Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

    How did you get into debt
    • #1
    • 3rd Jul 07, 9:44 AM
    How did you get into debt 3rd Jul 07 at 9:44 AM
    Hi All,

    I was thinking this morning about how I managed to get into so much debt and realised that the following is responsible:

    Had 1 creditcard when met my husband which had about £500 on it, husband was with his Ex and she led a very champagne lifestyle on a lemonade budget (My husband didn't help and just agreed to everything that she wanted to buy).

    However love is a strong feeling and I decided that I loved him debts and all and we took out a consolidation loan to get rid of the credit and sell his flat.
    However it wasn't long before we brought our own house and the debts were run back up again. So I think alot of our debt comes from running up and consolidating and some from shortfalls on car agreements as my husband used to go through cars like I go through hot dinners. We also had over £7000 worth of stuff stolen from our house just before our wedding and the insurance company didn't pay up, so we spent alot replacing things like the computer and the television etc.
    Anyway I realised that all I have to show for my debt are a few nice things in the house (Like the tv and computer).

    So image how angry it made this morning when I went to the post office (to post all my cd's to clear my debts), to hear one awful women going on about how she's refusing to pay her debts cause she can't afford it. I just wanted to grab her (cause I know she doesn't work) and say get on this website and get a part time job, you got yourself into debt take some responsibility for your actions there are other people out there like you and they are doing what they can to clear their debts.

    Anyway just being nosey really and wondered if anyone wanted to share their reasons for getting into debt.


    Last edited by MSE Archna; 03-07-2007 at 7:28 PM.

Page 1
    • Silverbird
    • By Silverbird 3rd Jul 07, 9:51 AM
    • 764 Posts
    • 1,207 Thanks
    • #2
    • 3rd Jul 07, 9:51 AM
    • #2
    • 3rd Jul 07, 9:51 AM
    Cool thread!

    My situation is incredibly similar to yours.

    I had one credit card with about £1,500 on when I met hubby. He had a large amount of debt (still has about £15,000). It didn't bother me, as I loved him to bits.

    We moved out of our parents' homes in April last year ... 180 miles away! I had secured a job before we moved, but hubby hadn't. Unfortunately it took him a long time to get a job and he was applying for anything and everything. During this time I was paying every single bill and expense, my credit card bill and all of hubby's debt repayments. Needless to say I was having to put more and more on my credit card and I used up all my savings (about £3,000 or so).

    Finally hubby got a job, but the damage had been done. Because of the delay in him getting employment we hadn't been able to save what we'd wanted for our wedding in December that year, so I decided to take out a small loan.

    Hubby is contributing about £100 per month as of now towards bills etc and he pays for the petrol. All of the rest of his earnings go to his debt repayments.

    It makes me sick when I hear about people who are defaulting and sitting at home doing nothing about it. I'm not surprised you got mad.

    I must say that despite the gloomy outlook on our debts and the fact that we can't even consider trying for children for a few years because of these debts, I feel so much better for actually doing something about it, however small.
    Last edited by Silverbird; 03-11-2008 at 10:32 AM.
    Thrilled to be DEBT-FREE as of 26.03.10
    Hubby DEBT-FREE as of 27.03.15

    Debt at LBM (June '07): £8189.19
  • taxi73
    • #3
    • 3rd Jul 07, 9:52 AM
    • #3
    • 3rd Jul 07, 9:52 AM
    Hi there,
    Well I got mine in the usual way...consolidated a couple of times while keeping a failing business afloat...have now changed companies and even though I'm off sick and with fantastic advice on here am managing to clear the debt and turned the business around...there was no extravagant living involved or luxury...just a combination of not shopping around for best deals on household bills and shopping and being on a poor firm....nothing exciting
  • rayday2
    • #4
    • 3rd Jul 07, 9:52 AM
    • #4
    • 3rd Jul 07, 9:52 AM
    Well I guess we were bloody stupid! Not from buying read on... I will collect the dunces hat later!

    I divorced my first husband left him with a £120,000 house, all the furniture had to set myself up in rented with literally everying - bar the tumble dryer I took that and he moaned!!! It then came to the financial settlement, he lied on his paperwork so was entitled to free sessions and I had to pay - so I accepted £7k ish after all the years I had worked.

    Away from the session he said he would make it 10k if I bought a house we had seen a house for 60 k so we went for it. He dragged his feet we ended up getting a loan of 8k to pay for fees and deposit. A month after we moved in he presented me with a cheque for 7k.

    Well it didn't pay the loan off and the house needed repairs so we used that money, then somehow we ended up with cc, I already had one to buy all the furniture etc so we could set up home in the first place.

    We were working 5 jobs between us, I got pregnant and was ill our work dropped from 5 to one each and it all caught up with us.

    So I think with all honesty I was very nieve and stupid but I have a fantastic husband (now!) three lovely girls - a house that still needs a lot of work but it will be there when we can afford it and house prices for those fully modernised are now £110k so the foundations to a stable future are there.
  • flis21
    • #5
    • 3rd Jul 07, 9:57 AM
    • #5
    • 3rd Jul 07, 9:57 AM
    Mine started at University. I did work part time, but couldn't work all year as I had to do long work placements as part of my course and it was a 4 year course. Got out of Uni with a £12k student loan, £3k overdraft and about £5k on credit cards. Then couldn't get a job for about 6 months, so more spending on Credit Card. Then hubby (well, he was my fiance then) and I decided to move in together and had to move away from my family to where I could get a job, so more money on household stuff etc. Then we got married, which was the nail in the coffin. Wedding and honeymoon was really expensive, we took on a bit more than we could comfortably afford, then I became ill and had to change to a lower paid job and we could no longer afford all our minimum payments.

    We are now starting to get some of the debts paid off, but we have a long way to go!!
    Sorting my life out to give a better life to my
    2 gorgeous boys
  • dianadors
    • #6
    • 3rd Jul 07, 9:59 AM
    • #6
    • 3rd Jul 07, 9:59 AM
    Not really in too much debt now, but the first time I ever got into debt was the first time I had a really well paid job!!! When I had to stick to a strict budget I was fine, as soon as I had excess cash, I would spend it 3 times over! I also spent to treat myself and family to make up for the stress and time away from my family caused by my well paid job!! Credit cards were my downfall - putting stuff on them, then not paying it off the next month. I never use them at all these days.
    • HairyHandofDartmoor
    • By HairyHandofDartmoor 3rd Jul 07, 10:09 AM
    • 8,782 Posts
    • 68,306 Thanks
    • #7
    • 3rd Jul 07, 10:09 AM
    • #7
    • 3rd Jul 07, 10:09 AM
    Oh and I have never been very good at budgeting, but we are not extravagant. We have never had much money as one or other of us was a student, then had 3 children which impacted on the cash flow a heck of a lot.

    Over a number of years of spending a little bit more than we earned every month, the debt just grew and grew without us really even noticing it!

    Until we had our lightbulb moment in Jan 2006, when we had bills to pay and no money after christmas so couldn't afford debt repayments for first time.

    Now all credit cards but one are on low interest for life of balance and debt is lower than it was at lightbulb moment all thanks to this site!
    Finally Debt Free After 34 Years, But Still Need to Live Frugally
    Debt in July 2017 = £58,766 DEBT FREE 31 OCTOBER 2017
    NEW GOALS - Build Emergency Fund & Loss of Income Fund. Save for house repairs.
    EMERGENCY FUND 1 = £4,005. EMERGENCY FUND 2 = £1,505.
    Goal - buy £50 worth of Premium Bonds per month = £0
    • immoral_angeluk
    • By immoral_angeluk 3rd Jul 07, 10:33 AM
    • 23,754 Posts
    • 22,635 Thanks
    • #8
    • 3rd Jul 07, 10:33 AM
    • #8
    • 3rd Jul 07, 10:33 AM
    Mine was basically looking at the minimum payment rather than the whole balance and accepting anything I was given.
    Total 'Failed Business' Debt £29,043
    Que sera, sera. <3
  • coops024
    • #9
    • 3rd Jul 07, 10:42 AM
    • #9
    • 3rd Jul 07, 10:42 AM
    Most of mine was getting on the property ladder !

    We had to take out a £7000 loan to boost our deposit and already had an £8000 loan (for the car) so yeah now have £15000 to pay and a £120,000 Mortgage ! :confused:

    But I am a big fan if this site and these forums ! so hope to pay it off sooner that the bank have planned !

    Its funny but I didnt see the £15000 as a huge debt but after reading loads of posts on here It does seem quite high !
    LBM - 20/05/07
    Well that all went FUBAR
    • joeblack066
    • By joeblack066 3rd Jul 07, 11:08 AM
    • 1,697 Posts
    • 1,787 Thanks
    My first husband and I had been married for 12 yrs, three young son's, and had just got ourselves to a position where we could earn well when he ran off and left me, homeless, broke, having to go onto benefits and overdrew our joint account by £350. Dragged myself back to subsistence level again, met my 2nd husband, had got 7 kids collectively but were both working and things were ok. Then he became controlling and violent, got made redundant and never worked again, spent loads on booze and eventually I left for mine and my kids' sanity, about £7.5k in debt, most of it joint but they chase me not him cos he's on benefits. Got it down to £1.5k, bought a house, last relationship ran up lots of debt in my name (online gambling, mobile phone etc) so kicked him out, and am now back on the road to debt freedom. Have great trouble trusting anyone, but have just started seeing an old friend that I know well, and feel that I can trust. It's not easy tho! To top it all, 1st ex has £40k a year job and 3 foreign hols a year, 2nd ex has more income than me and he's on benefits, 3rd ex has never paid back any of the money that he owes me. Hey ho.
    • Storm
    • By Storm 3rd Jul 07, 11:20 AM
    • 1,747 Posts
    • 1,402 Thanks
    I have no-one to blame but myself. After graduating I moved back in with my parents for a year & paid off the OD & CC I'd got then (about £3.5K), and once it was gone I moved out... to an unfurnished flat! I got a graduate loan to furnish it, and also at the same time started driving lessons (and saving £100 a month towards buying a car) I just looked at the minimum payments on the CC rather than the OS balance, was constantly at the limit of my OD, and I think I had it in the back of my head that once the loan & driving lessons finished I'd be fine again!

    Well, loan finished last September & passed my test 2 weeks later - which is the first time I actually added everything up - and it scared me, cos the snowball said at least 18 months to pay it all off!

    Part of me is grateful that at least I've got some worthwhile stuff to show for my debt (loads of furniture & a drivling license!) but so much more got frittered on nights out, food and general !!!!! It's awful to think that a year ago at the end of the month I'd buy my lunch on the credit card, £4 say, and I've not actually paid it off yet!
    Total Debt 13th Sept 2006 (exc student loan): £6240.06
    O/D 1 £1250 O/D 2 £100 Next a/c £313.55@ 26.49% Mum £130 HSBC £4446.51@15.75%M&S £580.15@ 4.9%
    Total Debt 30th April 2008: £0 100% paid off!

  • lvu
    Up to the age of 23 I had done really well, no credit cards, an OD of about £50 only used at the end of the month and my student loan was the goverment one, only taken out for 2 years to pay fees, life was good.

    Until, I was the victim of identity fraud. someone emptied my account 2 days after payday stealling £800, the bank knew it wasn't me but couldn't/wouldn't refund the money until their fraud department had okayed it. Instead they increased my OD to cover the amount which i could then reduce when they refunded my money. Good plan, lovely bank, except they refunded it in 3 small installments, also not being as internet banking savvy as i am now i missed them putting it in and never reduced the OD, 6 years later the OD reached £950 and they had earned £'s off me in interest.

    I got my first credit card 3 years ago to buy something for about £400 thinking, will be easier to pay it off at 0% than the time it will take to save up. Again fastforward 3 years and the bill is now £950.

    But thanks to this board i have done my snowball and reduced each debt by approx £2100 in the first month. Knowledge is power

    Thaks MSE
    01/08/09 - Honeymoon credit card - 0% £2500 - personal OD £350 - DFD May2010
    Done it once, will do it again - DFW 534
  • smudgemanc26
    Mine was the same as IM i just paid the minimum payments each month and managed to put more onto my card and took everything they offered without even thinking like when cap one put up my limit instead of thinking to myself why are they doing this and having the power to ring them up and say stuff it i just let it happen then thought i was rich again! If only i knew then what i know now.

    Some things i bought were for my house too im not justifying it at all but when i needed a new central heating system i didnt have the money to pay for it so i put that on my credit card. I wish i'd have just stayed cold and boiled water in a pan now!

    Oh well they say you live and learn and they are right you do.
    LBM - April 2007
    Claimed back my bank charges from Natwest - £1196
    Halifax Credit Card Claiming £467.35 Rec £467.35!/Capital One Card Claiming - £523.92/Barclaycard Claiming - £403.58 Rec £403.58/MBNA Claiming - £584.37 Rec£584.37
    Proud to be dealing with my debts
    Update: 2009 - Currently claiming £1900 from Natwest
  • beckiem
    i added mine up last nite £18,430.03p i got in to debt coz my partner was a very heavy drinker so we got in to debt took a £5000 loan then got in to debt again he was drinking his wages so i took out £8000 to pay off the last one and the debt then again £10,000 to pay it off the debt and loan again but the said on the first of august they may give me more so i can consolidate everything as my partner has been sober for three months!!!! after about 9 years so it would be a nice start for us again
  • nickelodeon
    Well my loan is from my post-grad course which I had to do to get the job i'm now in, the fees alone were £7,500 but I also received a further £4,500 for living costs. To be honest most of that went on going out and buying clothes, shoes etc! I wasted so much money at uni and still have to overdraft to prove it!
    Then I bought a flat a year ago and bought furniture for it on a 0% credit card, also used the credit card to pay for a skiing holiday, a flight to Spain and car insurance, car service etc! It all mounted up to over £3,000 pretty quickly!
    At the time I didn't think too much about it, though that just because I was using a 0% credit card I was being clever with my money and not paying interest, luckily I have been able to shift the balance to another 0% credit card and so haven't paid any interest, but that's not really the point, I still have to pay it all back and have now stopped using my credit card and only buy what I can afford!
    Debts in April 07 = £12,547.61 Debts in Aug 08 = £0
    I'm debt free! Woohoo!
    DFW Member # 476 Proud To Be Dealing With My Debts!
  • LJD1
    Our debt problem is totally our fault.

    We bought a house that was too expensive for us but have to say that's the only good mistake we made as we've never had to move and we couldn't have afforded house prices now. We had to have some essential work done on the house and got totally stung for the loan as we just saw the monthly repayment rather than what it would cost us. Seven years later we owed more than we'd borrowed in the first place and remortgaged to be able to pay that off (since repayed the extra on the mortgage).

    We used credit cards to buy things rather than save and they just grew and grew. Then we got the one account for our mortgage which meant we effectively didn't pay the mortgage for two years as we just kept spending up to our facility.

    It's all paid off now. I won't get in debt again because I write everything down that I spend and we don't buy anything on impulse anymore.

    So, all our fault and it won't happen again xx
    January budget
    Nothing left!
    • Pooky
    • By Pooky 3rd Jul 07, 12:22 PM
    • 6,863 Posts
    • 44,618 Thanks
    Mine was sheer stupidity.

    Had no debt until 1998, we managed to get a mortgage for £39500 for a house that needed completely renovating, we were renting before that at £450 per month so the drop to £167 mortgage was ideal, we'd use the extra to start getting work done.

    I took out a credit card in my name (£5k limit even though I wasn't working) - used it to fund some of the bigger purchases, i.e. kitchen (MFI ex display for £300) and new bathroom suite. Then we had a roof problem, so spent £3k (a loan - in my name only as I was the only one there at the time to sign the papers) having that reroofed and new gutters etc - so £8k and money was getting tight. Then the car broke down - bought a £500 run about (another credit card - in my name as I was the one that phoned for it) that was more trouble than it was worth.

    The marriage died, I asked him to leave and then realised I was alone with 2 small children, a mortgage, debt and no job. But boy was it worth it to be out of that marriage.

    Met a lovely bloke - he had £11k of his own debts so we struggled - didn't help he was 150 miles away - we didn't eat all week so he had the petrol money to come and visit. So there we were with £19.5k of debt and no way of getting out of it unless we sold the house - which we needed to spend more on to finish - took the bull by the horns, spent another £3k to get the house done and then got a letter to say that due to exh's debts he'd run up since leaving - the house was going to have to be sold - we argued that he shouldn't get half the proceeds as he'd not paid for work - went on for months and months - finally sold the house and between us made a profit of £47k - which the courts said needed to be split between us (wasn't happy but what can you do!!)..cleared mine and new DH's debts.

    Stupidly 7 years later we're in debt again - new DH had even more debts chasing him that he'd tried to ignore, we had a car written off 3 weeks after buying it - leaving us with a car loan and no car and a substantial loss on the insurance.

    We're now in a position that we're not paying interest on anything, DH is now earning over £40k a year and we should be debt free in 10 months.

    I'd hate to think that we'd be in this position again but you never know what life is going to throw at you - at least I know how to deal with it and that it really isn't the end of the world as long as you've got love and support and beautiful kids.
  • nicola1982
    My story has two parts. The first begins with an idiot ex and a monkey. Back when I was with my ex I couldn't drive and depended on him entirely for lifts etc. Problem was he never had money to put petrol inhis car, not even enough to get to me so I could repay it. So I took out a credit card in my name with a card for him to use for petrol. Stupidly I trusted him and didn't set a limit on spending. It was only when I got a call from the cc company regarding excessive spending in HMV I started to question what he'd done. By then it was too late - he'd run up £3500 within a month spending on things such as a monkey and cage (which he stupidly lied to me about the cost, despite the fact I got the bill for it), and Apple Mac and various CDs/DVDs and musical equipment. After we'd broken up he continued repaying it until I started seeing OH when he started to miss payments and moan when I rang asking for money. I ended up telling him to forget it and have never spoken to him again.

    Making the repayments on the debt left me short at university so I used my cards to get me through. I also spend time studying in Canada which cost alot more than I'd expected. It all built up and soon I was £14k in debt.
    £4000 challenge

    Currently leftover - £3872.15
  • shamu95
    hi, Think everyone knows my story but here it is.
    Got ill when pregnant with 2nd child which was 3mths in hosp and a year off work. payment protection paid out on a loan but that was it-only had mat pay coming in so borrowed off my cards to pay other things like my share of mort etc.
    Wouldnt say ive spent an awful lot just everything went on the cc-the car ins aswell and my income had decreased so much it just got out of control and when there was no more money left i consolidated. Worst thing ever- now here i am again as i again robbed peter to pay paul.
    june debt totals:
    Citifinancial £11700
    Morgan Stanley £860
    Capital one Mastercard CLOSED
    Capital one visa £1676.3
    Halifax £6650
    Barclaycard CLOSED
    Abbey £1756.85
    Dad £6625
    Mbna £2282.20
    Total £31550.35

    £1000 in 2mths challenge £228.19
  • thevoiceofalan
    By then it was too late - he'd run up £3500 within a month spending on things such as a monkey and cage
    Originally posted by nicola1982
    Seriously a monkey in a cage ... a real monkey??? Where did he buy that? I thought I am bad for impulse buys

    For me uni far too many students loans, paid off my OD's now and my cc was at £3000 basically honours year living interest free card paid rent off it etc got me my degree which off the back of that I have paid most of this off.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

1,667Posts Today

5,193Users online

Martin's Twitter
  • Have a great Easter, or a chag sameach to those like me attending Passover seder tomorrow. I?m taking all of next?

  • RT @rowlyc1980: A whopping 18 days off work for only 9 days leave! I?ll have a bit of that please......thanks @MartinSLewis for your crafty?

  • RT @dinokyp: That feeling when you realise that you have 18 days of work and only used 9 days of your annual leave! Thanks @MartinSLewis h?

  • Follow Martin