These 95 people are now debt free. Are you?

by StepChange Debt Charity on 01 November 2011  |  9 comments
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95 of our debt management plan clients become debt free today.

On the first day of every month, another 100 or so CCCS clients make their last repayment and become free from unsecured debt. It can be a rocky road to get there, from the initial stress of problem debt, the nervousness around contacting us, and then the long journey of paying off debts and budgeting, year after year.

November is a typical month for completers – the 95 clients who become debt free today isn’t much higher or lower than average. But for each individual client the story isn’t ‘typical’. They’ve done something that’s far from the norm, and successfully paid back debts totalling £1.88 million (we had 418,000 people contact us last year – think how much total debt that equates to).

Of the 95, three of them had initial debts of over £90,000 each; one was paying back over £1,750 a month. It’s not just those on the poverty line that come to us asking for help.

They’re debt free, are you?

Earlier this year we found that 6.2 million UK citizens are financial vulnerable. This includes 3.2 million people who are already either three months behind with their debt repayments, or are subject to some form of debt action. The figures are startling; over 5% of the UK population have a debt problem.

Further to this, the Department of Business, Innovation and Skills found last year that 58% of UK households have unsecured debt (unsecured debt includes credit cards, loans and store cards).

While this figure is a bit disingenuous – it includes households that manage a well-budgeted lifestyle on credit just as much as those with thousands of pounds of debt – it also shows our reliance on this type of credit to fund our lifestyles, even in these straightened times.

That figure of 58% means that, all things considered, you’re probably in some kind of debt. It’s more than likely that you owe a financial institution some money.

You could be part of the 42% who don’t owe any money – if so congratulations. You and 95 ex-CCCS clients have something in common. If you’re not, and you’ve got a rolling monthly debt then you need to do something about it now.

How to pay it off

Let’s take a leaf out of the book of those 95 clients and see how they did it. Firstly they budgeted relentlessly (because their debt solution meant that they had to), and then, by and large, they stuck to it.

In interviews we conducted last month with these people we found budgeting can be incredibly difficult. As one couple told us;

“The chronic discomfort is day-to-day living; it’s been quite frugal. We haven't had a proper holiday since the DMP started and treats have to be limited. But comfort comes slowly as you stick to the plan. You get some pride back.”

They forced themselves to shun new credit, offers of “0% interest free”, and adverts for consolidation loans. As another client says;

“I do not have an overdraft and will never have a credit card again. I prefer to use cash as it is far easier to track spending and makes you realise exactly how much you are spending when you see it disappearing from your purse!  If I want something expensive, I save for it.”

And they learnt from it.

“Small debts can grow to become an anchor, stopping you doing things you want. Don't accept debt as an inevitable part of life.”

These people have been through the mill, and it would be wise to follow their lead. There but for the Grace of God go us…

Debtday

So let’s celebrate those 95 people (as we’re doing today with another debtday social media event). They’ve done what so many of us fail to do effectively, and have paid back their credit cards, loans and store cards. We could learn a lot from their experiences.

If you want to join the select group who have successfully paid off their debts, use CCCS Debt Remedy and find a solution that’ll get you debt free sooner rather than later.