How did I get here?
So how did it all happen?
Well my big problem in past years was being far too frivolous with money, spending a couple of hundred quid a month more than the salary soon stacks up. Add into that an over-generous nature (some may disagree), a love of all things gadgety and a “talk is cheap” attitude to doing things and buying them too.
I ended up £31,000 in debt on various credit cards….erk
This was all quite challenging, to try to reign in control I was always on the move with credit cards. Always moving money out of one card when it’s zero percent deal had expired to another card’s zero deal. This had to be done strategically in order that I didn’t incur the wrath of the first month’s interest, unfortunately it did mean that usually there was a balance transfer cost of 2% or more, which on £10k moves well they soon added up. Despite my best efforts and literally dozens of cards (I think I ended up having 12 with balances – at one time – in the end having used dozens in the past) I sunk deeper and deeper, I don’t think I ever missed a payment though and my efforts were rewarded with big savings on interest, but bobbing on the sea of 0% credit was dangerous and hard job, in the end though despite the many many hours spent moving monies it was a fruitless exercise and I had to admit defeat.
At this point and I was a bit desperate and I got onto a few websites to ask for advice. Basically as with anyone who is in this situation I was looking for that magic bullet, declaring bankruptcy without losing my impeccable credit rating… or my flat, negotiating payback deals with cards etc…. Anyway there wasn’t much of a response but in the end I decided to do the right thing and settle my debts, hang the consequences and start afresh. This got a good response with many well-wishers saying it was refreshing to hear of someone doing this, so I knew it was the right thing for me as I’m a pretty upstanding, honest and deep down old-fashioned kind of guy.
So I needed to do something… so with a heavy heart I decided to sell my rather spiffing flat.
Now my flat had just underwent a major refurb’, my wonderful Dad and I (mainly my wonderful Dad though) had spent months doing-it-up. This refurb’ had upped my debt too and part of the £31k problem and in order to reset myself to square one I needed to sell the flat. Thing was that in order to meet my debts (note that I’d also re-mortgaged the flat too in order to cover other major debts) I had to get a really good price for it. Luckily I held out through the derisory offers and the near misses and eventually obtained the price I was looking for, but it was touch and go.
When my debts were settled and the flat had gone I had £600 in the bank.
Now for the second part of the plan, put everything into storage, swallow my pride and move back in with my folks. I know I make this sounds a terrible thing but really my parents are lovely and I get on exceptionally well with the pair of them. The stigma though is in other peoples’ minds and although I’m happy to live with them, there are a lot of people out there thinking “at his age” and “how sad is that” and “what should I have for tea”… I think the real toughie is for my folks, they have lived on their own for years and I know they think the world of me but it must be quite a pain having obnoxious old me dictating what to watch on TV (I am now however a Doc Martin fan now ) So a painful year for them, a bit of embarrassment for me, but in the end of it I am now out of debt, I’ve saved up a mortgage down payment (aided enormously too with the huge help of a very generous donation from my super Sister and her wonderful Hubby), I have terribly clean and ironed clothes, I’m very well fed and in a situation that is now much better than it once was and I have just bought a fantastic house at auction.