How we started climbing out of the mess
5 February 2008 Jeff Gill
If you are new to our ongoing money story, you can catch the first two episodes here. Enjoy!
In April 2007 our pastor (and successful business owner) Steve Houghton did a finance workshop for our church (short Sunday morning version here.) It was very good. In three hours Steve clearly laid out the exact steps that I needed to take to get things back on track.
Being the highly motivated and disciplined person I am, I almost completed the first step – tracking our finances for a month to find out exactly how much we were spending and on what.
Then I didn’t do anything until August and HMRC started getting tetchy. When they demanded that I give them a definite date (preferably yesterday) when I would pay the entire amount that I owed them or they would come and take away my car and my shiny iMacs, I found renewed motivation.
The only workable answer was a loan. I learned that from Steve.
In September about the cheapest you could buy money for was 6.1% – not bad. I couldn’t get that rate. I’m still technically an American, so I’m not on the electoral register. Also, my credit history, though good, is rather short. I didn’t do too bad though. I borrowed £8,000 at just over 9%, repaid over five years.
I paid back HMRC. I paid back the rest of the Tax Credit overpayment. And I reduced my monthly repayments on stuff to about £168, over £100 less per month than before. Hooray!
The most important thing that taking a five year loan did for was to help me finally discard the idea that there is a quick-fix to my money problems. I am now committed to a long-term, no-shortcuts journey to financial health and happiness.
That’s the backstory. From now on you are on the journey with me in nearly real time.
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tags: debt,
money
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