Just how rife is unsecured debt?

kimplus8

I think it is very common, in my circle of friends some middle class and some working class (and excluding mortgages and student loans) we all seem to be in debt. some live off their credit cards even.
I was very surprised to find out that my seemingly very wealthy friend has huge debts and only manages to keep up with the jones' by having credit cards.
Its a sad reality but we are in a generation of debt.

Karonher

Poor_Single_lady wrote: »

When you are in debt you feel tired all the time, weary and very defeated. You need help and support and all of that is very good. When you log on you see what other people are saying, how they are dealing with it and what they are struggling with. This all does help.

But I think we might have to agree to disagree about the sentance "im not in debt". I don't find this helpful to read on this forum for people who are in debt. maybe its because it appears in isolation and people don't always clarify but for whatever reason I don't think its helpful. Well done on not being in debt, that's fantastic for you.

Its sort of like saying i don't have that problem but this is what i think. Well I love to hear what you think but I think I listen more if you don't explicitly say that this isn't a problem you suffer from

Just because someone is no longer in debt it does not mean they have not been and they will able to remember what it was like.

If the only people posting were those still in debt, there could be a lot of valuable posts missing. How many people have been given fresh hope when reading that someone who was at one time in a similar position to them had got out or was getting out of debt?

Rather than just thinking "that's fantastic for you" why not think "that will be me?"

Smodlet

Farel01 wrote: »

Hi OP,

I think we're in a pretty similar situation, we're in about 28K of unsecured CC debt (all at 0%), and 4 months away from paying off a 10K loan. We earn about 100K combined and I'm chucking about £1500 at it every month. Hoping to get 75% cleared at least before I have to remortgage in 20 months.

For me what makes it 'acceptable' is that the debt was incrued to make our house habitable and we have already added about 100K in value to it, spending around 50K. And all the people who say debt is disgusting, yada yada yada, that's not always the case. i have always been better at paying back than saving, bad of me perhaps, but it works for me. As long as I have a plan and stick to it I'm not going to make myself sick with worry and I'm also not going to live on a tiny budget for it (got the last home improvement to do which I'm paying for with this year's bonus). *ducks down*

I tend to be fairly open about my finances with a few good friends and half are in a similar situation, the other half have massive savings + mortgage free, go figure. Sometimes opening up first about finances with friends/family will make others open about it as well. You'd be surprised how many are in a similar situation or have been at some point.

Well done, you. It sounds as if none of your debt was the avoidable kind and you have added double the value of what you have spent. I know about uninhabitable houses; sometimes they are all some people can afford, others choose to invest in them and do as you have done. My problem is with those who fail to take responsibility for their own spending then attempt to blame anyone but themselves for their debts. It does not sound as if this applies to you at all. Debt in itself is not shameful; needless debt that is "the banks' fault", imho, is.

Well done to you, too, Sourcrates and thank you for all the stellar advice you have given me, knowingly or otherwise. Cheers! :beer:

SalemD

You don't have to look that far to see how much credit pervades our culture.
Why are there so many credit card companies?
If you are looking to buy a new car, all the major car manufacturers offer finance plans?
Why are there companys that help with debt problems offering IVAs, DMPS, and bankruptcies.

Debt is very common. We live in a debt based economy. Most countries have a high national debt.

For a lot of people it is just a way of life. In the 90s, everybody was spending on credit. Now we have austerity and high consumer debt levels.

Is it rife? I would say the evidence says it is.

Domayne

When I was in debt, I used to love reading peoples debt free diaries and the debt free roll of honor and stalking peoples Statement of Affairs religiously.It kept me focused and made me more determined to one day be one of the ones posting on that board and sharing that I am now debt free.
Now that I am debt free, I still loiter around this site because I don't want to go back in that position I was then.
I really feel that thanks to MSE, I have overhauled my attitude to money and debt. I still have moments where I am dumb with money though. Like going to Edinburgh two weeks ago and blowing £450 on a Xue Wang :rotfl:
But in general, I save a lot more than I spend these days!

Anyway to the original question - I think a lot more people are in debt than they let on, but unfortunately it's still a taboo topic and people feel embarrassed about it, Who wants to admit they have £1000's of debt when they earn a decent salary?

The reason for not talking about savings is taboo as well but more for the reason that once you start talking about how much money you have, You see people who put their hand out for loans and when you say no, It creates tension and you are selfish etc

Smodlet

This thread https://forums.moneysavingexpert.com/discussion/comment/71029672#Comment_71029672 says it all. Credit is not a right and debt is not a competition. To paraphrase, "He/she's got a bigger credit limit than me, it's not fair". Give me strength.

Johnnybeegood, be of good cheer, you are most certainly not alone but I think your attitude to your debts is significantly more responsible than that of some.

zenshi

To be in debt, most people do find it embarrassing. I'm by open about most things and found that when talking about my debt to others that I knew, I was surprised by the amount of them that then opened up and admitted they had a problem. Some were at the same stage some, others majorly struggling. I was then able to help them to get the right advice

lessonlearned

I agree with others here. JOhnny you are not alone.

I have been watching a series on BBC1 called "Right on the Money" It's on in the mornings, I watch it on catch up. It's a bit like this site and there are some very good money management tips. What does come across in most cases is the level of debt people are dealing with.

I think there are a lot of people out there with high levels of debt, it's just something most people don't talk about, either through fear or shame.

I have been in debt several times. When I was young it as through sheer stupidity. The last time was due to my husband's terminal illness which was when I found "the blessed Martin Lewis".

You have come to the right place and with your positivity and can do attitude you will get debt free.

Well done for facing up to reality - always a good starting place - it's onwards and upwards from now on.:D

Even though I'm now debt free I still read a number of financial blogs and am always keen to learn new ways and ideas to help me make the most of my money. I still keep a spending diary and a close eye on my finances.

I now treat my finances as I would run a business, keeping a tight rein on cash flow. I still use credit but I use it wisely, watching interest rates and never missing deadlines. I switch current accounts and energy providers, I shop around and haggle for the best deals.

I am a reformed character. I could still spend for England given half the chance......but I'm definitely a lot more savvy than I used to be. :rotfl:

Smodlet

Ace post, LL, yep, "St. Martin of MSE".

Sanctioned_Parts_List

To answer an earlier question, Smodlet, today was 38C and 85% humidity, capped off by a cracking thunderstorm. I've just come back in from watching it for a bit - I love storms Just about touches 40C on a good day.

Anyway, I saw this article and thought it germane. (Or rather, what I thought is unprintable on a family forum). From the look of things, these boards will be busy for a while yet...