Massive Win for me today

So since I’ve been on Monzo I have thrown myself into this community and it’s now a part of my daily routine to check this site at lunch. On the basis that this is such a close community, I want to share some financial news that has made me exceptionally happy!!

I got a big win today on the financial front. At the age of 32, I have not been out of my overdraft since starting at uni in 2004/05. The worst it got was when I was £1,500 in and I know it’s not much, but for 5 years after being out of Uni I was working in minimum pay jobs and struggling to support myself never mind pay off debts.

Then I got married, only then did I get a decent paid job, then had another child, then got a house…and slowly overtime I chipped away at that overdraft. Sometimes I shifted some if it, other times I managed to pay bits off.

But today, I FINALLY PAID IT OFF!!!

14 years of seeing negative numbers after all my expenditure coming out, 14 years of frustration, 14 years of feeling that I felt I couldn’t reward myself yet and then giving up because of how depressing it was seeing that red number and repeating the vicious cycle.

It feels great!! Granted the last of it was shifted as part of a debt consolidation process, but I’ve now got until 2021 to pay it (and other debts) off interest free.

I know that this isn’t exactly Monzo related, but the tools provided by Monzo has helped me push it over the line!!

Thanks for reading! Today is a great day!!!

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Congratulations :boom:

So happy for you :smiley:

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This is exactly the kind of thing Monzo aspires to help people with, so very relevant IMO.

Congratulations on your milestone.

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That’s awesome, nice work! :+1:t2: Definitely know the feeling with consistent negative numbers. Monzo definitely makes finances MUCH easier, faster and transparent to help escape and prevent these situations now.
Enjoy seeing the money increase and knowing you own it!! :tada:

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:ok_hand:well done!

What’s the next goal then? £1500 in savings?

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Awesome stuff mate - well done!

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Congrats Richard. From here on the money works for you! :sunglasses:

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Wow, the responses have been overwhelming!! Thank-you guys!! :heart::heart:

Fair comment. It is something that I have noticed but I felt a bit foolish posting my own victory on here, kind of felt like I was blowing my own trumpet but the response has vindicated that for me.

Next big goal is to pay off the credit card that now has all the consolidated debt on it. It’s interest free for 3 years so it can be done.

But in the meanwhile, I want to start saving small amounts of money for short term events, ie £40 a month to go towards both my girls birthdays, £20 for my wife’s, £10 for Xmas etc. This is where locked pots would be great!!

After the credit card is paid off, long term pension and savings investments.

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Might be worth trying Chip for a month or so, seems like you’d be a prime candidate!

I’ve seen some referrals knocking around on here so you could earn a little interest in it too!

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WOW, Absolutely amazing news! Great read! :partying_face: :partying_face: :partying_face:

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That is fantastic news! Congratulations :smiley:

I know so many people who are stuck in their overdrafts. I slowly got mine down and made sure I decreased it as I went to make sure I didn’t have the option to go back into it again. So many people still view it as their own money and are scared to decrease it.

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Maybe, I like the concept but I want to utilize the pots in Monzo for the time being.

If I get ahead of schedule I will be looking at opening a savings account like Marcus. But right now I’m just going to enjoy this for the moment. :smiley:

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Overdrafts are a trick really…especially interest free ones which is how I got into the mess in the first place.

Martin Lewis advised to treat them like any other debt ie credit or loan so I tried to do so. But it was always a low priority compared to credit cards and loans.

I don’t even want to have a £50 fall back. I want to have enough money that I can rely on myself and not the bank!

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How are you planning to do manage this? You may have worked this out already, but in my opinion the best way to tackle this is to ignore the voice in your head that is desperate to pay it all off asap and throw big chunks of money at it. When I had a big card debt I moved it to an interest free credit card, worked out how much a month I would need to pay to pay it off by the end of the 0% term and only paid that. No more, no less. This allowed me to save at the same time and prevent unexpected chunks of expense that I hadn’t saved up for pushing me back to the credit card.

It is so great to hear that someone else is taking control of their finances. I had years of hell with mine and feel so much more in control now!

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First of all, congratulations, well done :tada:

Would you mind though if I ask you what’s been your approach to get this done? What features do you feel have helped you the most? (pots, budgets, left to spend balance…?). I’d love to understand better your strategy in case more people can benefit from it. Many thanks and congrats again!

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You’ve earned it! (Literally!).

I really want to utilise Monzos pots too. I just can’t look passed the fact that any interest is better than none, so I’m using Starling for their pots atm 0.5 is better then 0…just…

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Ditto! It is a shame that you couldn’t have sub-pots of the savings pot with interest where you can have your different savings goals and earn interest across the board

I said that a couple of days ago. Sub pots really is the answer!

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Sorry, I hadn’t seen. Great minds and all that!

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Congrats @LifeofRiley super job.

A couple of tips, if you’ll allow me.

Firstly, consolidation often ends up doubling the debt of folk who aren’t wary of it. It’s very difficult to borrow your way out of debt, but getting it on a 0% is the best start. Although I’d advocate a low overdraft limit, so you’re not charged by companies if you make a small error and inadvertently bounce a DD (Monzo won’t charge, but companies will, and possibly record something on your credit file) choose a manageable £50 or £100 overdraft limit and reduce your overdraft facility to this. Then you won’t get into a situation where you get back down to your full overdraft usage AS WELL AS your consolidation.

If you’re paying minimum payments on the CC, consider adding £1 – your credit file will be looked at less favourably if you just seem to be paying minimum amounts every month. Adding just £1 will make sure that particular flag isn’t applied every month to your file. Remember it’s best to divide up the balance into monthly amounts that will pay the balance off by the end of the deal.

Also, on the CC, don’t spend on the same card as your deal. You’ll find interest gets complicated if you’re not paying back your full balance every month. If you need a CC, for the Section 75 benefit for example, think about a different one with a small limit, and cut up the 0% card so you’re not tempted to use it again.

But well done on getting your debt under control. For every pound you stay in the black it’s money in your pocket, because it’s the opposite of my mantra of “if you borrow money today you’ll have less to spend tomorrow”.

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