how did you end up in debt?

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  • blueblood_2
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    Classic example of a kid with no money experience and living it up:

    1.) Credit cards and bank accounts with large overdrafts: Maxed

    then

    2.) Store cards...........that was a BEEEG mistake :(

    then

    3.) Consolidation load, but not cancelling credit cards...didn't take long to max those back up.

    4.) Drinking and partying without saving a penny or paying back hardly anything.

    5.) Another consolidation load


    and TADA: £17800 in debt (plus a student load of £17500)


    The blame lies primarily with me not understanding anything about budgeting and personal finances...however I maintain that with a poor credit history I should not have been able to take out further credit...especially store cards with VAST APR s and punitive charges on cash withdrawls, and Momument credit cards with its 31.99%APR. Hey ho.

    But now on the road to recovery...debt down to £13500 (and with arrangement through loved one, an APR of 0% for life of the loan...all credit cards cancelled) and student loan down to £15000
    :D
  • loislane999
    loislane999 Posts: 62 Forumite
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    Hate to say it, but i never learned my lesson from first time I met a guy and he got me into debt by drinking every penny we had while I brought up our kid, paid bills etc on my credit cards (he had none). That was 10 years ago, took me 7 years to pay off those debts, now I am back to square one again (but worse this time).

    More recently had boyfriend with his own garage business who begged, harassed and nagged me till I 'lent' him £2000 to help prop it up as he could not pay his bills, so I got cash out of the credit cards. It happened again a couple of months later (as I had already invested in the company, I would lose my original investment if the business went under), so I lent him more, and more, and more, including a new venture for DJ equipment and new garage premises. He now owes me £9000 and has left me to go back with his ex-wife (funnily, at a time when I absolutely told him I had no more credit).:mad:

    As well as his debts, I lost my own main contract for my business and have been struggling for over a year to build my business up again, resulting in a loss last financial year (2009 - 2010), so the credit cards have been runnign hot, which now results in a £17,000 debt! :eek:

    Just had to cancel all credit cards, all direct debits and standing orders as my bank account was charging me around £75 per a week for going over the limits, bounced payments etc. And the money my ex has promised to pay me back (at £100 per week) has been little and not very often.

    To top it all off, the Tax Credit office is messing about with my most recent claim, leaving me with no tax credits whatsoever.

    It is taking up time to sort it all out and get in touch with creditors etc, when I could be working or looking for new jobs!

    :(
    :ALois Lane 999

    Proud to be dealing with my debts!! :T
  • maxipax
    maxipax Posts: 6 Forumite
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    Just wanted to say that like most of you on here I really appreciate seeing that I am not the only one with money worries (and other worries). I can say that I too am not entirely sure how our debts built up but currently we are really trying to get ourselves back on track with all the wonderful advice available on the site. Like I keep saying to my husband, its not really too much of a problem how long it takes us to get out of debt but understanding and accepting that we do have debts which need to be addressed and keeping our heads out of the sand and facing up to things which isn't always the easiest thing to do.

    Once again thank you to all of you who are too numerous to mention whose comments, advise or even little blurbs have all been little inspirations.
  • clarab_3
    clarab_3 Posts: 691 Forumite
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    For me it was

    1. Student debt
    2. an attitude of "well a bit more wont hurt" when I was already in debt
    3. Living beyond my means
    4. Emotional spending - spending money to make myself feel better (much as I comfort eat!)

    As you can see from below, it does go down. I haent taken any new credit in 5 years. Im still an emotional spender though, just that it has to come from what is available to be spent or saved for.
  • Greenshorts
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    For me....

    Moving home for new lower paid job and live in accom.
    Ended up renting in local area and cost double what i was paying before. Previously took out a loan to consolidate debts, Llyodstsb attempted to take money out of my account when there was none. Charges followed. Charges then forced me into un authorised overdraft... More charges of around £150 min a month. No money to pay these and yet more charges followed (don't forget the interest too!)
    £5500 and 3 years later still trying to pay it off.
  • nolongerindenial
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    well, I was young, naive and away at uni. My savings quickly evaporated as I quickly went down hill and was out drinking all night, then I drank the student loan for my first term in about 4 weeks - so basically 2-3k spent in 4 weeks at uni and the accomodation hadnt come out.

    I went to the bank begging for an overdraft and everything went downhill from there. by the end of my second year at uni I had to take a year out in industry to try and pay things back which never happend - went back to uni and needed more and more money to live on (as I had got used to it) and then things spiralled from there....

    6 years on from the initial overdraft, I was 33-35k in debt, with two cars on finance, a third paid off on a consolidation loan but had been sold and made redundant from my job....

    Nearly £800 a month of debt to pay on top of my mortgage - so I went self employed. we did really well and to date I have paid of 1/3rd of the debt, but I credit my real light bulb moment to 12th march 2010, when I realised with little baby I need to grow up and do whatever it takes to get out of debt as quickly as is physically possible
    £4142.49/ £131,795.91 - 3.14% paid off or only £129,608.80 to go!
    Debt free by Xmas 2015: #182 £1955.38/£4435.51 (44.08%)
    MFW: Opening Balance: £108,297.91 Original MF Date: June 2042
    Current Balance: £106600.27 Estimated MF Date: Dec 2033
    Proud to be dealing with my debts
  • mikeypob
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    Bought house with partner in 1990 when interest rates were 15.5 % and then got caught in negative equity.
    Credit cards have kept being maxed and consolidation loans added to new mortgage but cards still being used. Have about £20000 on cards so personal loan is next step and crads to be finally cut up.

    It is really uplifting (if right word) to hear other stories on here nad you realise it isnt just me with a problem.

    MSE really works !:T
  • likkleangelhj
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    I think most of us on here have taken ownership of our own mistakes. That is the first step.

    In my case, my debt (currently about 40k) I had an abusive partner who persuaded me t remortgage my home in order to pay off all my credit cards and loan. Once the equity money was in my account, he grabbed my knee and ankle and ripped my leg out to he side at 90 degrees. Needless to say he did some serious damage and I was in a cast and then caliper for months. I couldn't go out or do anything especially as I live on the first floor. Then, without me realising, the bast&&d took my bank card and basically withdrew all the money and then somehow spent most of it whilst I was stuck at home in pain and agony. I threw him out and called the police. They took him away and I haven't seen him since. He got away with the assault and the money. I just live in the hope what comes around, goes around.
    Everytime I have another letter through the post that contains threats and phone calls telling me court action is imminent, I live with what he did to me everyday but Im working through it. Im stronger than he ever would have imagined and with the use of this site I have managed to get some old PPI money back, Ive used tons of vouchers, taken advice and Im on the up.

    Like a phoenix, I am rising from the ashes :A
  • Evilm
    Evilm Posts: 1,950 Forumite
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    The comments above make me feel quite glad about the way my mother brought me up. She always insisted Credit Cards were bad for you unless you are careful and because she knew I would be getting some money from a (small) trust fund when I was 18 taught me the value of money.

    Luckily I learnt from this and only got a credit card a few years ago and treat it like its coming straight out of my bank when I spend it (and it gets paid off in full by direct debit).

    Due to the small trust money we don't have a huge mortgage and so far we are just about coping without running up debt even though I am unemployed at the moment and we are surviving on hubbys salary. Whether this situation changes when we have kids in the next few years I will have to wait and see!
  • sara86pink
    sara86pink Posts: 324 Forumite
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    I can barely remember what my debt was now after all these years! Its been up and down so much.

    Got a loan when I was 19 for a car (payments made on time all the time) then when I was close to completing it my ex moved out of our rented place and refused to give me a penny so I was forced to pay for a place for 2 on a 1 person salary, the bank extended my loan to help me cover the payments (cant remember the exact amount)

    Then I got a credit card and maxed it out on girly shopping to cheer me up (£3k). I then sold the car and totally paid off the credit card.

    A couple of months later my mum died and in all honesty, my mind is a blank for a long period of time after that. I remember that my inheritance money went to clear all my debts and maybe the odd nice thing for me.

    This is the thing that upsets me the most because I had all this money (it was a hefty sum if I remember!) and it just went all on debt whereas if I had been sensible I would be in such a different situation.

    Now, almost 2 years on, the credit card has been maxed out again because of unemployment for a few months and benefits not coming through, £700 overdraft just because I could have it and roughly £12k to my dad for bailing me out every now and then over the last 2 years (and buying me a new car)

    Basically, after all this, I have FINALLY learnt my lesson and this will be the last time I'm in this situation!
    :j *~* 2011 - TRY TO GET CREDIT CARD AS LOW AS POSS BUT STILL HAVE FUN *~* :j
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