Loraine Bertolini, 62, a teacher from Falkirk, Scotland, found herself £3,500 in debt but managed to clear it and pay off her mortgage entirely with the help of the envelope method. She says she was left with "nothing" when she walked away from her marriage 15 years ago.
From Teaching to Hospitality and Back
Loraine had purchased her three-bedroom ex-council house for £38,000 after swapping her teaching career for a better-paid role as a director of operations in hospitality at a football club. However, when her contract ended, she was out of work and survived on £50-a-week Universal Credit for four months before taking a call centre job that paid £800 a month.
She then devised a plan: dividing her salary into weekly cash envelopes and relying solely on cash to keep outgoings down. She also bought "yellow sticker" reduced food items to cut grocery bills. Eventually, she returned to teaching, but had to renegotiate her mortgage due to an estimated £3,500 in arrears and loan repayments. By remaining frugal, she cleared all debts and paid off her mortgage in full in 2023.
Struggling After Separation
Loraine left her marriage of 30 years with nothing, initially renting the marital home for £450 a month after separating from her husband. They divorced in 2016. She secured a new job paying one and a half times her teaching salary and bought the property she was renting with a £2,000 deposit in October 2008. But when that role ended 18 months later, she fell eight months behind on mortgage payments.
"I was constantly in contact with mortgage companies to say 'I don't have the money this month,'" she said. "They were very good and said 'don't pay that, pay what you can pay as long as it's something.' It was really embarrassing."
Cutting Costs to the Bone
Loraine cut her phone bill to pay-as-you-go, cancelled her Sky package and health insurance, and sold items like one of her two TVs to cover bills. She bought second-hand clothes, walked everywhere except for work, and bought and sold goods at car boot sales. She also took on occasional catering work for children's parties.
Her £33,000 teaching salary allowed her to gradually clear the £1,500 mortgage arrears and £2,000 loan. She said: "I didn't really go out anywhere, if I wanted to see people I would invite them over to the house. I had no holidays. Any money I was making extra I was sending to my daughter in Australia as she was a student."
She learned the times when shops reduced items: "I'd go into Tesco's at certain times, then visit M&S at 5pm and Iceland at 8am."
Mortgage-Free After 15 Years
In 2023, Loraine cleared her property debt and now lives mortgage-free. She has saved £15,000 and renovated her kitchen and bathroom. Her credit rating is excellent. Reflecting on her journey, she said: "I wasn't meant to divorce. People worry about that, worry what others think but they shouldn't. You only get one life, one shot at this. After 30 years I did it. I'm a stronger person than I ever was and more confident than I ever was."
