What is the difference between happiness and misery?

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Annual income twenty pounds, annual expenditure nineteen nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. - Charles Dickens

There have been a number of posts here recently querying how people can possibly get in to so much debt. I have suggested on several occaisions that it is rarely flagrant overspending, and more often due to a change in circumstances, such as divorce, redundancy, birth, ill health etc.

However I thought it would be interesting to calculate how much you would have to overspend per day to reach a five figure debt in ten years.

The answer is One Pound.

This assumes a monthly interest rate of 1.5% which is not uncommon on many credit cards over the last decade.

I can now see how my debt of £50k reached over twenty years could be the result of an overspend of just £1 per day.
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  • tinalives
    tinalives Posts: 903 Forumite
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    Good observation - Disturbing isn't it!
  • delboypass
    delboypass Posts: 229 Forumite
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    Can you post your calculations please.
  • ffs
    ffs Posts: 292 Forumite
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    delboypass wrote:
    Can you post your calculations please.

    Calculation assumes 30.42 is added to capital borrowed each month (one pound per day), and compound interest of 1.5% is applied to the total debt each month:

    Year Debt
    One 397
    Two 871
    Three 1,438
    Four 2,116
    Five 2,927
    Six 3,896
    Seven 5,054
    Eight 6,440
    Nine 8,096
    Ten 10,077
    Eleven 12,445
    Twelve 15,276
    Thirteen 18,660
    Fourteen 22,707
    Fifteen 27,546
    Sixteen 33,331
    Seventeen 40,248
    Eighteen 48,518
    Nineteen 58,406
    Twenty 70,228
  • Turning_into_scrooge
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    !!!!!! wrote:
    Annual income twenty pounds, annual expenditure nineteen nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery. - Charles Dickens

    There have been a number of posts here recently querying how people can possibly get in to so much debt. I have suggested on several occaisions that it is rarely flagrant overspending, and more often due to a change in circumstances, such as divorce, redundancy, birth, ill health etc.

    However I thought it would be interesting to calculate how much you would have to overspend per day to reach a five figure debt in ten years.

    The answer is One Pound.

    This assumes a monthly interest rate of 1.5% which is not uncommon on many credit cards over the last decade.

    I can now see how my debt of £50k reached over twenty years could be the result of an overspend of just £1 per day.

    Frightening isn't it :eek: I personnaly am happier now that i'm on a DMP than i was before. Strange thing is I now have control of my finances, i love having just a basic cash card account with no credit faculties, I have a brilliant relationship and basically to a certain point peace of mind. I don't worry about money any more. Sometimes we have to come down a level in order to obtain a grounding. I certainly did and from that point my life turned around for the better :T
  • bonnie_2
    bonnie_2 Posts: 1,463 Forumite
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    having got my debt down to £400 i am now very careful with money so much so that my doctor thinks i have ocd.i am obssessed with writing lists and budgets and checking the atm balance.i have weekly lists, monthly and yearly lists i wish my husband was the same he still owes who knows what.i dont even shop on the internet any more and get a real buzz from handing over cash at the till,even though they give you a funny look for it, eveyone seems to pay by card now.
  • Turning_into_scrooge
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    bonnie wrote:
    having got my debt down to £400 i am now very careful with money so much so that my doctor thinks i have ocd.

    I'm not even half way there and i've got it too lol :D i will spend an hour a day checking my bank balance, downloading statements, etc. i have my accounts on MS Money up to the end of the year so i can see if i'm going to hit a black spot. I also have an account fo the money i have in my purse fo day to day spending which i have to balance off daily if i spend even 1p :eek: . I am definitely obsesed, if i haven't had time -which is extreamly unusual - to do my accounts i cannot go to sleep untill i have done it, it wont let me rest :eek: . Definitely obsessed lol rather be obsessed though than complaicent(sp?) :rotfl:
  • tinalives
    tinalives Posts: 903 Forumite
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    I'm not even half way there and i've got it too lol :D i will spend an hour a day checking my bank balance, downloading statements, etc. i have my accounts on MS Money up to the end of the year so i can see if i'm going to hit a black spot. I also have an account fo the money i have in my purse fo day to day spending which i have to balance off daily if i spend even 1p :eek: . I am definitely obsesed, if i haven't had time -which is extreamly unusual - to do my accounts i cannot go to sleep untill i have done it, it wont let me rest :eek: . Definitely obsessed lol rather be obsessed though than complaicent(sp?) :rotfl:


    LOL!!! You sound EXACTLY like me!!!
  • roversbabe
    roversbabe Posts: 1,008 Forumite
    Debt-free and Proud! Mortgage-free Glee!
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    And me !!

    thanks to the advice I've read on this site I'll be debt free next December (joint & my own)

    Thanks all
    Official DFW Nerd Club - Member no. 027

    Debt free: 6th April 06 :T Proud to have dealt with my debts
  • Malestrom
    Malestrom Posts: 983 Forumite
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    You people need to get out more! :p :rotfl:
    He huihuinga taangata he pukenga whakaaro – A meeting of people; a wellspring of ideas (Maori proverb)
  • tinalives
    tinalives Posts: 903 Forumite
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    You're not wrong!! LOL!
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