thank you so much…and I love seeing what your upto next. Never a dull moment. xxx


  2. good post, four years ago we had to sell the house (on CAB advice) as we had re-mortgaged twice(our bad decision, consolidation car loan/credit cards etc) the estate agent dropped the price of the house so that the £9,000 equity was lost and we sold the house still owing debts, since then we have gone to the CAB and thier way is pro-rota paying debts depending on what you have left after everyday household bills but they prefer it if you go for bankruptcy or debt relief order. I don't want that and prefer to pay each debt off. Last year when we had some extra money we contacted the companies and asked for settlement figures, we paid a £2,500 TSB loan off for just over £500 ! and we paid some other debts off, all settlement figures. For the last four years we have also managed without credit. We too don't smoke, don't drink, don't go out, buy second-hand furniture and curtains/clothes. We last had a holiday two years ago with those tokens from the newspaper offer from £9 week using the food/petrol money that we would have used if we had stayed at home, the club entertainment is free.

    So we recently contacted the CAB again as they had closed our case as we didn't follow thier advice because we paid the debts off last year!
    yes being in debt is hard at times but when you get the statement which says £0.00 it's all worth it!

    Josie x


  3. Thank you for sharing this with us – I have just been onto the website that you are using and done a quick calculation and if we eat beans for the next 2 years we would be debt free 2 years in october. If we are a little more forgiving of ourselves it would be 2014 – either way it's a marvellous incentive to keep us on the right track.


  4. Bravo! So many people blame everyone but themselves for their debt and are too cowardly to bite the bullet like you have. If you can't afford it don't buy it and if you do then don't expect that you will be able to declare yourself bankrupt and wipe the slate clean. Fq is right the only way to deal with debt is to suffer and pay it. What a brilliant feeling you'll have Fq when you are debt free and you will feel rightly proud you did it the hard way and wihout ducking out.


  5. Great post but clearly you're a person with principles and morals.

    The vast majority of debt is run up by people lacking in both. If everyone followed your example this country would be a better place.


  6. Steady on Gideon, I ran up debt by replacing a leaking roof, replacing rotten floors, buying a car so I could work, most people run up debts just trying to live to the standards set by 'society' of home owning and possession owning. Let's not be so quick to judge anyone in debt, it can and does happen to anyone


  7. I'm not judging anyone – the point I was making was that the people who run up debt from a leaking roof are 'generally' not the same people who run up a credit card debt because they're irresponsible.

    You are free to be protective of debtors everywhere – some of them however deserve no sympathy.

    I did not comment on your site to argue with you – I think what you have done/are doing is admirable.


  8. I think what you're doing is nothing short of inspirational. I love reading your posts, and I'm looking at ways to save money and pay off some debts. I'm a single parent so there's only my income, and I worry about not having any savings to fall back on. Thanks for sharing these tips.


  9. Right I have done ours we will be debt free in 2013. We do not have the same disposable income you have and it will be a bigger struggle for us, but if you read my blog you will see that by volunteering to help in a garden we get to choose some produce to bring home which will augment what we grow ourselves.

    We were almost debt free until my OH expressed a wish to spend his last days in the country he was born in. I could not deny him that.


  10. In defence of the debt management companies, there are some out there who are decent and it won't involve bankruptcy. m'Lady wsa with one when I met her and the biggest problem she had was not knowing what to do to prevent further debt and the charges cascade that many people suffer. The agency she dealt with merely acted as an intermediary and did the talking to the companies she owed. In some cases they were able to get outstanding balances so no more interest would accrue. She paid back everything outstanding and is now slowlt building up her credit rating at a time when we are trying to move away from buying!

    My debts are entirely the result of a divorce and were largely inherited on store cards I didn't know we stil lahd that were in my name, and then just trying to live when I had no real home and no job and only a credit card to sustain me. I bought a car which was intended to help me see me daughter who at the time was 120 miles away. It broke down irrepairably about 2 months later having cost me £2000!

    We are still tackling my debt which was running in the order of £20k all told.

    Those of us in debt come to debt in our own ways, the differntiator to me is how we choose to get out of it. I know people who have gone for bankruptcy, including family, and it is a soft option, yes it impacts on your next few years but not significantly unless you had a mortgage. People who create a mess and choose an easy out don't have my respect. Those who get into trouble by whatever reason but choose to deal with it and tackle the problem do.

    You are certainly the latter Froogs, I wish there were a lot more like you! Your honesty and attitude is refreshing.


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