Debt free and staying that way while I re-evaluate life and keep blood sugar levels down

QueenJess

enthusiasticsaver said:

Do people use credit cards rather than debit for cash back etc or because they don’t have to think about how much is in the account and is it enough to cover the spend? In other words buying time to work out if it is affordable? 

Well it certainly is harder to keep track when you have a current account, DD’s coming out at various times and then a CC (and CC’s take a few days to show up spending). It’s more difficult to work out how much money you actually have. If it comes off a debit card you can see immediately.

FreetodoasIlike

Loved your story about Mr Jenkins, the bank manager. It made me laugh. I remember I had to make an appointment to see my local branch manager as I had to have a current account for my salary to be paid in - it was like seeing the headmaster at school! He was quite stern and looked quite old (although he probably would only be around 40, but he seemed old to me at 18). He ceremoniously gave me a cheque book and taught me how to write a cheque - i.e write “pay cash” to myself to withdraw my money! I remember I wasn’t allowed a debit card - that came later.

PollyWollyDoodle

  This is an interesting debate, I was born in 1960. My parents had a mortgage, and no debt, and I learned from an early age that you saved up for things.  We didn’t have much money and I learned to budget early. I even managed to save money from my student grant during my first year at university!

I’ve never had significant debt, other than a mortgage or car loan. I use a credit card for most purchases because of the vouchers and the protection, but pay it off in full each month - I generally know how much I can afford to spend, so it doesn’t matter if it doesn’t show up on the bill straight away. 

My niece, born in 1987, has no fear of debt. She of course had a student loan, and she said to me once “when you already owe thousands when you start work, it doesn’t seem a big deal to borrow more money”. I think that has probably had a huge influence on more recent generations, who treat credit as the norm. 

I can remember interviews with the bank manager as a student, and also being refused credit in the 1980s (I think it was to buy a washing machine or similar) because my husband wasn’t with me to sign the forms!  I wouldn’t want to go back to those days, but I wonder if it is just too easy to get credit now.

jackieblack

Humdinger1 said:

 (I'm on the cusp of reversing type 2 diabetes) 

This bit jumped out at me as I was reading and I just wanted to wish you well in your endeavours. I reversed mine (I got my HbA1c of 94 down to 34) 3 months after diagnosis and am now officially ‘in remission’ - it was hard, particularly the first 3 months, but the results are so worth it 🙂  

Humdinger1

jackieblack said:

Humdinger1 said:

 (I'm on the cusp of reversing type 2 diabetes) 

This bit jumped out at me as I was reading and I just wanted to wish you well in your endeavours. I reversed mine (I got my HbA1c of 94 down to 34) 3 months after diagnosis and am now officially ‘in remission’ - it was hard, particularly the first 3 months, but the results are so worth it 🙂  

Thanks so much: 120 down to 45 here.  I must say, not having a sweet tooth (I happily gum down unsweetened rhubarb!) really helps.  I've also discovered the world beyond carbs. I hope in a few days' time my results will sit firmly in the remission bracket; currently pre-diabetic.  Really appreciate your encouragement and comments.  Love Humdinger xx 

jackieblack

Totally with you on the carbs 👍🏻 

All the best 🤞🏻

Sun_Addict

Finally you have a diary 🥳 You’ve made so many encouraging comments on mine and other diaries I’m subscribing to cheer you on. 

enthusiasticsaver

QueenJess said:

enthusiasticsaver said:

Do people use credit cards rather than debit for cash back etc or because they don’t have to think about how much is in the account and is it enough to cover the spend? In other words buying time to work out if it is affordable? 

Well it certainly is harder to keep track when you have a current account, DD’s coming out at various times and then a CC (and CC’s take a few days to show up spending). It’s more difficult to work out how much money you actually have. If it comes off a debit card you can see immediately.

I am not sure about other bank accounts but most digital banks these days allow you to separate your current account into spaces.  Starling certainly does as does Monzo I think. When our pensions go in we transfer enough into the bills space on our starling account to cover all direct debits and bills for the month and they all come out of that space.  Starling warns you if there is not enough in there the day before the direct debit is due.  We also pay money into dedicated pots for christmas, car expenses and house expenses and into our personal accounts and joint savings.  What is left in our current account to pay for food, fuel and entertainment is therefore accurate to the penny even showing pending spends. 

Humdinger1

Sun_Addict said:

Finally you have a diary 🥳 You’ve made so many encouraging comments on mine and other diaries I’m subscribing to cheer you on. 

Thanks @Sun_Addict I appreciate it! The agony I've been through is nothing compared with the experiences of many here but if I can add to the stock of wisdom and maybe raise a laugh, then I'm putting it to good use.  That's therapeutic and it also raises the voice of the realistic rather than the delusions pushed by purveyors of debt.  Soapbox away...

Humdinger1

So how did I get £140k into the weeds?! A tiny bit of bad luck but mostly magical thinking and an 'I'll show them' mentality.  Have been self employed for years. Ran a big trade event as main contractor, then lost the contract.   I set up some smaller events in the sector; lots of people said they'd join the events but didn't, despite quite expensive independent research beforehand.  I should have been more realistic and awake to the fact that good intentions don't always materialise.  Extended the events so doubled my exposure,  then 2 big cheques bounced as 2 clients went bust.  I decided not to go bankrupt as I was a big client for many small businesses; I called them all (the week before my wedding to my now DH) and told them they would all get their money but slower than we'd all planned.  There were 27 companies that could have taken me to court but none of them did and I paid off every red cent over the next few years, prioritising payments to the ones that needed the money most.  A hard lesson but it did teach me: will power alone isn't enough, you have to have a realistic plan; and only spend money and sign contracts on the basis of cleared funds; yes, actual cash. I was maxed out on personal credit cards and owed the bank thousands.  I didn't even dare to work out how much I owed till I was in the last £25k.  I aim to work for years to come; not full-time year-round but after that, I always want to be generating some money though not to the exclusion of relationships, fun and health.   Onwards and upwards love Humdinger xx