Money Mondays #2

I spent the best part of two decades in debt I couldn’t manage and didn’t need.

Last week, I said how it all started and today I wanted to cover how it all came to a head and taught me the financial discipline I have today.

The credit card debt at 18 was just the start and over the next 10-15 years I spent a lot, paid off a little – usually the minimum payment only.

Round and round in circles I went.

I used credit cards for everything; nights out, holidays, even a £5k car once!

Never interest-free either, I was an idiot.

Finally, in 2017, I reached breaking point with my finances and realised for the first time that I couldn’t afford my life anymore.

I contacted StepChange for help, and they were honestly brilliant. I can’t thank them enough for the service they offer.

When I started my IVA I had unsecured debt of £42,500 and because that was deemed a high amount, I entered into a 5.5 year process that, if I’m honest, felt like a million miles away.

Through the help that StepChange provided I was forced to budget for every penny and this is a habit I keep today, despite earning 3 times more than I did back then and having considerably less debt!

They wanted a breakdown of just about everything you could think of, and even some things I couldn’t – it was truely eye-opening and went a long way to helping me realise the difference between wants and needs.

Throughout that 5.5 year period I had to provide an annual account of my income and expenditure. Any payrises would mean paying back more money each month, but on the other hand, they were very flexible in terms of increasing spending on things I was under the permitted allowance for.

The whole process taught me discipline. I created a spreadsheet to manage my money, and although it’s evolved over the years, I still use it to this day – you can buy a copy of it here if you wish.

At the end of my IVA in June 2023, a huge weight lifted from my shoulders. I could finally get on with my life, free from the annual reviews, able to get new manageable debt if I chose.

In September 2024 I bought my first house. Almost 7 years to the day I that I made that first call to StepChange, I was a homeowner.

Yes, the mortgage meant the most debt I’d ever been in but this time it’s different. Now I’m in control.

Until next week,

Mark

P.S. If you want to buy my budget spreadsheet I have a “basic” option and a more advanced one with net worth tracking and a dashboard. Links below:

Budget Only – Buy Now​

Budget + Dashboard – Buy Now