How debt-adverse are you?

enthusiasticsaver

I am extremely debt averse and always have been. This is due to three reasons.

My dad was very debt averse and a good businessman. He instilled a healthy respect in me for budgeting from a young age. I have tried to carry this on with my own daughters.

I worked for a high street bank in the late 70s when debt was seen as being bad and lending tightly controlled. Staff were told going overdrawn or mismanaging finances was a disciplinary offence.

I worked as a mortgage arrears/debt counsellor for a bank in the 80s and 90s and saw many people driven to despair, losing their homes. There is nothing like having to take someones keys away from them when they can no longer pay their mortgage to realise that unaffordable debt always ends badly. Empathising with people in awful debt made me determined never to go there if at all possible.

Avoiding debt has saved us a fortune in interest over the years, we repaid our mortgage early and pay off our credit card in full each month. We have always saved and consequently had a healthy emergency fund to cope with most eventualities. Some of this is down to luck in that over our working careers we had good job opportunities, no long term sickness or redundancy so I don't kid myself that this was all down to us.

-taff

zippygeorgeandben wrote: »

I've been officially debt free for 9 days now so I'm wondering how I feel about debt..

Congratulations!!

Mnd

We do have credit cards on 0%, and will buy big items on interest free deals, but would be adverse to buying anything on credit that would incur interest.
This was how I was brought up and I don't see it changing now.

[Deleted User]

I almost knew the answers i'd read when I saw this threads title !


I think it fair to say that many of us will answer the same way - adverse because we personally have had negative experiences with it in the past, mine was a very long time ago but oh do the effects have an impact on you ….. I never want to relive those days !

[Deleted User]

zippygeorgeandben wrote: »

I've been officially debt free for 9 days now so I'm wondering how I feel about debt. Everyone reacts differently. Unlike other posters, unless there is a change of circumstances, I will always have a surplus at the end of the month. All my monthly outgoings which must happen (i.e. rent/tax/bills) adds up to just 33% of my salary, meaning I will have a fairly healthy surplus. However, will my mental attitude to money now change? i.e. I have more money to hand so I will spend more money accordingly.
I do think though that you have a responsibility to save for a change of circumstances/emergency and not blame the change in circumstances for then getting into debt.

Absolutely inspirational.
I remember your very first post and have the utmost respect for you.

Potbellypig

I try to be, but it never works out. Clear my credit cards, spend on them again, clear them, spend on them...



I also set out a good budget, but it usually goes to pot before month end.



But I'm only currently £800 in credit card debt with a total of £13,500 available to me, with the fortunate position of having a decent job so I could really clear it when I want. In answer to your question though, I'm just not very good with money.

zippygeorgeandben

-taff wrote: »

Congratulations!!

Thanks -taff

zippygeorgeandben

Catsacor wrote: »

Absolutely inspirational.
I remember your very first post and have the utmost respect for you.

That means a lot. Thanks.