Amazing debt, where does it come from

lazer-zxr

Once the LBM has happened, once you live more efficiently, does anyone else wonder how on earth the debt arose?

I'm recovering from £59k of debt.
Paying off circa £1700k per month now.

I know I've learned so many lessons from these boards, and had a total chainge of mindset, but surely, going from a deficit causing £59k to surplus of £1700 per month ... it just seems bonkers.... how on earth did I get in debt?

sourcrates

The usual cycle goes something like this :

(1) get credit card, spend up to limit, get another credit card, also spend up to limit, get a catalogue account, spend to limit, get a loan, spend on stuff you dont need.

(2) get consolidation loan, then repeat (1) again.

(3) repeat (2) then repeat (1) and so on and so on.................

before you know it, your nearly 60 grand down.

The sad thing is this cycle is repeated time and time again by people on this forum, inc myself once, instead of seeking debt help before attempting consolidation.

TwinMummy

I've followed that pattern so many times. I wish I had had my LBM in march last year (another consolidation loan) and things could be so different right now. *sigh*

another_casualty

Good question laser .
This thread could run somewhat .
My situation ? : having overdraft limit of £1500 . Then getting loans + credit card. Trouble is, wages until my last employer never went near £1500 coming in . Then the usual stuff happens: remortgage 3 times because of positive equity in my flat .
You were encouraged to do daft things in the mid 2000's. Shouldn't have listened.
You could call that consolidation as well. Could only pay minimum on credit cards, and then BANG!! £25,000 debt

MrsTinks

Oh let's see... splitting with ex when I was quite young, not long having bought a house - put everything into said house, ex gutted house (fixer upper) so when we split it was worthless. Bought me out for a fraction of what I paid in but I couldn't get a mortgage as no guarantor. Left with debt, moved into tiny studio flat, barely affording rent and bills, expensive commute, car goes pop, all savings gone so have to borrow to replace. Few more ups and downs - eventually back in same flat (ha!) still barely affording it - now redundant, need to move so part of redundancy goes to that... need newer car as this one is knackered... consolidate... finally earning more so now I should be able to breathe right? I'll get a credit card but I'll pay it off in full each month... honest guv!
Finally grow up and realize that income>outgoings is the right life formula... DOH Find bloke, spend 3 years teaching him that before marrying the !!!!!! lol - we're nearly debt free though! :rotfl:

zippygeorgeandben

I don't even know where to start. Teenage years with all those store cards. House of Fraser, Debenhams, Alders (RIP), Harvey Nics etc.. I remember being around 20 and seeing my advisor in HSBC who said my behaviour rating was terrible as a borrower. Years of being stringent followed, my behaviour score went from v.poor to excellent. Fifteen years later, I've gone through redundancy, complete change of career with £16k student debt. I've now got £17k debt but I've been budgeting since September, really want to pay it off quickly though!