What did you do to get into debt?

Lolly424

Got a loan for a family member as we were on the verge of losing the family home. Then moved out due to emotional abuse whilst still paying off the loan, got a credit card to buy stuff for my flat as I hadn't saved (it was a rushed move). Took a pay cut a work to keep my job, couldn't afford to pay debt plus keep flat so ended up on a DMP and back into the emotionally abusive home.

jubilee14

Lolly424 wrote: »

Got a loan for a family member as we were on the verge of losing the family home. Then moved out due to emotional abuse whilst still paying off the loan, got a credit card to buy stuff for my flat as I hadn't saved (it was a rushed move). Took a pay cut a work to keep my job, couldn't afford to pay debt plus keep flat so ended up on a DMP and back into the emotionally abusive home.

Hi Lolly424, this is a great place for support of whatever kind so please, if your needing to vent or looking for advice know its here. Generally nearly all the posters on here are supportive which is sometimes what you need.

[Deleted User]

It all started when I was 18 and got some junk mail in the post addressed to me from Capital One offering me a credit card. Why not I thought, so filled it out and popped it in the post. Week or so later card arrived with £200 limit. Before that I had never even thought about wanting or getting a card as I was working full time and living at home so had plenty of disposable income.

After I got the Capital One card, I then applied to Natwest a couple of months later and they gave me a card with £700. A few months after that I was in my bank (LloydsTSB) when the counter assistant tried to sell me a credit card. Ten minutes later I walked out with a £2K limit and my shiny new card arrived in the post a few days later. Few more months down the line I received junk mail from Barclaycard and what the heck, I applied. Think I got £500 limit on that. A while later I then got a halifax card with £900 limit.

I was spending and buying crap and paying slightly above the minimum payments and I admit at the time it was starting to get out of hand. Then SHTF and I lost my job. Could no longer afford the repayments and everything spiralled out of control. By time I was earning again it was too late and the damage had been done.

DrSpendLittle

Went to uni with no understanding of money management. Got a credit card 'for emergencies'. Used it to book train tickets home in the first semester. Got a student overdraft too. It was ridiculously easy to extend it. Did it fairly regularly. Spent my second year studying abroad and without access to my bank balance.... Came back with a £1200 overdraft. The final two years of my degree I did work part time. But I spent every penny on crap - clothes, going out etc. I opened another credit card too but I can't remember when.

Stayed on to do a Masters and a PhD (luckily I had scholarships for these). Got a consolidation loan during my Masters degree to pay off two credit cards and two overdrafts. BUT I didn't learn to budget...

Met DF and lived his lifestyle on my student budget. Started spending on the credit cards again and eventually racked up even more debt than last time.

Graduated (finally!) and started working. And started spending. On work clothes and work bags and all that crap you convince yourself you need as a 'professional'. The usual lifestyle inflation ensued. Holidays abroad, gym memberships, sports equipment etc etc. Bought a car on PCP.

Didn't involve myself in the finances of the home. DF managed everything and I just gave him a monthly contribution towards the bills. I developed no accountability or responsibility or long term financial radar for daily life. I spent everything I earned.

Continued this for 10 years until last August when I suddenly realised I was earning a good salary but was in the most debt I'd evert been in. Decided enough was enough and joined MSE.

15 months later and I've paid over £9k off my debts. Only £3,999.99 to go!

ThatKiss

Fell into the trap of using interest-free balance transfers as a "cheap" way to buy a car, but without the structure of a set payment plan, the debt never seemed to reduce.

Eventually sorted that out but then bought a flat on a pretty quick-sharp schedule without being wholly financially set to do so. Spent the first year living the high life (outside my means!) with a couple of financial setbacks in that period as well, and found myself starting to spiral into the debt abyss.

Had a lightbulb moment around a year ago and it's been onwards and upwards since - although I've still the bulk of the debt to address, things are moving in the right direction.

Slowdown

enthusiasticsaver wrote: »

I think financial education should be taught more in schools but personally I think parents have a role to play too. My dad was anti credit like many of his generation but was a very successful businessman and I respected him so developed a healthy fear of credit myself except for buying property. They taught me to save from a young age, 7 or 8 and we did the same with our daughters.

I was hoping someone would eventually mention the responsibility of the parents in the financial education of their children. I agree that financial education would be a sensible idea in schools but a lesson every so often at school is not nearly as influential as day to day financial education from home. Obviously there are families out there unable to show their children a sensible way to budget and how to stay out of debt and school would be their primary influence but given that schools now seem to be responsible for teaching children about sex, relationships, citizenship, politics, social skills, religion, societal values as well as the academic subjects, I think parents should step up to the mark and become responsible.

mbaske

Currently in UNI needed some emergency tuition so got a Wonga loan of £500 (50 left to pay) for that. Needed a deposit for a place quickly so took a £1000 (745 left to pay) loan for that in August. Racked up PayPal credit of 270. And currently in arrears of £250 for my phone bill (Thought I needed a nice new iPhone 8).

Learning my lesson hopefully

Spriggan

My father died, and I couldn't deal with it. I went out every night, and stopped looking after myself. It was all just about blocking things out. Before I knew it I was £10k in debt and a total mess. It's taken years, and some very good luck, to claw myself out of it. But hopefully I'm wiser, and I know myself much better now.