How on earth do you manage that?

>> If its a mortgage etc then fine
That probably sums it up - what do you consider ok debt?
My parents would have been horrified at the size of mortgages regularly taken now.

Suspect large debts are due to a number of factors but probably boil down to not being realistic about the future.
Credit cards are an easy way to borrow money but also very expensive. At low amounts the interest amounts are low - but once you stop paying capital they can mount up quickly. Reach the limit but can still pay the minimum amount so take out more cards. Then you struggle to pay so stop opening the letters - don't want to think about it so go out and spend money to take your mind off it.
Someone should come up with a term for the stages but not paying off credit cards each month (or at least stopping the amounts from growing) must be the start of a slippery slope.

I was approaching this when I first started work but fortunately had over-generous parents.

Of course there are other unpredictable catastrophes - divorce, illness, redundancy, accidents.
And what makes you think a mortgage/property shouldn't be counted as debt? It might be cheap but is usually a major monthly outgoing.

It's very easily done due to all sorts of circumstances. Many young people start their working life in debt as most students have no choice but to rely on student loans and overdrafts for basic living costs- I had £12k student loans plus £1k overdraft when I left uni (and I worked part time as well). I admit that I was frivolous with my money at times, though, especially with my wages from my part time job and blew them on things that I've little to show for now.

Be a shopaholic and collect 'stuff,' only pay the minimum on credit cards, run several cards up to the limit, get a consolidation loan, then run up the cards again, do all this three times within 7 years, not treat it as serious debt because I can afford the payments, and voila - £28k down the toilet! No emergency situations - just plain ole stupidity on my part.

I've set up a spreadsheet with everything crosslinked, expected interest, monthly budget, plans step-by-step etc., and I'm aiming to pay it all off in 3 years barring any unexpected emergencies. And believe me, I'll never get in this state again. I credit Martin's book and this site as the catalyst for my 'lightbulb moment.' Now I'm fervently evangelistic about this forum - everyone's been told about it and everyone's getting a copy of Martin's book for Christmas!

Jules

Holidays, Beer, Clothes.

Always believing I would get a really great job ONE DAY.

Not preparing for the worst, when illness struck.

Does it really matter how it is run up. The most important thing is that people have their lightbulb moment and then start to deal with it.

On Make me Rich yesterday (friday)there was a couple earning over £50k a year and they where still over spending by £140 a month and they only had a mortgage payments of £350 a month.

So it does not matter how much you earn you can still over spend.

But has been mentioned if you over spend every month by a couple of hundred it does not sound to bad. But when it happens year and after year then of course it builds up to silly sums. And for a lot of people it means then have nothing to show for it.

It is a long hard slog and Ms_London has proved that it can be done but it does take hard work.

I wish everyone here who is struggling with debt all the best and be proud of what you have achieved. £50 off your debt is £50 off your debt. You will get there in the end.

Yours


Calley