Who is responsible for our debt?

lynzpower

Spirited, my thoughts exactly.

Additionally, I wonder when the "economy" is going pearshaped, which will affect both those in and out of debt, plus the house prices issue, a large impact is coming down to personal debts, loans & CCs.

So effectively, those who are borrowing up to the hilt effectively are stuffing the economy for everyone else.

With this in mind, I think the time is NOW for the government & education services to sit up & take notice of the poor tuition of debt management & budgeting in schools. Its one thing for the schools to encourage everyone regardless of academic ability to go to uni, but never have I heard of any school undertaking standard budget workwith pupils. This laissez-faire attitude reminds me of the old way of sex education "leave it to the parents"

I can tell you now I know more about budgeting than my parents do. Fact. But its only through the lightbulb moment that this has been seen.

Prevention better than cure.

lazy&indebt

It's my fault but i'm not too hard on myself about it, I mean, did anyone realise when they took out their first card/loan/overdraft that it was going to be this hard to pay it all off?
At least we have all realised that we need to do something about it and I bet none of yuo would get yourselves into that much debt again, I know I won't so by realising this (and taking Martin's advice to get consumer revenge) i would say it's MSE forum members - 1 lending companies - nil !!

Kevicho

Spirited i have no lack of compassion for others

However when it boils down to the cold hard facts, most people in life dont know how to manage there money properly.

We are not taught it in schools, the media preaches the complete opposite of any form of common sense when it comes to spending money, our parents are from a generation who were ill informed.

The fact of the matter is that society has been dumbed down to such an extent were the first thought on a persons mind is how they can look like there favorite celebrity, not how am I going to manage if i lose my job, someone close to me leaves, how i am going to cope when i am at an age were i cant work anymore.

Everyone makes there own choices in life, granted life isnt easy and it throws obstacles in the way and indeed it can be cruel.

However these things are not an excuse to be in debt, they are an incentive to plan ahead to not be in debt

Agreed not everyone can afford to save hundreds a month, but doing things like being more prudent with money, paying with cash not credit, doing enjoyable things in life that dont cost money, not becomming addicted to alchohol, gambling or drugs then not only does your financial life get better, but also the emotional side.

I mean, how many people in debt are truly happy? Its a downward spiral.

To suggest i have no compasion is rubbish, im saying this so that people wake up and try to improve there lives

Just saying there there it will be allright doesnt achieve anything, you need to be supportive AND constructive

Molanole

I think it is important to note that not everyone's situation is the same. Me, as I said before, it's mainly my own stupid fault. I also realise that I am the main breadwinner in my household and having had a close call with meningitis earlier this year I realised how exposed we are if I am unable to earn. No back up plan, no savings nothing, just a whole heap of debt with a BA Hons and a lot of CDs to show for it. There are many people however for whom debt was not their fault (illness, redundancy, divorce, the list goes on for reasons) and we are all here, on this part of the site particularly, to show compassion for those who have been brave enough to admit they have a problem.

I didn't learn about finances from the best people, my dad being up to his eyeballs in debt and still an ebay addict and I find that the terminology and jargon used by banks is so hard to understand which doesn't help. It was a real eye opener to me that if I only paid the minimum amount on my credit card I'd be paying it off for the next 20 years. Now, if the literature had been clearer I might (with what I think is a reasonable brain for figures) have been able to work that out for myself.

Education about managing finances, whether it be in school, in college, at university or at home is crucial. I know of at least one banking professional body which has attempted to address this by preparing a financial literacy qualification for students of A Levels. It even gives you UCAS points. I believe also that financial education in schools is something that the government are starting to concern themselves with.

So, who's for the plain English campain and financial literacy in schools?

tesuhoha

It makes me feel quite sad when young people claim its their fault they are in debt because they took out student loans etc. They should not have to get into debt if they want to study; they should be given grants. This is what happened in the good old days when people had no debts; students were given grants and did not have to pay them back. Also there were no credit cards in those days and as someone else said i think, debt was quite a shameful thing. Most people were paid in cash and that is all that they considered they had to spend, so they did not get into debt. So although it is people's fault (mine too), the world has changed beyond recognition. When I left school I can remember saving my money each week for a car but had I been offered a credit card in those days, no doubt I would have taken it.

uberzoldat

I am responsible 100% for the amount of debt that I am in, and the business I am partnering failing beyond my control is responsible for the fact that I now can't pay any of it off.

I have learned the hard way though, and some valuable lessons have come from my debt. Wish I had learned them sooner. :rolleyes:

OberonSH

My debt is a tricky one to blame on - My personal debt is bassed on my business not having the money to give me to pay bils, although the money that was available didn't make it's way to people like the phone company etc, but rather to the local takeout etc.

My business debt is simply a) the money t buy the shop and then b) I made the mistake of assuming the guy who sold me the shop was honest, decent etc and when buying stock I left it to him to advise what to take (as I didn'tbuy allt he stock with the shop, just £30k worth. Unfortun ately he left me with all the crap he didn't want and therefore I had to put myself in debt to get stocked up again. Ddn'y help that I was a complete business virgn and was like a kid in a candy store with the suppliers credit accounts. Cue £15k of debt in the first year, a chunk of that to the VAT people, and you DO NOT mess with the VAT man!

So for people in startup businesses I guess a certain amount of debt is inevitable, but it's whether you recify that situation and learn from your mistakes. I have, and hopefully I should be personally and business debt free before too long.

kar

I always think i'm out of debt now and saving for a house. Then I remember the 12K student loan. It's horrifying to think what the poor people are gonna owe now they have to borrow 7K a year (rather than the 4k I had to). I graduate in a months time. I haven't decided what to do about the student loan but adding togethre mine and my fiance we owe 24K (and that's without interest) - can't see anyway in paying that back AND starting a life.

When i was little I always knew i was going to university. I always wanted to. People got given money to live off whilst they studied and so i thought i would too. Then a couple of years before I started they brought in student loans. There was no time to adjust. There is no way my parents had that type of money lying around. It's just something I have to deal with but it's a hell of a lot of money.

livinginhope

Although I admit that I am to blame for our debts,I do also lay the blame on our bank,named and shamed Lloyds Tsb.we only had small debts that we were clearing,OH then got made redundant,we went to bank explained we would have trouble making payments,we walked out with a huge loan? I know I should have said no,but bank convinced me it would all be fine,OH was back in work quickly but the paymants were too high,we went back to bank the only suggestion was USE YOUR CREDIT CARDS,bad advice,we contacted CAB who wouldn't help us so throughout my illness and op,we used our cards,then house burnt down,we underinsured,loss adjuster made us pay rent on a house to live in upfront including deposit,all household goods and food,then when pay out we only got 5% of what we had paid out,
Now 107k in debt(yes gone down a bit)
I blame myself for being weak but also the bank for VERY bad advice.

In_Search_Of_Me

Just skim read all of the above and its interesting to see what others think. Here's my two penneth for what its worth (or not as some may say!)!! I think that the issue of debt is a complex one. Yes we need to take responsibility for our actions but what (I think but am sure someone will correct me if I'm wrong lol!!) people seem to have missed is WHY we got into debt. This will vary but for me it was filling an emotional gap combined with depression. I was a marketing mans dream. Used to buy Chanel face creams because the packaging was pure art & looked beautiful on my shelf. I brought 100% the message (& a well designed message at that) that if I had it it would make me beautiful, people would see me as a sucess etc. Now that I have had the courage to face up to it I realise how truely stupid I have been! Yup hingsight is great isnt it! Now I actually SEE the consequences of my irresponsible/emotional spending & at time it makes me feel physically sick. The interest alone is horrifying!
Having said that (& now seeing the light!) the constant bombardment of debt plan adverts worries me (ie the ones that say you're up to your eyes in debt, have CCJ's & no money but dont worry we'll give you more & you'll have enought money to get something else you cant afford!) to the point that I made a formal complaint to the advertising trading standards who basically said that as long as advertisers pay & remain within guidelines they can do nothing.
I agree that we have to take responsibility as individuals but for those of us who have genuinely been devastated by what we have done we also need to support each other thorugh what will be a long road ahead. Yes some will take longer to accept that they have a problem & they may try wangle this way & that meanwhile while they come to terms with it but that does not mean that we should trample them along the way! People who have been there, in the genuine depth of despair, know what its like and I hope that, regardless of where blame lies, that we will offer true & genuine support & likewise receive it along the way.