Debt And How To Still Get On With Life

 

Debt. This can be seen as a dirty word, but I guarantee that we have all had some in our life, no matter how small or large. We just don't see or hear of it that much as we may hide our head in the sand and pretend it isn't there, or in my case, just feel too embarrassed to admit that we have it.

My journey with debt started over 20 years ago. I had never really had much money. I had a job, rented a house and just basically lived from day to day. Things started to get a little bit out of control when I lost my job and had to find a property with the local council as I could not afford to live in the house that I was privately renting. I was offered a one bedroom flat, which I immediately took, but was still unemployed. 

For a year I was still not working, but I managed to survive with what I had and then eventually I managed to find a job that had a temporary contract for 12 months. It was close to where I lived, so I could walk there and back everyday and it helped to get me back on track. 

During the 12 months that I was unemployed I made sure that I could calculate what I needed to spend on the most important things, rent, electric, gas, food etc and to not splurge on anything that wasn't needed. I don't mean the big things, but small things, like not buying that bar of chocolate or walking a bit further to the next bus stop as the fare would be cheaper.

When I was working I still maintained the mindset of when I was out of work and tried to save money on all sorts of things; changing my electricity tariff and how I paid for it, walking to most places, buying the cheaper items in the shops and non branded things, doing a big shop for food once a month and making it last; lots of little things that helped me.

After the 12 months in the job was up, I was then out of work again, but not for long as another job, very local to me, came up and I was successful. This was a permanent job with a steady monthly salary. Finally, I decided that things were looking up and I may be able to start saving a little. That was until one day a letter came through the post.

Now everyone will get the speculative letters coming through their letterbox asking if you would like a credit card or loan from these very large financial institutions, giving you all the perks that you can think of. It was one of these that came through my letterbox. I had never had a credit card etc before and for some reason thought that it would be a good idea to have one as it could help me out in emergencies. I thought to myself that I was now in a permanent job and that I would be able to pay off the card quite easily since I would only use for emergencies. That was my first mistake.

I signed up for the card and was immediately given a credit limit of £3,000. Now that was a lot of money for someone like me who had struggled gaining any money in the past, but I didn't refuse it and just smiled that they would have offered me this amount. 

Using the card for emergencies was a complete and utter disaster, as this is not what it was used for! I used it for all sorts of things and soon found out that I was only able to pay the minimum amount each month on the repayments which was a real mistake; I wasn't really paying it off, just paying off the interest. Despite this I carried on as if it would be okay.

Not long after this I met my wonderful partner and it wasn't long before we moved in together. He knew I had a credit card but I did not tell him anything about the figures on it. 

Shortly after I wandered in to my local bank branch and, I can't even remember how it happened, but I came out with a loan of £10,000! I can always remember what the woman at the branch said to me as she transferred the money into my account: 'Well that looks more healthy'. What a statement to say! I never really thought about it at the time, but having gone through a few things that statement always sticks in my head. Not healthy at all!!

Not long after that I did it again! Walked into my bank branch and got another loan for £3,000!! It was so easy to do and they were just giving me money! Bear in mind, at this point I still had the credit card that I was still using, spending on, as well as two loans that amounted to £13,000! I never told anyone about the loans or the amount owed on the cards and just kept the info to myself. I told myself it would be fine. I could handle it all! At this time my credit card provider sent me a letter stating that my limit had been increased to £15,000! I could not believe it! Even I, at this point, thought that was excessive.

Over the next five years I managed to pay back the repayments on nearly all of the loan at £10,000, but still had the loan of £3,000 to pay back and now a credit card bill close to £4,000. I thought things would be okay, until I lost my job.

Losing my job was a major blow. I had to find something that would pay me a certain amount each month just to cover the repayments on the loans and credit cards, never mind about cost of living. After having about 12 months of short term contract jobs and part time jobs, I managed to be successful in another full time, permanent job. During the 12 months I had managed to pay most of the money owed on the loans, leaving me with a small amount to pay back, but had also raised my bill on the credit card to just over £6,000. It had not been easy during that 12 months; I had cheques that had bounced, had to get another credit card with a small limit to pay household bills, it was getting out of control. I had been to the bank and told them my issues and they had put me on a payment plan for some of the debt. I felt I was in a nightmare.

I started the new job and I was having problems paying back the money that was owed on the credit card. The next minute a letter arrived from a debt collector. I was mortified! The fear I felt was horrendous. Every time a letter came from them I would hide it so my partner could not see and dealt with everything in secret.

I contacted the debt collection agency and arranged a monthly repayment plan. I decided from that point onwards, no more credit cards, no more loans, no more credit from anywhere! My partner was a very good influencer on me at this stage as, even though he did not know about my debt, his philosophy always is 'If you cannot afford to buy with cash, then don't have it'. I never really thought of that until this point. Of course, he was right and I needed to go down his path!!

It took me at least four years to pay off everything that I owed, but I managed to do it. Every time I would get statement through telling me how much I owed and how much I had paid back I felt so much relief. The fear and the pain started to fade at every point. The day came when I didn't owe anything anymore and it was such a joy! The feelings were euphoric and I felt so happy and pleased that I had managed to free myself.

I have been debt free for nearly eight years now, and I do not buy anything on credit, no matter how big or small (apart from a house and if I could manage to buy that with cash I would!) I have bought cars, clothes, tech items, presents, food, holidays etc all with cash - if I haven't got the cash I save for it. Never again will I go back to having credit cards, loans etc. I have even managed to save myself an amount that will be there for any emergency and my retirement. I now go back to the mindset I had many years ago when I was unemployed; plan, budget, can I find cheaper options, food shop once a month and buy essentials when needed.

I know how difficult debt can be and the strain that it puts on you physically and emotionally. It is so easy to let debt spiral out of control and it can happen to anyone, but believe me, you can come out of it. It will not be quick and it certainly will not be easy, but you can do it and I urge you to talk to someone if you are struggling. I think that was one of main weaknesses; I should have been open and honest with people and I wasn't. That's what made it harder for me to cope with; I thought I had to struggle with it on my own, but you don't. Get help if you need it and talk about it. 

(Picture is my own)