Mum forgives £ 10,000 in debt and buys her first home using £ 40,000 rebate program



Emma is now the proud owner of her communal property after quitting smoking four years ago, helping her to write off a £ 10,000 debt and bring it back to its purest form

Emma admitted quitting smoking had helped her pay off debts

A mother of two explained how quitting smoking helped her pay off £ 10,000 in debt and buy her town hall.

Emma, ​​42, and her partner would easily spend £ 20 each, or £ 40 between them, on cigarettes a day, or £ 280 a week.

But quitting smoking in 2017 meant the couple could spend the money paying off debt to help them achieve their dream of owning their home.

Emma, ​​who lives in Leicester with her partner and two sons, was in debt of around £ 10,000 with money owed on payday loans, a rental car and her electricity supplier.

It took about four years for the couple to completely free themselves from their debts.

Emma broke her debts in about four years


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Emma, ​​who works as a cleaner for Leicester Council, said: “My credit rating was so low and that’s when I realized I had to do something.

“I knew I had debts to pay, so I worked hard for four years to pay it off and made sure I didn’t miss any payments.

“The biggest sacrifice was quitting smoking, my partner and I were daily smokers and easily spent between £ 250-280 a week on cigarettes.

“We looked at how much it was costing us and realized how much better we would be if we spent that money on paying down our debt instead. “

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She added, “If I was still smoking, I would still be in the same situation. I can’t even stand the smell of it anymore.

Emma said the money she saved by not smoking allowed her to pay at least £ 100 more for her debts, on top of the minimum payments she was already making.

Once she got rid of her debts in early 2021, the mother-of-two then began to examine the process of buying her communal house in which she had lived for seven years.

Emma used Right to Buy to buy her property. This is a program that helps council tenants buy their homes at a reduced price.

Tenants must live in a town hall for three to five years to get a 35% discount.

If they have lived there for more than 5 years, they will be entitled to a supplement of 1% per year they have lived there.

Emma initially struggled to find a mortgage due to her credit history, but was eventually accepted by the specialist lender Together.

She said: “I was out of debt at the start of this year – and now I am, I would never take another loan again. You learn your lesson.

“We applied for the right to purchase in August this year and got around £ 40,000 off the price of our house.

“You then go to a lender and take out a mortgage as usual. We didn’t have to post a bond, just legal fees which amounted to around £ 2,000.

“We have lived here for seven years, we have already worked there a lot. The driveway has been made and we are cooking now.

Scott Clay, Head of Distribution Development at Together, said: “Debt can be a thorny issue.

“As Emma did, identifying the most important expenses and thinking about solutions to avoid overspending is the best way to solve these problems.

“Specialty lenders have the ability to look beyond the credit history – we’re more interested in the future and how we can help unlock real estate financing for those who need it.”

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