“So, to put my story into context, I need to tell you;

This is not a heroic budgeting, frugal living type blog post, it’s just exactly as the title reads. This is the exact way I achieved this. Legally, quickly and happily.

Alright, I’ll start from the beginning. How I accumulated all the debt in the first place.

It started when I was 18. I got a letter from my bank about a low limit credit card, sounded harmless enough. I had this plan that I would just instantly transfer all the money over that I used, and it started out great.

After proving my responsibility to myself, I decided to take out a personal loan for a procedure that I wanted done. It was a 10k loan, good repayments, and I thought I could manage it, as I was hardly using the credit card at all. So I went ahead with the loan. Then I got another letter for a platinum credit card with an AMEX, so again I said yes.

After using the Amex for ‘points’ for various purchases over a few years, I was left with 20k of debt. Due to illness, I had to stop working, so I took out another credit card, and ended up maxing that out too. I was up to about 30k in debt. When I returned to work, I was chipping away at the repayments, that’s when my car broke down. I had a friend who was a cars salesperson who said he could get me a great deal! A $30,000 loan later, there I was with a $60,000 debt – not sure where to even begin because I had completely lost track of where the debt was coming from! Just when I thought things couldn’t get worse, I received an ATO debt of $10,000 from back when I was a sole trader!

As a result, I found myself with crippling anxiety and depression and was forced to leave my job. I would literally get calls every single hour of the day, demand notices, you name it. In the time that I had accumulated the debt, interest piled up, late fees piled up, and I found myself in $88,000k of debt. I was 22. I thought my life was over, because it would take about 70 years to pay off (at the minimum repayments).

I couldn’t afford Rent, food, petrol. Nothing.

I was trying to get on with my life, and I knew I needed to do something drastic.

I took to google to find out my options. Bankruptcy Solutions Australia came up, I clicked, inquired and within 15 minutes my consultant ‘Tanika’ had called me and explained to me in full detail the pro’s and con’s of bankruptcy and had taken me through a full consult to determine if bankruptcy was a right fit for me.

It took about 2 weeks to get everything organised. Then the letter from the government came saying I was bankrupt. I have to say opening that letter was extremely daunting. Until I opened my bank account… instead of a negative of 10’s of thousand’s there was just my little savings of $10 (I told you I was broke). Can you imagine opening your bank account of -$88,000+ every single day and then one day having a positive figure appear over night? Well to put it into perspective, I cried for 20 minutes.

The whole experience up to that point had motivated me to be so much better with my money. I decided to take an online course on how to budget. I put all of my new budgeting skills into action, and to this day I have not stressed about rego, insurance and any other sneaky bills that pops up.

I really didn’t even notice that I was bankrupt most of the time. I couldn’t take out a car loan until the three years was up, but I didn’t want to after feeling freedom from debt. So, I saved and bought a really cheap car which got me by until I was on my feet again.

At the end of the first year of my bankruptcy, I had saved 10k. This was surprisingly easy to do without having every hard earned cent going back to debts!

Now, three years on, My Husband and I have applied for a home loan and I can’t believe it – WE GOT IT! I emailed Tanika the second we were approved to say a massive Thank You because without Bankruptcy Solutions Australia, this would have never of happened.

Tanika asked me to share this story in the hopes that it might help someone else. It was the best decision I could have ever made. Bankruptcy as a word is much scarier than the actual process. Don’t let debt ruin your life.

*Last name of client has not been added to protect her privacy

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