I got into debt trying to keep a roof over my head and yet....

richardvc

I got into serious debt trying to keep a roof over my head after redundancy and taking a job with far less pay. Then I had a personal tragedy which set me back.

Yet I still feel guilty about it even though every penny will be paid back eventually.

Then I see / read about other people taking flash holidays/smart cars on cards/loans etc etc and walking away from it by either bankruptcy/IVA etc

Without wishing to sound too critical, I will be paying my debts off for about another 4 to 5 years and my credit rating will be hammered yet if I am correct those who walk away from it do not pay back anything (or pay back far less than they spent/borrowed) and get to rebuild their credit rating quicker.

Is this justice?

I would be interested to hear how you got into debt and how you feel about it now you are tackling it (or not).

Am I right to feel this way or is this my problem and should I treat irresponsible borrowers with more sympathy.

Kevicho

To be honest in the long run there going to be worse off

Concentrate on how well you are doing, ignore these idiots

earwig

hi we got in to debt like you trying to pay all our bills when our income droped by more than 600 per month we had so much debt and no way of repaying it so my oh went bankrupt yes he walked away from his debt but there was no other way we would of liked to pay it but we couldnt pride didnt come in to it if you can aford pride you can aford your debt cause belive me when your back against the wall there is no choice we didnt know our income was going to drop and our situation was so bad there was no money left for a dmp it would of took us beyond reterment to pay back what we owed and we are in are early thirtys so we dont all go having fancy hoildays and cars ect then avoid paying for them but like you it makes me mad when some people do just that

richardvc

Earwig I admire your honesty (a common thread on this website). I guess it is the wreckless spenders that wind me up.

I used a credit card to pay my mortgage when the mortgage company refused to help me (ie payment holiday, reduced payments etc) and ended up with all sorts of problems and a life far from the way most extreme debtors are portrayed ie 5* holidays, top of the range cars, latest gadgets etc etc.

livinginhope

Hi Richard,personally I haven't read about anyone getting into debt by living the high life ,I think like you the majority is just overspend and day to day living with a change of circumstance thrown in,my debt was my house burning down and 6 redundancies,so hardly 'living it up'.
I agree some people had flash cars etc,but if they were managing that's fine,it only takes one thing to tip the balance for most people to get into debt,then it's down the slippery slope until things get unmanageable.
Well done for dealing with your debts,but don't be too harsh on others who 'walk away' as you call it,sometimes it can just take over your life to the point of despair and this can be the last straw for many.

bobble_hat

I've been in some degree of debt ever since I was old enough for a Bank Account! I was just a classic overspender with nothing to show for it. I took the drastic option of selling my home to get out of debt, it was a quicker solution, and I don't regret it but I wish there had been another option, I only found this site after the event.

However I've really learnt my lesson, I got a lovely big cheque from the profits of the sale, then had to divide it amongst my creditors, that was the most bitter pill I have had to swallow, but they were my mistakes so I've dealt with them. I've got just under £3,000 to go, it should take me 6 months because I've decided to save to visit friends in Australia next year and I'm saving alongside the debt which is now at 0% interest (although the other half is student loans, which I'll pay off after the CC).

I think like putting on weight, gaining debt is a really slow insidious process, and most people have nothing to show for it, and find it difficult to account for. I didn't take holidays, I don't have expensive hobbies, I'm not really sure how I got into such a pickle! I did have a nasty car accident and was off work and had to have four years of expensive, painful dental treatment. I did overspend on home improvements too. But hey-ho, there's light at the end of the tunnel.

Mrs_Sparkle

OK, well I'm a reckless spender- or have been in the past- and am now paying every penny back. I may have been stupid in the past but am now absolutely committed to paying off what I owe and taking a more sensible approach to managing my money.

Anyone who got into debt through hardship has my utmost respect- somehow it seems more "worthy" than my stupidity. But surely the most important thing is how you deal with the debt once you've got yourself into that situation?

going2die_rich

I don't have any debt other than my student loan but I am young so their time yet, but I'd like to think that I will pay back whatever I owe. But I agree that people now go down the bankruptcy route like it's nothing.

I think it should be an option for anyone struggling to repay debt but it should have far more harsh conditions which limit at least the next decade of your spending. Surely it should serve as a punishment since so much debt is just written off and others are left out of pocket because of them. I think it's only like a few years now which makes it so easy for people to claim bankruptcy without any longer term punishment for their poor financial decisions.

There will be a wave of bankruptcy claims come early next year with the over spending xmas costs added together with a likely interest rate pushing people over the edge. All because most of the people claiming bankruptcy lived outside of their means. It can't be hard to know what you can and can't afford and simply going without rather than go into debt for it. Nights out, holidays and nice homes are luxuries and cheaper alternatives exist if you wanted to live within your means and not get into debt.

richardvc

I like you bobble_hat had to sell my house.

We were lucky enough to have a house to sell in order to pay off our debts.

The common thread seems to be 'life setbacks' ie car accidents, illness, redundancy etc etc that seem to catch us all out.

Maybe (and only maybe) we get the satisfaction from paying the debt back as a cure for our guilt in running it up in the first place !! Somewhat deep I think............ !!!!

richardvc

Mrs_Sparkle wrote:

OK, well I'm a reckless spender- or have been in the past- and am now paying every penny back. I may have been stupid in the past but am now absolutely committed to paying off what I owe and taking a more sensible approach to managing my money.

Anyone who got into debt through hardship has my utmost respect- somehow it seems more "worthy" than my stupidity. But surely the most important thing is how you deal with the debt once you've got yourself into that situation?

The difference is Mrs Sparkle is that you are paying it back.

lynzpower

Absolutely Mrs Sparkle.

I have got into debt by putting food on my own table ( student loans anyone?) and surviving on debt alone for 3 years.

I have bought some reckless things a holiday being one of them, but more was the upshot of not knowing how to budget, and not budgeting at all. Ie if I can squeeze 5.00s worth of credit on my CC, then I will do it and buy food with it.

I now have seen the light. Ive never hhad spending problems overly, just that I havent been able to budget. Now I do, and Im happy about that. Not long to go for me now