Is anyone NOT worried about their debts

midlander81

I worried a lot at the start of my debt free journey, however this eased off as soon as i got into a routine with my payment plan. I think that it takes 3- months before you realise that your plan is achievable.

Towards the end of my my debt payments I barely thought about it. The direct debits didn't bother me any more than my mortgage or phone bill did.

Good luck

January2015

I worried about our debt until we faced up to it in January 2015. Since entering a DMP (now self managing) I haven't worried at all. I've really enjoyed our DMP journey so far, and far from looking at our debt negatively I now look at the reducing debt balance with glee

[Deleted User]

Not worried about debt, my feelings changed when someone close to me had a personal and life changing accident, Dad said he had cancer just before 60, you start to wonder how seriously life should be taken.

I did receive a letter today and thought for a minute or 2 gosh I may be on the line here but then have to remember all the well paid jobs came with a reason/date of expiry and after a year of all the temporary jobs the 'system' threw my way, there was one line I was rather pleased to see again and simply get back if I was honest and as daft as it sounds least I'll never put another person's life in danger and have to live with that in order that I think I can put my head up. ie if I were to work a 10 or 12 hour shift before driving home per regular basis nor could I imagine arriving home after a 10 hour shift and finding my aging pet dead for the last 9 hours. I think that would kill me over any shame over what I earnt or didn't/what my status was or wasn't. It can be gone in a flash.

Hopeless_Case

Nothing makes me feel sick and unable to sleep as much as not knowing how I'm going to be able to pay for something, I think it's a primal fear of public shame and exposure, and that's partly how we've ended up where we are, as I've looked for a quick fix, eg credit card borrowing or adding to our mortgage instead of taking a cooler look for a more sensible way.

Now we've faced up to everything and got our credit cards on 0% and have a plan to repay them, and I'm looking for little extra ways to chip away, like cashback, and making a challenge out of saving money, I'm enjoying it and feeling in control.

We run our own business and things are very slow at the moment, partly August and partly I think people are holding their breath (and their money) waiting to see what's going to happen about Brexit in October, and the thought of not being able to pay bills there does make me feel sick, and I just have to keep rehearsing all of the options we have in case of full-on recession, and talk myself down!

It is awful but facing up to it and finding a way through it is definitely the best option

enthusiasticsaver

karencks wrote: »

Hi,

Is anyone in a high level of debt ( like me) and not worried about it?

I need to do some work on how I am approaching this mentally so I would be keen to know how others avoid feeling stressed. I feel like I have the words 'I am in dent' tattooed to my forehead at the moment!

Most people feel less stressed about debt when they know they have a plan to repay it. Unfortunately complacency around high debt generally leads to it increasing gradually over time until they get to a crunch point where it needs dealing with - ie redundancy, loss of decent promotional rates due to high debt to income ratios, death, sickness, maternity leave or retirement. Then dealing with it is unavoidable. So some stress is actually desirable to give people the kick start to sort it out.

CakeCrusader wrote: »

It depends on your circumstances. A high level of debt to some may be 3k, but that may be a drop in the ocean to others. Some may be really struggling to pay off 3k of debt and it may keep them awake, others may have to work a little more but it's not really a problem. It depends on your debt to income ratio. It might help if you posted a SOA so people can take a look to see if you can make any savings etc?

Good advice.

Hopeless_Case wrote: »

Nothing makes me feel sick and unable to sleep as much as not knowing how I'm going to be able to pay for something, I think it's a primal fear of public shame and exposure, and that's partly how we've ended up where we are, as I've looked for a quick fix, eg credit card borrowing or adding to our mortgage instead of taking a cooler look for a more sensible way.

Now we've faced up to everything and got our credit cards on 0% and have a plan to repay them, and I'm looking for little extra ways to chip away, like cashback, and making a challenge out of saving money, I'm enjoying it and feeling in control.

We run our own business and things are very slow at the moment, partly August and partly I think people are holding their breath (and their money) waiting to see what's going to happen about Brexit in October, and the thought of not being able to pay bills there does make me feel sick, and I just have to keep rehearsing all of the options we have in case of full-on recession, and talk myself down!

It is awful but facing up to it and finding a way through it is definitely the best option

Well done for facing it and I think being in control or feeling like you are in control is the key to removing stress around debt.

System

People are probably confused rather than concerned about your debt if you are going around with 'dent' on your forehead :-)

Smellyonion

sourcrates wrote: »

Its not the banks money either, most of the money we use comes in digital form, as numbers we see on our bank statements, this money is created by private banks such as Nat west and HSBC when they make loans.

They create it simply by typing numbers into a computer, some might call this magic.

Sounds implausible ? well the Bank of England have confirmed whenever a bank makes a loan, it creates a deposit in the borrowers bank account, thus creating new money.

So the loans, balances on credit cards, whatever debts we have, only really exist in digital format, and as the banks have not loaned their own money, they can afford to take the hit when we cannot repay our debts to them.


You, however, are still chased for every penny of this non existent debt, first by the bank, then by the debt collector, people worry themselves sick, but why should they ?
This money only exists on paper, and there are plenty of solutions for people in debt to use to deal with the matter, all they have to do is ask for help, and the help is there.

All in all we have a very dysfunctional banking system in this country, and reform is long overdue.

Banks do not create money. Every deposit they make as a loan is both an asset for the bank and a liability.


They haven't loaned "money" per se but liability - hence the financial crash in 2008. It still exists and there are still consequences when it isn't paid.


If banks could create money without liability you would end up with hyper inflation and the economy would crumble.

macman

karencks wrote: »

Hi,

Is anyone in a high level of debt ( like me) and not worried about it?

I need to do some work on how I am approaching this mentally so I would be keen to know how others avoid feeling stressed. I feel like I have the words 'I am in dent' tattooed to my forehead at the moment!

If your theory is correct, imagine what Philip Hammond feels like when he wakes up in the morning. He's responsible for servicing a national debt of £1.78 trillion, for which the current interest payable is £48 billion p.a. Kind of puts the odd £50K debt in perspective...

sourcrates

Smellyonion wrote: »

Banks do not create money. Every deposit they make as a loan is both an asset for the bank and a liability.


They haven't loaned "money" per se but liability - hence the financial crash in 2008. It still exists and there are still consequences when it isn't paid.


If banks could create money without liability you would end up with hyper inflation and the economy would crumble.

Google fractional reserve banking.

Smellyonion

sourcrates wrote: »

Google fractional reserve banking.

I know what you are referring to but its not quite in the same light that you portrayed it.


Yes it technically doesn't exist. Its made up money. But it exists as a liability on the bank, almost a piece of the bank. Otherwise, you will get hyper inflation and the world breaks.


Take this example (I know very crude).


MSE Bank has £100 in deposits and working capital. It lends someone £1,000 by creating it into their account. Charged at 3% (theyre a safe borrower).


Bank now has a liability of £1,000 and an asset of £1,030.... £30 profit from thin air providing the person doesn't default. If the person does, bank collapses.


This on a wider scale is how banks operate. Different risks attract different rates. Since the money technically doesn't exist, the bank would fail if there is mass withdrawals (northern rock) or mass defaults.


Its not quite victimless if defaults occur.