*waving nervously*

Imbroglio

Hello very nice MSE people,

I've been lurking on here for a while but was motivated to sign up because I saw a thread that I thought I could offer a tiny bit of help on, which is very unusual for me when it comes to finances. I just wanted to say hello and introduce myself.

I'm 27 and my debt problem started towards the end of my six years at university. I'd always been so careful with money, knowing that I'd signed up for a long course, and living very frugally became second nature. It helped that the majority of my friends were in the same situation so we looked after each other when things got tough.

As my course intensified, it became impossible for me to keep a part time job as I was moved every 8 weeks or so to a different town and was expected to do night and weekend shifts at times. Unfortuately at about the same time my student loan instalments were halved, so along with many of my colleagues I applied for a professional development loan with the bank to bridge the gap. The very friendly bank manager also suggested I got their credit card, for emergencies and to help build a better credit rating as I'd obviously use it sensibly... obviously.

I got into the mindset that borrowing is ok, and credit cards just felt like a bit of extra money. Fast forward a few years and I owed over 12k to the bank and credit card companies, I was still using my credit card heavily despite earning a decent salary, and they just kept upping my credit limit. Fortunately I never missed a payment on anything, the one sensible thing I did was set up direct debits.

I kept this all a secret, a big shameful secret that kept me awake at night. Then, my boyfriend proposed and my life suddenly wasn't about me and what fancy shoes I wanted any more. It was about the reality of starting our own family unit and building a future together and I was so worried I'd hurt his chances of getting a mortgage etc, all my terrible secrets came pouring out in a big tearful, snotty mess. He didn't judge me and wasn't angry or disappointed like I feared. He just gave me a big hug, let me cry for a bit and then opened a spreadsheet...

We're newlyweds now, and things are slowly improving. I've taken a >50% paycut since August so that set me back a lot and the borrowing crept up again. However, I've cut back on spending even more and am currently managing to pay off £400 a month. I've just applied for a nice long, low fee 0% balance transfer card to stop paying some of the 18.9% APR that I was paying out of fear of being declined for a new card to shuffle onto.

Feeling more positive now I have a plan and a dent has been made in my debt since October

Thanks for reading my essay of an introduction, and a massive thank you to you all for being here - reading everyone else's stories are what gave me the courage to face things a bit more head-on

NHS_worker_bee

Hello Imbroglio

I have also been lurking on here for a while just soaking up all the invaluable information available. I saw your post and felt I could really relate to it as I am in a similar position to you so it gave me the courage to finally write a post and introduce myself.

I'm 24 and my debt problem also started during my time at University. I'm now qualified, working full time in the NHS and determined to stop burying my head in the sand and sort the situation out. I, too, am very lucky to have finally talked the whole issue through with my very supportive partner, which is itself was a huge relief. I'm also due to take a short term cut in wages (half pay + statutory sick pay) due to an ongoing health problem which has resulted in some time off work. However, thanks to the great advice I've got from this forum, I have taken some positive steps to sort this out and am lucky to have foreseen this situation and will be able to meet the demands of my budget and make more than the minimum payments on my debts whilst I'm on reduced pay. This should mean when I do go back onto my full pay I will be able to hit the debts harder than ever!

I have shifted some of my credit card balance to 0% balance transfer cards already and am also making payments to my Barclays Graduate Loan, which I took out when I finished University to replace my student overdraft facility. I used to live on my own (this was when the debts really got out of control) but I now live with my partner which as well as being better for our relationship, has given me a wonderful opportunity to clear all my debt, which I am very grateful for.

I've definitely made some mistakes but I've also learnt a lot too, especially in the last few weeks browsing this forum. I think being hit by a sudden unexpected illness has really opened by eyes and made me realise my monthly income isn't guaranteed. I'm now so determined to get completely debt free and build up some savings for the future. So the silver lining of getting ill has been the kick up the backside I needed to get on top of this situation before it gets on top of me.

So, welcome from another newbie, I'm glad you're feeling more positive now, and I look forward to following you on your debt free journey. We can do this.

Best of luck!

Imbroglio

Hi,

I'm (generally) an NHS worker too, although I've taken a year out to teach hence the paycut, needed some extra time to plan where I want my career to go before jumping into something I regretted. I'm glad I did, and I think being a bit poorer has done me the world of good, teaching me to budget more and things. We've also taken in a friend as a lodger which is really helping us out, we're putting his rent and bills money into a separate account to save for our upcoming move in August, so we won't have to find a deposit and things from nowhere.

I'm really sorry to hear about your health problems, it's always a nasty surprise. I really hope it's not a long-term thing and you're on the mend soon.

Pleased to have driven a fellow lurker out of the shadows, we can do this and we'll have each other and the whole forum of people to help keep us on the right track. Now... to ebay to sell everything I can't imagine packing into a removal van!

cmcavon

Funnily enough my debt started at uni too! I was given a credit card which my mum told me to use for food and she paid it every month. I was good throughout uni years and used it as I was supposed to. However, when I left it became my responsibility and I totally abused it! I'm now 32 and still have the card with over £7000 outstanding. No missed payments but its a struggle! If only I knew then what I do now.

Money was never talked about when I was growing up, my parens had quite a lot but said it was rude to ask how much things cost. I'm so different with my children now!

FlyingBlue

I'm another person whose debt started while at university. I'm due to graduate in a few months, and thankfully had my lightbulb moment in January of this year.

The road is long, but the thought of being debt free should spur you on. Well done on finally facing up to your debt, and the challenge ahead.

solvencyseeker

Just to say well done for plucking up the courage to post and for starting to tackle your debts while you are still young. My son is about to go off to uni (hopefully) - I think I might get him to read this thread before he goes! I certainly won't be supplying him with a credit card.
Best wishes on your journey.

FlyingBlue

solvencyseeker wrote: »

Just to say well done for plucking up the courage to post and for starting to tackle your debts while you are still young. My son is about to go off to uni (hopefully) - I think I might get him to read this thread before he goes! I certainly won't be supplying him with a credit card.
Best wishes on your journey.

My university campus has a Santander branch in the main reception, and they often have people outside enticing students in to sell them credit cards and 0% overdrafts.

Hopefully this thread will give your son food for though when he's offered a brownie or red bull in return for signing up for an overdraft.

Imbroglio

Yay! Hello fellow uni-debt crew, for a while earlier this afternoon I thought I was going to be left all alone with no one to say hello back to me. You must have all been out enjoying the sunshine, which is what I actually did instead of putting some of my things on ebay.

I don't know if things have changed since I started uni 9 years ago, but the fees and loans system mean that there was absolutely no way we'd be able to afford to live and pay the tuition fees. Although the 1.5k per year sounds cheap by today's standards, we were only given 3k loan, and no one can realistically live on 1.5k a year when there are bills to be paid.

So, we all just got into the mindset that we'd have to borrow, and if that's the social norm amongst your peers it can be a very difficult mindset to get out of.

My degrees were very expensive, but they were an investment and I have a good career for life now. I think it must be emotionally harder for people left in lots of debt after uni who then find jobs that would not typically be graduate jobs.

Alex321

I've also been lurking for a while My problem with money started when I left for uni. A combination of having more cash at my disposal than I'd ever had before, but no real guidance on managing it.
Although I've been out of uni for 3 years it's only the last 2 months that I've broken the bad habits I picked up then, wasting hundreds of pounds a month on junk like expensive lattes and gym memberships.