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  • FIRST POST
    Justindebt
    How did you get into this debt?
    • #1
    • 15th Jun 05, 6:31 PM
    How did you get into this debt? 15th Jun 05 at 6:31 PM
    OK....I was wondering how we all came to be in this position.

    I have never spent more than 200 on an item and charged it to a credit card.

    Never even paid for a holiday on one.

    Plane fares or hotels I have charged up.....restaurants and the odd suit.

    The vast.....no, overwhelming..... majority of my damage is due to gambling.

    I was wondering how the rest of you were dragged into the debt trap.
    Last edited by MSE Andrea; 23-06-2005 at 9:32 AM.
Page 1
  • LearningToSave.
    • #2
    • 15th Jun 05, 6:49 PM
    • #2
    • 15th Jun 05, 6:49 PM
    interesting question.
    mine started with a loan to florida for a holiday in 1999(was cheap deal so wanted to do rather than save-big mistake) of course needed new clothes,used whilst on hols.
    never paid it off when back as planned.....carried on using for bits and bobs......then met my hubby who was equally bad and we consolidated all debts into one loan......never quite paid everything off though then had a baby so no expense spared.......and so on.....just living beyond our means really......i think its too easy to get credit and get into debt.
  • nelly
    • #3
    • 15th Jun 05, 7:15 PM
    • #3
    • 15th Jun 05, 7:15 PM
    Although Im back to zero debt a trip to florida hit us hard too.

    Its down to discipline (sp?) really.
  • youngandreckless
    • #4
    • 15th Jun 05, 7:47 PM
    • #4
    • 15th Jun 05, 7:47 PM
    A while back I started to work less hours to do a college course, the drop in wage didn't mean that I spent less. Then overdraft got big, so I got a loan to pay it off and increased my hours again which helped.
    Then was made redundant, didn't use the money for any decent purpose, just bought stuff with it. New job meant I earnt less, but still my spending didn't reflect this. I can't think of a single thing that cost a great deal, just no discipline. I love shopping and had no control - if I wanted it I bought it.
    Several loan extensions, a brief credit card moment (thankfully I had the sense to cut it up and pay it off) and yet more overdraft (now paid off) and here I am.
    Quite sad when I think about it!
    • davidcampbell
    • By davidcampbell 15th Jun 05, 8:05 PM
    • 424 Posts
    • 48 Thanks
    davidcampbell
    • #5
    • 15th Jun 05, 8:05 PM
    • #5
    • 15th Jun 05, 8:05 PM
    just was a bit reckless as a student. going out every night. im not even a big drinker, it was spending money on taxis home really that made me skint!

    also, sounds a bit dim but i didnt fully understand how credit card debt works. thought "grace period" applied to new purchases even when carrying a balnace. didnt realise that if i didnt clear baalnce and i buy something it starts accrugin interest straightaway.

    kinda convinced myself that because of grace period my debt wasnt getting any bigger. it was.

    rearrange ...... head, sand, buried, in



    after then when i finished uni i moved out of mum and dads even though i couldnt really afford it.

    took out a loan to repay cc debt accumulated during uni and promptly ran the debt up again because was convinced i had it under control.

    wasnt on electoral roll at time so got a shocking interest rate.

    few years ago realised things have to change or i would still be renting (or worse, back at m+d's) when i was 30. now i have a clear savings plan to provide for myself for my future ... all thanks to MSE

    mortgage is on its way in the next year or two once have a wee deposit built up (dont agree with 100% mortgages) and then i can really set about making things happen for me.



    DC
  • Eliza252
    • #6
    • 15th Jun 05, 8:23 PM
    • #6
    • 15th Jun 05, 8:23 PM
    My undergraduate degree resulted in my debts - my loan didnt even cover my rent, let alone my fees - which i payed myself. I worked stupid hours on top of my degree programme just to keep my head above water - makes me angry when people generalise about all students being lay-a-bouts - grrrrr...
    I've made my debts bite-size too depressing to look at all at once so am handling them one at a time - first up Graduate Loan 1720 paid off! only 280 to go!!!
    Money to raise for tuition fees: 3000
    When you get to the end of your rope, tie a knot and hang on!!
  • bonnie
    • #7
    • 15th Jun 05, 8:38 PM
    • #7
    • 15th Jun 05, 8:38 PM
    i was a single parent on benifit too scared to have debt then i met my husband,who came with a car loan and 3 cards.we had a drop in income when we moved into together sold car to pay of debts then he gave up his job and had to wait months for dole we only had child benifit left to live on and a 3 month old and 4 year old no tax credits then.so we used credit cards to live on,then he got a job low pay and i had to go to work cleaning so we got a consolidation loan but ran up the cards again cos we couldnt live after paying loan then another c loan run up again classic story ran up debts again then crunch time got halifax and hsbc c loan then car went bang so had to get a car loan the he said soa it may as well get a computer as well.then one day it all come crashing down as it does when you cant borrow any more went to cab and started a dmp.but scrapped that in january through you guys advice and have now paid 5 creditors over got 5 more to go which should be gone in feb,car finishes in june,computer in october,but halifax loan in 2007.never again i have well and truly learnt my lesson i am spending 1000 a month in debt repayment just think what i could do with it.
    • James240
    • By James240 15th Jun 05, 8:52 PM
    • 15,616 Posts
    • 9,739 Thanks
    James240
    • #8
    • 15th Jun 05, 8:52 PM
    • #8
    • 15th Jun 05, 8:52 PM
    i basically ended up in my situation due to the fact i had a car loan with an end payment on it which was 3500, at the end of the loan i put that on my credit card, and then continued spending and going out pubbing/clubbing way beyond my means sheance now why i have a over 12,000 pound outstanding on a loan. Ive no one else to blame except my self
    Matched Betting Winnings: ?????.?? Officially Debt Free!!! Official DFW Nerd 007 Ah Ha! There you are Ms 240
  • shrek101
    • #9
    • 15th Jun 05, 9:01 PM
    • #9
    • 15th Jun 05, 9:01 PM
    I got into about 5,00 in debt over many years, mainly because I had trouble at work and got into the spending habit of buying pc bits and pieces, surprising how much you can accrue in a short spell of time.

    I lost my job through ill health because of work related problems. Got some money from work as retirement and paid most of the credit card off.

    I still kept adding more to card as a short sighted way of getting me off depression. That didn't work and was only a short sighted release from the termoils of illness.

    I got half of my debt paid off the last year, due to me managing to get it on 0% interest for 9 months, now got 12 months 0% free and hope to get most paid off once the 0% rate has finished if not I get another o% interest free if I can. I managed to control most of my spending habits, although I do get treats but pay this off by debit card which is like cash.

    Only thing people must do is set up a direct debit for paying off your cards so you don't get penalised for missed payments.
    • no_control
    • By no_control 15th Jun 05, 9:56 PM
    • 128 Posts
    • 239 Thanks
    no_control
    I haven't posted before but I've been reading the boards for a long time and the help and support you all give each other is brilliant.

    My debts are mainly due to a 15 year struggle with various eating disorders. The amount of money I must have spent on food, etc is quite scary and awful to think about. I have good phases and during these times I manage to reduce my debts but when I'm going through a bad phase they increase again as I can't stop myself, it's an addiction.

    I'm getting help but it's very hard and I often think I'm never going to be debt free although I try hard to stay positive.

    Good luck to everyone struggling with debts.
  • youngandreckless
    Hi No Control
    Welcome to the board! You're so brave to admit debt and an eating disorder in one post, I hope things are getting better for you. There are loads of cool people on here who know so much and will really help you, keep posting xx
  • ms_london
    Mine started on catalogues when i hit 18, then a small loan, then credit cards, then a bigger loan, store cards & an even bigger loan & going overdrawn on my overdraft with both banks. Eeeeeek!! What i bought, umm, a holiday to Cyprus in 2001, a 400 shopping spree in 2 hours (when i was out of work aswell), going out 3/4 times a week (although im not a big drinker i was just getting taxis everywhere, buying huge rounds etc) - the only thing i have to show for it is a denim jacket from warehouse, seriously!! Oooops!!

    What an idiot I was :0) Still, repaying the debt has made me who i am today & im much happier than when i was spending the money....seriously :0)

    Ms_London
  • Mango
    Mine started when I did my masters - I was very careful during my first degree but I completely overpent while I was doing my MA. The majority went on rent, buying books and other course materials but I wasted loads on ready meals, eating out etc. After I finished I moved to London and deposit for flat, just general stuff like buying work clothes, cooking utensils etc all went on a credit card. Then I got into the London lifestyle - out every night after work, shopping all the time, eating out...I got to the point where my minimum repayments were scaring me so I stupidly took out a loan to pay off my cc and overdraft - but as I was so rubbish at budgeting then the cc & overdraft built up again - aaargh!! It's all getting sorted now though, thanks to MSE and you folks on here
    • Kimberley
    • By Kimberley 16th Jun 05, 11:53 AM
    • 13,401 Posts
    • 20,356 Thanks
    Kimberley
    I think some of the blame for debt has to go to the creditors. When you go into a highstreet shop, you are asked if you want a store card with an instant 500 credit to spend in the shop there and then. Now they do not ask you if you are on benefit, they do not as you if you are financially able to pay the monthly repayments. All they ask for is a signature.. Now surely the creditors should ask for proof of income at least..

    It's all too tempting for single mums on benefit to be given credit to spend in the shops there and then, as you don't think of the consequences until later..

    I went into BHS yesterday and was asked if i wanted their Gold card with an instant 500 credit to spend instantly..They didn't ask if i was working or anything..Of course i said no but it was tempting
    • Squiffy
    • By Squiffy 16th Jun 05, 1:48 PM
    • 173 Posts
    • 54 Thanks
    Squiffy
    Well a number of factors contributed to the situation I'm in, but I got into this debt by not being financially disciplined.

    Back in 1997 I took up IT contracting, earning in excess of 80k per year. As a contractor I took dividends from my company every three months. During this time I got into the habit of spending freely on credit cards and then paying them off at dividend time. As time went on, I found that I wouldn't always pay them off in full. Obviously this was when things started to go wrong. During this period we bought a house, new cars, lots of gadgets, nice holidays - the works.

    In 2000 my wife was due to have our first child and the contract market was quite uncertain (post Y2K and IR35). So I went permie on a reduced income - about 70k. Things were OK. But we'd lost some income, and when our child was born my wifes income reduced and outgoings increased (nursery fees).

    And I was still in the habit of spending freely on the credit cards.

    Then my employer went bust, but luckily my dept was bought by another company and my job was preserved - albeit with a lower salary - the 63k I'm on now.

    And although we had large-ish debts at this time. Probably 35k, it was more than manageable on our combined incomes.

    Until my wife fell pregnant with twins. This caused considerable expense when we found our nice cars couldn't fit THREE child seats in the back. So new cars, new baby equipment, moving to a bigger house...

    But I still didn't acknowledge the problem.

    And so we get to where we are now. Debt of 68k, household income likely to reduce again with my redundancy...
  • fruityslh
    Mine was down to Uni, my hubbys ex-girlfriend took him for a mug, so together we had loads of debt ot begin with, then bought house and getting married and even though we've never been extravagant, it just is so easy just to pay the minimum repayments. Have calculated our debt free date to be July 2007, to pay off 20K worth of credit card debt.
  • lou_martin
    Started off with a loan for a car (when i was learning to drive and hadn't even passed my test) and I'd moved out of home and didn't know how to budget or anything. Lived in a houseful of girls and all we did was go out and get drunk and shop!! Sounds good but i was earning a lot less than everyone else but trying to keep up with them!

    Then came the 'convenience' of a credit card and a job in London, just off Oxford St - SHOPS GALORE! So the spending carried on and the loan got consolidated to pay off the credit card and then I started spending on the credit card again and so the story goes on.... Terribly stupid I know when i look back now but hindsight won't pay the debts off!!

    Like ms_london i've got nothing to show for it all which is the saddest part! All that money down the drain.

    My debt-free date is September 2008.

    Good luck to the rest of you!
  • newfunk
    Mine was a bad divorce which led to business failure I had borrowed 250k from the bank to buy a business and put my house etc up for it...3 years later my wife is having an affair with a friend of mine, she hadnt done the accounts properly......i attempted suicide and she put a knife to my throat in front of my kids....Business collapsed..in total it cost me 350K
    In this trusted place U can erase
    Every tear that ever rolled down your weary face
    All the time U waste in that paper chase
    Is time better spent in these arms of mine
  • lou_martin
    crikey that's an awful story, hope you are well on the way to recovery (in mind and body) now??
    lou_martin

    Debt-free date Sept 2008
  • newfunk
    crikey that's an awful story, hope you are well on the way to recovery (in mind and body) now??
    by lou_martin

    Could be worse, i could still be married to her!!!! At the time it was like the end of the world!! Now, im with a gorgeous loving girl, and starting my own business again, only this time a whole lot wiser..
    In this trusted place U can erase
    Every tear that ever rolled down your weary face
    All the time U waste in that paper chase
    Is time better spent in these arms of mine
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