How did you get into debt

scottishspendaholic

Hey everyone,

Mine was just stupid things - I'm a real Thatcherite child (or so my mum says) and a child of the 'have it all' generation. I don't think I realised until about a month ago - that it didn't just deserve things - I had to work for them.

So, to answer your question village_life - I got into debt by thinking I deserved that holiday 'cos I worked hard 48 weeks a year, or I deserved that new handbag 'cos it was Friday or I deserved new books 'cos I needed something to read at the weekend or I needed that new lipstick for my Saturday night out - all frivolous things and I've nothing to show for it except a couple of (now) tatty handbags.

I am (slowly) getting a much better idea on how to budget and find ways round things and really understand that you don't need things as much as you think you do. I wanted Martin's book - so I went to the library. I wanted some wool for knitting so I asked my mum for it for my birthday. I wanted some new toiletries, so I went to the back of the cupboard and rediscovered lots of dusty old perfectly lovely toiletries I'd forgotten about etc, etc. I've not been really good - I went back to my 'spendaholic' ways yesterday - but I'm slowly and surely getting there.

As my signature says, I really want to pay off all my debts. I think my proudest moment is going to be paying for something, knowing that I've really earned the money and its not pretend Monopoly (plastic) money. I've yet to have that feeling. Over the next four years, I am determined to get in a financial position with debts paid off, cheap wedding and fairly new car - that I can one day live my dream of being a stay at home mum.

scottishspendaholic x

mom23

Mainly due to my father dying very suddenly a couple of years ago,they didn't have much, no holidays ,drove around in an old banger etc, yet he worked so hard!!! so my excuse was always " life's to short"!!! so mr barclays etc paid for our holidays,clothes etc and here i am today with a lot of debt.
But not anymore, since having my lightbulb moment i have turned into a right old scrooge, (even take the pennies out from my hoover bag!!) how sad is that lol!!

lottie26_2

I would say with me it was a combination of spending money on things that I did need but could waited to save up for instead.
I have always paid more than the min payment each month but I kick my self now for being so daft, but I can see light and the en of the tunnel

*Louise*

My partner was seriously ill for a year and a half, I gave up part time work to look after him. Got no help with the mortgage even though he was claiming incapacity benefit, so ended up using CC's to pay bills and catalogues for clothes/christmas presents.

Getting sorted out now though.

jitsuguy

For me, it was spending money I didn't really have and my masters course. I borrowed £5000 and used credit cards and overdraft. But it is being cleared - hopefully in the next 18 months (maybe even sooner).

Nath

gem4

Mine built up gradually on one credit card, used in an 'emergency' with the promise of paying it off when the bill came, but never having the spare cash to do it with. They were only small household items, but included petrol, food and car repairs and they all gradually added up to a huge amount.

It was also a case of being ignorant of the ways that credit cards operate and only the small print to gain any knowledge through. I paid the minimum payment for years and years as it was all I could afford, then when they put the minimum payment down from 5% to 3% (yes, that long ago), and then down to 2% I thought I was better off as I didnt have to pay them so much.

Even though I was an unemployed housewife, single parent and on benefits, the credit card company kept increasing my limit now up to £10,000.
My lightbulb moment came in Oct 2004 after 28 years, when I worked out how much interest I was paying on the balance and discovered I could have a cheap rate loan to pay the bulk of it off with a total interest payable equivalent to what I was paying the CC in 10mths .

Thanks to this site and the wonderful people on it, I've been enlightened still further and now I understand more about credit cards etc I have finally cleared the balance this week and also reduced the credit limit to £5000, but I will close the card completely as its rubbish compared to new ones they offer to 'new customers only'. So much for loyalty. I've been with them for 30 years in total ignorance and I dont even want to attempt to add up the amount of interest I've paid them in that time.
I fear for young adults who get bombarded with postal junkmail for loans, cards etc., because they have not yet learned the pitfalls.

bank_of_slate

Mine began when I got a new job and my salary doubled overnight.

We had recently bought an old house and I bought lots of things on credit, sure of the fact that with my increased income I could easily afford it.

Yes I'm happy that I have things to show for my spending, but I'm not happy about all the payback...with hindsight I wish I'd waited for the new bed/suite/carpets etc....
...Linda xx

Grovers

I was young and stupid, and basically just didn;t bother to pay my loans and CC's back. It all my own fault, and I regret it big time now.

novice_money_saver_2

I borrowed £20,000 to put myself through college. By the time I was out of college and earning, the interest had pushed it up to £24,000. So it was a calculated decision (sort of) although I didn't appreciate what life would be like with that amount of debt hanging around my neck.

Been paying it off since 2001. I feel so close now it's down to 4 figure sums rather than 5 ! Still a way to go though.

beach_3

I spent money also on living a lifestyle I could not aford. I stuck my head deeply in the sand, did the clasic of keep taking out consolidation loans to pay off cards then just using them again, how stupid am I. I AM NOW REALLY SCARED OF TAKING OUT ANOTHER CONSOLIDATION LOAN, THATS IF i CAN GET ONE, BUT i WILL HAVE TO TO PAY OFF WHAT i OWE, WHAT A MESS. i AM STILL REALLY ANOYED WITH MYSELF.