How common is my situation?

AspiringButAnxious

I think having that amount of debt is very common, but the total debt is only one aspect of a person's financial situation. Factors like annual salary, interest rates, attitude towards money, cost of living/disposable income available, etc. and how they relate to each other are just as important, if not more so.

Look at my total debt: £14,000 is a lot of money to most people, but when you consider that my main income is £5,400 a year ESA it appears to be a much worse situation.

However, I live with my parents and pay minimal rent (just covering food and maybe a little electricity), which means I repay £200 per month — £2,400 a year — and have severely reduced my spending elsewhere so that I can use the remainder of my money to put towards savings and, once I have built ip my savings, towards paying more of my debt. I'm only able to do this because I addressed my impulsive spending issues and have it (mostly) under control.

Although my debt was lower a few years ago, it was out of control: I was continually adding to it by junk spending on things which didn't make me happy. I was also lucky enough to make an arrangement with my parents, so that they took out a loan to cover my credit card balance and what I already owed them. This slashed the amount of interest I pay per year, despite the fact that I now pay interest on what I owe my parents. The money I now pay every month is actually reducing my debt, albeit slowly, rather than just covering the credit card interest and barely making s dent in the balance.

I may owe more now, but I am making a lot more progress in reducing my debt and sptsking control of my finances. The point is, you can't really compare your debt to other people's except in the abstract. We all have individual circumstances which impact the rate we pay (or add to) our debt and our ability to earn or save more.

There are bound to be loads of people in a similar situation to yourself, but I find that attitudes and behaviour matter more than numbers — I am inspired by people on here who have very different lifestyles, priorities and incomes to me. The people from whom I have learnt the most would appear to have little in common with me on the surface; they often have families and jobs, for a start! The level your debt reaches before you tackle it is relatively unimportant compared to other factors: I wish I had managed to stop my impulsive spending when my debt was only a few thousand pounds, but I'm also grateful I could stop before it hit £30,000 or more — which was a (terrifying) possibility.

getmore4less

Terryschocorange wrote: »

So I am finally here it after spending months of pondering whether to join up.

I am currently in a bit of a pickle with my finances. 3-4 years of overspending and bad decisions has left me 22K in debt on a salary of 33K a year. I am 30 years old and live with my partner although he is not involved in my debts and I want to keep it that way. He knows I am in debt and that it is significant but I don't want to discuss amounts.

I have read somewhere that the average debt is 8K per person. This makes me shudder as I owe almost 3x that amount! How common is my level of debt - £22K ?? I don''t really have anyone to talk to about it so I don't know how to gauge how bad my situation is.

One of my close friends does know and they have said that 20K debt is quite common but I can't get past the feeling of total shame.

This level is a lot more common than a lot realise. but everyone is an individual so it about you not others.

I pick up on the bold.

One issue a lot have is the "keep up with the jones syndrome"

This is where your ability to cut back is hampered by trying to contribute to a joint lifestyle you can't afford.


The first step is to understand your finances for most that means starting to budget properly and most use the SOA format to kick start.

edit: should have added...

you may not want him to know the details but he does need to know what you can afford to live on

Terryschocorange

user1168934 wrote: »

I do apologize, did not mean to come across like that - very sorry.

It wasn't a great choice or words but I forgive you xx

[Deleted User]

There are some positives regarding your situation; at least you're in employment and receive a salary that isn't bad by most standards. Imagine that debt and being in receipt of jobseekers! With help from stepchange or other debt charity, I think you could be realistically debt free.

enthusiasticsaver

The average per person may be around £8k but there are a lot of people who do not have any so for everyone who has no debt someone else has £16k or more. What is more of an issue is if your debt is increasing this is a warning sign you are living beyond your income and should probably address that before your £22k is £30-£40k which is common on this forum.

Lemonsqueezer78

I understand the reasons why the OP asked the question - and the replies have been quite interesting.

But... I do actually think it's a waste of time - and even a bit dangerous - to seek to rationalise (or even normalise) your own debt situation by trying to establish whether your situation is "common" or not. Especially doing this on a forum like this which (no offence to my fellow posters) is actually designed for and frequented by many folks who - by their own admission - are living in their own debt nightmares. Obviously it is not uncommon around here.

The question should not be "how common is my situation?" - "or am I "normal" in having this much debt?" - but more one of "how do I feel about my own situation?" or "does it feel good/right to ME, that I owe this much money?"

How far plus-or-minus the average you are doesn't really come in to it. The fact is, in the UK, it is the case that large numbers of people have extreme amounts of debt. And the fact is, for many people, it can end up ruining their lives.

My view is, just asking the question in the first place kind of suggests the OP doesn't feel great about things as they are and therefore needs to do something decisive to address things....even if the anecdotal evidence given on here is that their situation is not uncommon. All that shows is that the OPs situation is not uncommon, amongst a demographic group of people who mostly all agree they have too much debt and wish more than anything that they had less.

Jon_B_2

Forget the total figure. They key one is to divide your amount owing by your annual income.

You are currently at 66%. I don't know what I'd consider high, but I'd probably say anything over 30% would make me uncomfortable. I'm currently sat at 5%.

pennystretcher

Forget about everyone else and concentrate on your own situation.

Set yourself a target and budget accordingly. £22k is a lot, but manageable as long as you have a plan and stick to it.