12.5.11

Coping with Debt

Hi, my name is Leanne, I'm 26, addicted to spending and in a serious amount of debt. I thought I would post about my debt as a) talking about it openly is quite therapeutic and b) if I can stop just one person making the same mistakes as me I'll have done some good.


History

While I was with my ex boyfriend of three and a half years he hated debt and hated people who had debt. I worked part time in Kwik Save while studying full time in College. I didn't go out, I didn't have a life, but I did have about £2,000 saved up. We then split up, I rebelled. The £2,000 paid for lots of nights out with the girls and several girls holidays over the next couple of years. Obviously this didn't only cost £2,000! When I finished College I got the job that I'm still in now, only things were different back then. I was paid less than minimum wage! I was young, careless and having fun for the first time in years! I kept getting letters in the post from credit card companies offering me thousands of pounds, the bank kept offering to increase my overdraft - why not - it meant I could have the holiday and all the clothes that went with the holiday, I'd pay it back in the end. I've taken out two loans to consolidate all of my debts, both times I failed miserably as I kept using my credit card and building up more debt (hence consolidating twice).


Present
I am now in quite a lot of debt. I am however very lucky. I have a mortgage and I still enjoy life, I also have a very supportive partner who is helping me out. Up until this week my credit card has still very much been my trusty best friend. Not any more! I've had a sudden realisation that if I carry on how I am I will never get out of debt, less of telling myself that I believe in fate and one day everything will sort itself out - Leanne - wake up and smell the roses, they smell like shite! The reason I'm still getting into debt is that I'm paying off more than I can afford, I now realise that there is no point in saying "I can live off this amount" and concentrate on paying debts, because I can't, I can't stop spending! I'm now making some serious changes, my lovely partner has agreed to pay my gym membership for me (thank you!) as that was originally the first obvious saving I could make. I've spent this evening ringing around and shifting my credit card debts so that I have 0% for a year. I will pay this alongside my current loan to avoid even more interest. When the 0% is up I will look for a new credit card offering 0%. I have a bills account and a spending account. The spending account has no overdraft. I have cut up my credit card and removed it from my paypal. This way if I want it and I don't have the money, tough, I simply can't have it! A Simple concept for most but not me! I'm also attempting to quit smoking (I'm only a social smoker anyway so this should be fine until I'm drunk!) and just generally be more sensible, go out a bit less and buy (this is painful!) less clothes.

5 comments:

  1. Ahh bless you sweetie, I agree it definitely helps to talk. Got yourself a lovely partner there also :)

    Just becareful with your account that doesn't have an overdraft, my friend had one and they still let her take out more money than she had in the account. They then went on to charge STUPID amounts of interest each day. It may of been a one off or a mistake, but its worth mentioning...rather safe than sorry :) Wish you all the best with paying it off though hun x x

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  2. well done to you for sharing :o)

    I went through a period of spending more then I earnt, and was also @ Uni which didn't help.
    With the help my bf I consolidated my credit card and over draft debt and am now paying off a lump sum via a loan every month.

    I now don't own a credit card and don't plan too for the forseeable future. I have an overdraft for emergencies and I don't buy anything unless I have the money to pay for it.

    Do you have any record of your out goings every month? The most helpful thing I have done is set up a spreadsheet and as soon as I get paid, work out everything going out, and what I have left over to spend for that month. This has really helped me have a control on things. :o) x

    http://mystyledefine.blogspot.com/

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  3. Thanks for posting about this darling. Although im not in the same situation i went through a time of supersaving then in to rebellion. I tend to be in the realms of manageable debt at the moment an dim trying to keep it there. Irealise that as i leave uni things are going to get hard. Its scary how little ocntrol i feel i have over spending. xxxx

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  4. Thanks for posting this just in time. I'm nineteen but really struggling at the moment with money and being independant, i've got my hands on credit cards and store cards thinking it was my only option, it sure feels like it but this has persuaded me to cut them straight up! it must be horrible for you but at least you are making changes for the better! good luck :) x x x

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  5. I'm so glad that you both found this post helpful! Now go cut your cards up - they are evil lol xx

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