Debt up 7.3%

Dan:_4

Guy_Montag wrote: »

For those asking "How much of this is tarting?"


Would you say it's easier to tart in the last few months, than last year?

I have had no problems tarting/stoozing over the last few months, infact I have been quite impressed with some decent credit limits.

WTF?_2

lostinrates wrote: »

I'm really not surprised debt is up. You can cut back all you like on the day to day stuff, but when unexpected things crop up if you've cut back and are paying the same (as is the case in the Lostinrates household) then a decision will always be wait and save or debt. For many debt is the obvious answer, sometimes wisely sometimes not.

I think the problem is that a lot of people are only just making ends meet - not helped by having to service debt. Thus the unexpected expense which inevitably crops up requires credit to meet... which increases the part of their budget spent servicing debt ... which makes money tighter. A vicious circle. Things are a lot easier with a healthy bank balance and no need to pay over the odds though credit. And make no mistake, credit means paying over the odds. If you possibly can, it's always better to save up for something you want to buy unless you are genuinely investing in your future (training/ education).

People in this position really need to make an effort to pay down debt now before things get more critical. Don't wait until the recession deepens and job security deteriorates. Having debt hanging over you is an awful feeling and even if you are just managing to make ends meet it's not great knowing that your back could be against the wall at any time.