Are YOU responsible for your spending & debt?

Deep_In_Debt

I received no education on money, I wish I had. It was a long time ago that I went to school. However, I should know better. My parents were brought up during the war with very little and learnt to look after their money and everything they had. They are now very wealthy due to being good with money and never had a debt in their lives so could afford to send us kids to private schools. We never went without as kids but my parents did. I guess I grew up in a different era where money was easy to get hold of...I'm not making excuses but I wish I had learnt from my parents example.

PROLIANT

Deep_In_Debt wrote: »

I received no education on money, I wish I had. It was a long time ago that I went to school. However, I should know better. My parents were brought up during the war with very little and learnt to look after their money and everything they had. They are now very wealthy due to being good with money and never had a debt in their lives so could afford to send us kids to private schools. We never went without as kids but my parents did. I guess I grew up in a different era where money was easy to get hold of...I'm not making excuses but I wish I had learnt from my parents example.

If the attitude of people changed to a more less selfish "I want" and "I want it for nothing" to a more deserving, considerate attitude, we would all be better off, I have made plenty of mistakes in the past and boy oh boy have I paid for them, I did however gain an expensive education in finance from those mistakes and taught myself some new values in life, now at the old age of 27, I would rather stay in the house for months on end to ensure that my family and bills were sorted, 7 years ago I was running from debt collectors and bumping people left, right and centre, other mitigating circumstances in that era but I am not going to bore everybody with it, if we had less "consumerism" and "greed" in the world, as a human race we would all be better off, including the Asian children who work for 4 pence per hour making clothes for Primark so you and I can have a cheap work shirt or a tacky dress for a night out.

Herewegoagain

I may be just simpifiying this too much, but to me even if money is being thrown at us from all directions, we are the ones who made the choice and said yes. So we are the ones who took, then spent the money so we have to pay it back. It would never enter my head not to pay it back, and don't think I don't know how hard it is, to me that's not the point. I just wouldn't be able to face myself if I didn't do so. Best wishes to all of you out there, whatever your circustances and good luck xx

Deep_In_Debt

Proliant, yes I agree, I had/have that attitude. I've learnt my lesson now though and I'm a lot older than you. Pity it took me this long to learn but I guess years of trundling along thinking everything was ok has now bitten me on the bottom. I intend to be debt free before I pay my mortgage off so I am still young enough to enjoy life (if you can call 45 young) The only thing I can remember doing at your age was paying the mortgage! I spent my younger years just enjoying life and travelling. I live on my own so only have to worry about myself, I'm not consumed by greed but just looking after myself - nobody else is going to do it.

Broken_hearted

If you view yourself as a victim it makes everthing harder. No is a simple word if people said it more they would have less debt.

PROLIANT

Deep_In_Debt wrote: »

Proliant, yes I agree, I had/have that attitude. I've learnt my lesson now though and I'm a lot older than you. Pity it took me this long to learn but I guess years of trundling along thinking everything was ok has now bitten me on the bottom. I intend to be debt free before I pay my mortgage off so I am still young enough to enjoy life (if you can call 45 young) The only thing I can remember doing at your age was paying the mortgage! I spent my younger years just enjoying life and travelling. I live on my own so only have to worry about myself, I'm not consumed by greed but just looking after myself - nobody else is going to do it.

I am glad to hear that you are getting sorted out, please excuse me but I wasn't calling you greedy or anything like that I was just generalising about people as they are..just people.

Mac_Sami

I've spoken about this on the House Prices forum, but I think it's partly related here.

Getting into debt isn't too much of an issue, provided that you can live within your means, and still afford your debt / expenses if they increase.

The problem we have is that many people lack financial acumen, not through any fault of their own, and get into debt without necessarily realising the consequences. For example, they know very little about budgeting or how changes in the economy will affect them, and therefore take large mortgages and credit card loans without considering the true implications.

We have others who are just financially irresponsible, who choose a luxury lifestyle without considering the cost implication on them and their close friends and family.

I'm not pointing the finger or suggesting anyone here is like that - but I think that the big issue in this country is that we are not taught much financially, and therefore feel we have no choice but to take a mortgage for a house (when we could in fact rent), and don't have much of a concept or understanding of saving.

As I said, I'm not trying to point the finger at anyone - I think this is a general problem that needs to be addressed. I feel that if many people were given even the most basic financial advise at an age where they would listen, it may have helped some of them.

I've seen arguments about how the banks lend lots of money, and therefore should be responsible for people's debt. Sadly, this is how the banks make money - they want to lend vast sums of money to people, in the hope that they pay it back with the premium of the interest rates. Just because a bank says they'll give you something doesn't mean you have to take it.

sam89

We are 100% responsible for our debts!

This is not an excuse but we live in an area that is very oil-rich and although neither of us is in the oil industry we tried to afford all the things our friends were doing. Immature and stupid, I know. .

I intend to pay back every penny we owe within 6 years. Through Payplan we have manged to get 0% or reduced interest on all our debts. I don't feel any guilt about this because that is exactly what the financial institutions do to lure you in so they can do it to help us out.

It concerns me to read posts from people on DMPs asking when they will be able to get credit again, they clearly haven't learned the lesson yet. I never, ever want credit again, what I can't afford I won't have. It really is that simple!

Sam,
x.

PROLIANT

I think that schools should introduce a "Financial studies" class from year 7 seniors and up until they leave school, savvy with finance etc so they are in good stead when they start out on their own in life, I will be educating my two boys when they are older, 4 year old and 8 month old at present, they will make a choice when they leave home and make a life for themselves, I will try my best to guide them in the right direction.

Deep_In_Debt

PROLIANT wrote: »

I am glad to hear that you are getting sorted out, please excuse me but I wasn't calling you greedy or anything like that I was just generalising about people as they are..just people.

Proliant, that's fine. I knew you were generalising. But it is true, it is greed and keeping up with the Jones's. I live in an affluent area and everybody has posh houses and flash cars. I don't, but for years I felt I had to live that lifestyle. I have a small house and an old car - and I don't care now what others think about it but before I did. Society has a lot to answer for. I've now stopped shopping in Waitrose and Sainsburys and now shop in Lidl. My neighbours see me carrying my Lidl bags and I can almost picture the look of shock on their faces...I know for a fact that they are struggling with their mortgages whereas I'm not so they can mock as much as they like.