Debt worries
I have never been very good at managing my finances. I have never earned a high salary in all my working life to date. I would always run out of money before the next payment was due in my bank account. As a result of this, I would end up having to put my grocery bills on my credit card so I could afford to eat. I was hardly living the high life either and I certainly didn’t have the latest mod cons or gadgets at my disposal, and neither was I leading a life of excess, I was merely just trying to live, to survive and pay my bills.
I was also far too generous with my money. I often helped out friends when they needed a loan, or I would offer to pay for things when I couldn’t really afford to. When I was with my ex-boyfriend and we shared a house, I was the one on the higher (even though it was rubbish!) wage, and therefore all the main bills come out of my account via direct debit. Or I would pay for our annual holiday on my credit card. I never asked for anything back, because I always believe that when you are in a committed relationship, what is mine is yours and vice versa.
Banks and shops were only too happy to offer me loans, credit and store cards and I took them. Why wouldn’t I? It was too easy and too tempting. Even as a student I was given store cards, and yet I didn’t really have any means of repaying them consistently. I did work during the holidays – indeed I have always worked (up until I had Burton) – and would save money to see me through my university years as I didn’t get any grants as such. So knowing I could have things and not have to have to worry about having the cash there and then was perfect for me!
On August 6th, 2010 I was made officially bankrupt – it was my choice (not that I had any other really!). I won’t go into the exact ins and outs but it was a mixture of debts from my student years, my early working days and from when I ran my own business. I worried about my debts for a long, long time and once I became officially bankrupt I just felt so relieved. Like a huge weight had been lifted from my shoulders.
I hope that when I eventually start working again and earning some money I will manage it better. I must! I certainly won’t make the same mistakes again and I won’t accept a credit or store card! I don’t care what anyone says, it’s very easy to get out of control with your finances and get into a debt rut with no way out. When I think back over the years as to how much money I borrowed and spent it is scary and very stupid. I wanted to be independent – financially and as a young woman who had left home and who wanted to live her life.
I made my choices.
I put myself into such debt
But it was also my choice to end it and declare myself bankrupt.
I am so pleased not to be worrying about my debts anymore
I made a new start and wiped my slate clean – it was a hard lesson to learn but I am grateful to have come out the other side.
If you have debt problems I can recommend contacting:
Your local CAB http://www.citizensadvice.org.uk/
National Debt Helpline http://www.nationaldebtline.co.uk/ who are there for you to offer free and confidential advice
Don’t wait for your debts to mount up out of control – take the plunge and sort them out. Get help and advice from experts who are trained to help you.
This is a very good idea but worry it would not work for me as i have a mortgage.
Any help appreciated.
I’ve always been terrible with money and relate a lot to what Jenny says about being overly generous. I am the type of person that spends what I have (if not more!) and have ended up in more debt when on a higher wage because I felt I deserved ‘better’ things because I earned more.
Now since I had my daughter I have turned a corner and can’t believe how well we’ve managed on SMP – so much so that I’ve decided not to return to work even though my husband doesn’t earn much and I was on nearly double his wage. Now my focus is firmly on my child. The worst damage on my credit file is almost off it and I too feel liberated at the thought!
Well done for sorting yourself out it is not easy.
Another place that people can get FREE help and advice is http://www.capuk.org They are a national charity that provide free debt advice and support. My husband and I we in a lot of debt but with help were able to pay it all off and now have been debt free for 3 years. They help be negotiating with creditors a manageable payment plan that is fair to both you and all the other creditors as well. In many cases interest is often reduced or stopped. Debt stops you functioning and the sooner you get out of it the better.
Well done! I never made it as far as bankrupcy but with the help of the CCCS (consumer credit counselling service) cleared all my debts from student and subsequent poor spending. There are people there who want to help and won’t be judgemental. They will just guide you and support you and do the negotiations with creditors.
Managing your debts doesn’t have to be a hard task if you get the right advice. The UK has around 10 million people suffering from debt so it shows that if you are finding it difficult to manage your finances, you’re not alone.
One of the best efforts you can make is to understand how you’re spending your money. You will be surprised just how much money we throw away on those morning coffees at starbucks or paying for a gym membership we just don’t use.
Here’s an income and expenditure template to help you calculate your monthly financial commitments. You can download it for free and it will calculate the totals for you.
Congratulations for getting your own finances on track. If you have the will power to stick to a plan then good on you.