Once in debt, always in debt?

flyingguy

Hi all,

I've been reading a lot of the posts here for a while now as it's helped me a lot, I was in debt and I hated it. Something which has been in my mind recently though is this; how many of you here, or perhaps people you know, have been in debt, cleared their debt, ended up back in debt again?

I've been in debt myself thus killing my credit score, thankfully! I see it as a saving grace and it makes me realise why we have them in the first place, as it makes it pretty tough to get credit again. I just wondered though whether being in debt is similar in any way to say a drink or gambling problem? There have been times when I've thought to myself, great I'm clear of debt now, I suppose I could manage just one credit card etc. Have others experienced this, a sense of achievement which makes you think you've dealt with your problem. IMO, looking at the various SOA's etc, debt is like gambling, you have to keep on getting more credit to pay off the last lot until you end up posting an SOA here.

Anyway I'd be interested to hear other perspectives on the matter, thanks for your time

Percy1983

Well I am nearly clear and not going back.

I suppose it depends how you clear them and how you feel when you cleared them.

In any case you have to budget to clear debts and part of that process is reviewing how said debts came about and how to adjust your spending so it doesn't happen.

The only danger is once debt free you think 'back to normal' and go back to the overspending ways.

In my case I have learnt form the experience and won't go back (along with many others) as I am no use to spending less than I earn and I happy so why change that.

mrsb83_2

I don't think being in debt is an illness like gambling. If your debt is because of compulsive behaviour, then maybe, but most people have debt of one sort or another and it doesn't mean they have a compulsive problem.

A lot of people here are in debt because they have/had poor money management skills. The habits I've learnt over a long period of debt busting have totally changed my way of looking at my finances. I have no doubt that I'll have a CC and an overdraft facility once I'm debt free though. I'm not anti-credit.

flyingguy

Percy1983 wrote: »

Well I am nearly clear and not going back.

I suppose it depends how you clear them and how you feel when you cleared them.

In any case you have to budget to clear debts and part of that process is reviewing how said debts came about and how to adjust your spending so it doesn't happen.

The only danger is once debt free you think 'back to normal' and go back to the overspending ways.

In my case I have learnt form the experience and won't go back (along with many others) as I am no use to spending less than I earn and I happy so why change that.

I'm happy to hear you say that - that's how I feel but I know it's easy to think you're 'back to normal' as you say.

On a slightly seperate now, looking at the various SOAs, I think lenders are as bad as casinos encouraging people to come in and gamble. You see people with multiple credit cards with 10's of thousands of £££ debt, and you just feel angry that they allow people to get into that situation. Years ago when I was a student, I had a virgin credit card which I didn't use, I swear after a year of not using it, my credit limit was up to £7000!! I was getting letters in the post constantly telling me they'd increased it. These companies were (are) just encouraging people to spend when they know they can't afford it. I was only earning about £7000 a year P/T as well.

flyingguy

mrsb83 wrote: »

I don't think being in debt is an illness like gambling. If your debt is because of compulsive behaviour, then maybe, but most people have debt of one sort or another and it doesn't mean they have a compulsive problem.

A lot of people here are in debt because they have/had poor money management skills. The habits I've learnt over a long period of debt busting have totally changed my way of looking at my finances. I have no doubt that I'll have a CC and an overdraft facility once I'm debt free though. I'm not anti-credit.

Perhaps not an illness as such, but quite often the reason gambling becomes a problem is because you end up in a viscious circle of needing to gamble in the hope a big win will cover your last big loss. I think debt can be very similar to this and the misery that can result is similar. When gambling, money looses it's sense of value and the figures become inconsequential, and I think the same thing often happens with spending on credit. It certainly did for me, until the reality hits home of having to repay it.

I speak from experience with the gambling btw

Percy1983

This is true, my available credit has been more than a years salary for a long time, as it is my total debt was also more than a years salary for a good while. Luckily it never got too much for me and I have come out the other end with an amazing credit report. I have actually reduced credit limits and closed most accounts now.

As another poster said I am not anti credit, I just don't see it as free money anymore.

As for thinking back to normal, in my case the debt clearing has been so long that this is now normal for me.