Finally debt free!

[BarclaycardBosh]

A few years ago I got into a major mess with money through my own stupidity and lack of income exacerbated by the pandemic. Long story short I ran up £17,000 on my credit card and was struggling to keep up with repayments. I never missed one, just was utterly skint every single month. Total head in the sand situation, and I didn’t tell anyone including my husband (he knew I had some debt but not to that extent - I have since confessed!).

Barclaycard were brilliant and put me on a 4 year Paydown Plan with a much lower interest rate and manageable repayments. I cried on the phone.

Today, 3 years later (so 1 year early) I have finally PAID IT OFF and am totally debt free apart from our mortgage for the first time in many many years.

I’m so happy this morning but can’t share with my real life people as I’m ashamed I got into such a pickle. But I just wanted to say to those out there with debt to speak to their creditors and make a sensible plan, they will be able to help you.

Celebratory cup of tea and some posh shortbread for me this morning!

Massive, MASSIVE congratulations. I know how this feels. The best bit is the astonishment when your income appears in your account and isn't immediately swallowed up by debt repayments. You feel so rich.

Like you I didn't tell many people about it but privately it is one of the things in life I am most proud of. I have never even been overdrawn since, except a couple of very minor accidents that lasted 24 hours due to payment delays.

I remember that feeling so well - fabulous moment, well done!

FWIW, 20 years on and I've never been out of control since.

Well done OP, massive congrats. Great that the lender helped with a sensible approach too. You will feel so much freer going forward!

Similar, except a "friend" did it in my name. Will be debt free in 18 months!

Well done OP! You must feel an amazing sense of relief.

Can I ask if it had any impact on your credit profile?

@Panicking23 Absolutely no impact on my credit file at all, in fact I’ve just checked and it’s rated “excellent”. When I made that call years ago it was one of my main concerns, but the lady reassured me as long as I stuck to my payment plan that no defaults would be marked.

@daffodilandtulip thats awful, is there no way you can recoup anything from your presumably ex-friend?

Yes, very ex friend. I did allow her some use originally, so there's no way of proving what was agreed and what wasn't. Nearly five years down now so no use re opening that can of worms.

Thank you thank you thank you to everyone who’s commented today, it’s really nice to have been able to tell people! While I feel proud to have cleared it, I feel so un-proud to have messed up in the first place so it kinda cancels it out.

I burned all my statements in the fire pit at the weekend. That felt gooood!

How daft is this?

I requested a lower limit (because who needs 17k!) but the system obviously hasn’t caught up with that yet. But can anyone explain why my credit score is higher if I’m in debt?! Backwards.

Because you’re not proving that you’re a good customer… you’re no benefit to them if you’re not using it.

I find this an odd one because as I’m reducing my debt I’m also asking for my limit to be reduced.

So I had £8k limit with £3700k debt, so within the 1%-50% range…. I asked the limit to be reduced to £4k and it’s negatively impacted my score.

That is equally annoying @HappyCamperTent. Seems 1-50% is the magic number, but I’d rather have a zero balance and a few points knocked of my credit score, I think!

If you want to improve your credit score then once the limit is reduced to £2k you could use it to put petrol in each month but have it set to pay off the balance each month. Don't under any circumstances let it default to minimum monthly payment. That way you don't pay any interest but prove you can make regular payments.
However unless you need to renegotiate your mortgage or take out new loans in the near future, a good credit score is absolutely pointless.

Good point @Fizzadora I should probably stop looking at it!

@overthinkersanonnymus
@Moogoopixie
@HerbalTeal
@daffodilandtulip
@HappyCamperTent

I was just re-reading this thread and wondered how you’re all getting on?

Just under a year to go and it feels good!

Ahhh that’s brilliant, nearly there, it’ll fly by. It really encouraged me reading similar stories on here, so come back and let us know when you’re freeeee!

Well done- Great news

@BarclaycardBosh I've got £2000 left to go and I think I'll have this cleared by august. It feels good do see that balance reducing, im addicted to it!

Fantastic, keep going, you’re so near the end! 🏆

Well done you 👏 that’s amazing work in 3 years and it must feel so good!
on another note, I would send Barclays back their new shiny card with a NO THANK-YOU letter and stick to using only the Debit Card. I did just that with mine recently after listening to Dave Ramsey literally hundreds of times saying “you can’t afford it!” And he is 💯- if you haven’t got the cash to pay for it then you can’t afford it! I’m working through his Baby Steps… with gazelle intensity…

That's brilliant news, well done👏

@Debtcrusher I’ve had the shiny new card a few months now and have used it for a holiday deposit, concert and theatre tickets, and some garden furniture. All were paid off as soon as the bill arrived so I’ve not incurred any interest.

We’ve had half our windows replaced, paid for this years summer holiday, and spent a chunk on the garden. We’ve also topped up the kids’ savings. Next stop: mortgage overpayments.

It still amazes me that I’ve got money to play with each payday, and the improvements we've made around the house make me happy and grateful every day!

Well done BarclayCard - it sounds like you have really nailed it this time and enjoying the extra few pounds on nice treats - well deserved!

Congratulations.

You can set up your credit card direct debit so it automatically collects the full amount. It means you get the additional protection (I always use a CC online) but don't pay any interest or run the risk of it starting to build by 50 quid here and there until it's a grand.

It can be handy at expensive times like Christmas as the cut of date for the bill spreads payments over two months but you still clear in full (just from two pay cheques).