Rabbitrabbit
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 Posted 12th September 2007 21:21 IP   
I have only been in debt once, and that was when I married and inherited his overdraft!
My son, who is 24 got into difficulties when he was 18. Everyone and his uncle wanted to lend this lad who didn't even have a full time job loads of money. We bought him a car for his birthday (old and slow) but it wasn't what he wanted so he borrowed money to buy a better one. Three crashes and four cars later, he was in serious do dos. He got depressed about having no money so he bought things to cheer himself up. He spiralled into an even deeper depression (including self harming) and took a long time (with a lot of input from me) to sort himself out.
He has now got it down to £15k. Actually, I took out a loan on his behalf in my name because once you have "history" you have to pay higher rates, so they have got you for life. I think the banks and other institutions are totally irresponsible and don't think they should be allowed to offer loans in this unsolicited way, certainly not to 18 year olds.
He is now a lovely young man whom I love to bits with a good job. It was a steep learning curve for him and it will take until he is 30 to clear.
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guavafish
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Posted 12th September 2007 21:37 IP
took out a £3k loan a few years back. Paid it off now, but thats the most ever been in. If not careful will have to get another one 
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Peter
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Posted 12th September 2007 22:04 IP
It is pretty standard now for people to end up in debt, not least becasue of the rush to get people to attend university when the system cannot cope with it financially.
As I did a degree, then went on to an MA (without any funding) and a PhD then I have learnt to cope with debt, but I am really looking forward to a time when I won't be subject to it.
Technically everybody with a mortgage is in debt, but I think that a mortgage should be seen differently to other debts.
When you see a guy reach for stars in the sky
You can bet that he's doing it for some doll.
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WellManicuredWoman
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Posted 13th September 2007 09:36 IP
Well I have a student loan from uni, a couple of credit cards, I did have an overdraught but the bank consolodated that so I am paying that off, and I took out a 3k loan after uni to replace my car and pay for the deposite on my flat.
I definatly wouldn't consider taking our another credit card/loan etc, what I have now is enough, and I am paying the off gradually.
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Ali
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Posted 13th September 2007 09:48 IP
I was in serious debt when I split from my ex hubby as due to his gambling addiction I'd taken loans and credit cards to keep our heads above water.
It's taken me 5 years but I'm almost clear of it now.
I don't consider my mortgage to be a debt, more like a savings plan as my house is now worth 70k more than the balance on the mortgage. Of course I'll never benefit from this unless I downsize when the kids move out but I'm happy in the knowledge that the kids will benefit when I go off to the happy hunting ground.
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Cleo
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Posted 13th September 2007 10:30 IP
I don't have any debt (except for £175k mortgage!), having cleared all credit cards last year.
I left uni in 1992, before loans became vast and owed just £825 for two years of loans. This I paid off when I started earning £15k pa and was just peanuts.
I've never taken any other loans out. I used credit cards for a few years and I think at the maximum I had about £2000 on them.
I've consciously worked hard at managing my money. I have a pension I've been paying into for 14 years, an investment account that's been going for 7 years now, and a high interest saving which I will convert to an ISA. Anything I need or want I pay for upfront (and I keep a £5k float in my current account for 'emergencies').
I think it helped that my parents never used credit and I grew up learning that if you wanted something you saved up for it or else you did without it. I've never wished to live beyond my means and even nowadays I am clear about the lifestyle changes I/we would make if we had to reduce our outgoings.
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Hattie
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Posted 13th September 2007 10:46 IP
I was in debt for a while as a result of suddenly losing my job a couple of years back. It has taken until now to really pay that off.
I do need to go in to my overdraft every now and then, but that really annoys me having to do that. It isn't like I am not sensible with money, I don't 'splurge' on unecessary stuff. The cost of living is so high though, it is a necessity once in a while. We try to work it that my salary covers the mortgage and most of the household costs, and then OH's salary pays for one off stuff that couldn't be planned for.
After everything is paid though, there is very little left over to 'save'.
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wuzysong
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Posted 13th September 2007 11:03 IP
I was in debt after OH died, he left me with a lot of his debt in my name, on a very small wage i managed to clear it all, it took a few years and had to beg from peter to pay paul most of the time, i was a couple months short on my mortgate.
i'm financially sound now though, with only mortgage and a little bit on a credit card to juggle, easy when i think of where I used to be. i'd go 1k overdrawn 3 days after payday because of all the direct debits, i wa paying out more than i earned at one point, and was very frightened!
I have not been overdrawn this year, and i'm proud of that!
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actionman1972
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Posted 13th September 2007 11:18 IP
Cleo £175k mortgage - crikey
I thought mine was bad at £130K when I lived nr Gatwick
a nice easy £95K now though
I had a lot to sort out when my OH died as I had 6 months off work unpaid though I did have some savings at the time
I currently have a business loan as well as my mortgage but the value of the four flats is more than I owe
"If you always do what you've always done, you will get what you've always got. "
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Cleo
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Posted 13th September 2007 11:31 IP
Quote:
actionman1972 wrote:
Cleo £175k mortgage - crikey
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and it will be going up when we move too!
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Dick here
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Posted 13th September 2007 12:02 IP
How's the move going, Cleo ? It seems to be taking forever - as ours did...
For the millionth time, stop exaggerating !
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Cleo
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Posted 13th September 2007 12:14 IP
Quote:
Dick here wrote:
How's the move going, Cleo ? It seems to be taking forever - as ours did...
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Its taking ages!
We eventually got some info back regarding the planning permission for the rear extension but only because I phoned the planning office and asked. There was no permission but if it was older than 4 years and if there was nothing structurally worng with it then we could get a waiver from the council.
The initial survey had revealed a possible problem with the cellar - relating to the concrete floor of the extension. Anyway, we got a structural engineer out last week and the report a couple of days ago which says all is fine with a couple of grands recommended expenditure. So now the mortgage can be finally approved and we can get moving again.
Fingers crossed, eh?
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Dick here
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Posted 13th September 2007 12:27 IP
Definitely. Sounds like you've still got a fair way to go though, my guess is that you'll move in November.
For the millionth time, stop exaggerating !
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Cleo
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Posted 13th September 2007 12:34 IP
Quote:
Dick here wrote:
Definitely. Sounds like you've still got a fair way to go though, my guess is that you'll move in November.
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Oh I hope not. Everything else is done - all the legal stuff etc. We're hoping to exchange pretty soon and complete and move at the beginning of October.
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Dick here
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Posted 13th September 2007 12:45 IP
It'll be worth it once you do get there - you soon forget all the hassle that preceeded it.
For the millionth time, stop exaggerating !
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Bionictoohey
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Posted 13th September 2007 12:47 IP
I've got a mortage and a car loan. But nothing else, I cut up my credit cards a long time ago. Few of us Scotsmen are willing to pay money back at 15.9% APR.
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Dick here
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Posted 13th September 2007 13:16 IP
Quote:
Bionictoohey wrote:
Few of us Scotsmen are willing to pay money back |
Quelle surprise, Squire.
For the millionth time, stop exaggerating !
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Kathy Lees
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Posted 13th September 2007 16:39 IP
I've always been careful, responsible and sensible with money and have never been in debt.
As much as I want to get onto the property ladder, it scares me to think of the hassle it can be and the insecurity I'd be in for the next 25 years.
Abortion - It sucks the life out of you.
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irish_lass_in_london
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Posted 13th September 2007 19:42 IP
i have been in massive amounts of debt before. i almost lost my council house because of it at one point. i was young and naive. i allowed my ex to tak the mick and when he walked out - gues who was leftwith it all.
i contacted everyone, was very honest with myself who iowed hat to, i contacted them all - got DMP's put in place and turned it all around.
i am still paying for some things now - but it's under control and i feel happy that i didnt bury my head in the sand, although i tried to initially.
You put the moo in cow.
There is no moo in cow.
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Dick here
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Posted 13th September 2007 19:53 IP
How can you lose a council house ? I thought that's where you end up if you get into debt !
For the millionth time, stop exaggerating !
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irish_lass_in_london
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Posted 13th September 2007 19:59 IP
nope - i had a seperate account, was putting money in there under the assumption my rent was coming out weekly..turns out he was hiding the letters and hissing the money up the wall and gambling. my own fault though - i accept responsibility for not checking it myself
You put the moo in cow.
There is no moo in cow.
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southcoastpete
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Posted 13th September 2007 20:15 IP
I have debts.
Mortgage, loans for car and central heating. Small (£550) overdraft and a couple of grand on a credit card.
But then I also have about £3000 in savings right now. So I guess I'm solvent.
I do like to be carefull with money, but then I also have a "lifes to short" attitude.
Most of my debts built up after I bought my flat. I'm paying them off quite nicely now.
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Dick here
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Posted 14th September 2007 12:12 IP
Why not pay off the credit card immediately, Pete ? You're paying unnecessary interest as it is, far more than the 3k savings will be earning.
For the millionth time, stop exaggerating !
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Dick here
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Posted 14th September 2007 12:13 IP
Quote:
irish_lass_in_london wrote:
nope - i had a seperate account, was putting money in there under the assumption my rent was coming out weekly..turns out he was hiding the letters and hissing the money up the wall and gambling. my own fault though - i accept responsibility for not checking it myself
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But if you had 'lost' the house, what would have happened ? They'd have had to re-home you in another !
For the millionth time, stop exaggerating !
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southcoastpete
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Posted 14th September 2007 13:15 IP
Quote:
Dick here wrote:
Why not pay off the credit card immediately, Pete ? You're paying unnecessary interest as it is, far more than the 3k savings will be earning.
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Not paying any interest on the CC, Dick. I'm doing the "rate tart" thing of moving it around. Though of course they are catching up on that and charging 2%!
Thing is, if I cleared my CC, then I'd have very little in savings really. So if I get problems with the car/flat, then I'd have to use the CC!
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judderman
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Posted 17th September 2007 09:46 IP
Quote:
southcoastpete wrote:
I have debts.
Mortgage, loans for car and central heating. Small (£550) overdraft and a couple of grand on a credit card.
But then I also have about £3000 in savings right now. So I guess I'm solvent.
I do like to be carefull with money, but then I also have a "lifes to short" attitude.
Most of my debts built up after I bought my flat. I'm paying them off quite nicely now.
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One of the golden rules of finance is to pay not to have debt and savings at the same time, its probably sensable to use your savings to get rid of the debt as at the end of each year you will probably be better off as I assume the intrest you paying on you debt outweights the interest your getting on your savings.
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irish_lass_in_london
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Posted 18th September 2007 11:22 IP
Quote:
Dick here wrote:
But if you had 'lost' the house, what would have happened ? They'd have had to re-home you in another !
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no - part of the policy is if you lose it cos of non-payment then you're on your own
You put the moo in cow.
There is no moo in cow.
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Phil the Saint
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Posted 18th September 2007 11:56 IP
We're quite far up the swanee and we don't have a hope of ever paying it off on my wages alone. I do a good job of shuffling credit card debt around. I'm hoping the astronomy writing will help the situation.
I'm also looking at using the popularity of my website to promote advertising.
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Loz
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Posted 18th September 2007 12:11 IP
I don't think there can be any excuses for debt - there can be reasons for it, as people on here have shown. But people that get into debt because they think its okay to use credit cards to excess, buy things they don't need, not work.... that is just stupid.
I have a mortgage and a small overdraft. I also have an ISA (my emergency money) and a savings account (my money from my bar work goes into this and it is a "treats" fund - holidays and doing up the house).
When I was at uni I was fortunate that my parents gave me a loan, so I didn't have the same interest as on a bank loan. But I worked very hard all during my time at uni. 2 bar jobs and working every day I could in the holidays. I enjoyed it as it was social, and it made me feel I was being responsible for myself. It is possible to come out of uni without being hugely in debt. You just have to be prepared to manage your time effectively and do some bleeding hard work! Too many students moan about debt and expect money to just be given to them for nothing.
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Health and Lifestyle Forum :: Consumer Lifestyle :: Finance :: Have you ever been in debt?
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