Are you in debt?

[naomi24]

We're hearing more and more about the huge debts people are incurring. If you are in debt, how did you get into that situation - does it worry you - and how do you plan to deal with it?

[ludwig]

Naomi, can you just clarify something - you said your friend 'borrowed money FROM her son' - did you mean to say borrowed FOR her son?

[naomi24]

ludwig, Sorry. Perhaps I should have worded it differently. I said she borrowed money 'under pressure from her son', meaning her son pressurized her into borrowing money for him.

[naomi24]

Smudge, some people borrow money with no intention of ever paying it back.

[ludwig]

Thanks Naomi, nothing wrong with your wording, I just completely misread it.

[tiggerblue10]

Luckily I have never been in debt.

When I was about 10/11 I went into a shop with my then best friend. I only had 5p with me but I picked out a load of sweet and my friend laughed at me saying that I didn't have a clue about money. When I was 21 I got a mortgage with the help of my parents but I have always kept a tight hold on the reigns when it comes to money. I have a credit card with about �200 on it at the moment which I'm going to pay in full tomorrow. I don't believe in loans either.

My friend on the other hand got into �6k worth of debt by the time she was 21 and �10k by the time she was 30! She then met a guy who paid off all her debts!!!

[smudge]

You're right naomi - I know of a couple of people who borrow money from someone close to me & they never pay her back.

They have no qualms about showing everyone what they've bought, even in front of the person who loaned them the money! I think she's getting wise to it now tho' will hopefully refuse next time!

[smudge]

*& will hopefully

[naomi24]

Smudge, the problem is some parents find it difficult to say 'no', but although they don't realise it, they aren't doing their children any favours. Children need to hear 'no' regularly, and to be taught to stand on their own two feet.

I think we've gone off the thread here somewhat.

[Ice.Maiden]

No debts.

[smudge]

Sorry, didin't realise it had gone off thread...!

[naomi24]

Smudge, no need to apologise - I led it astray, not you.

[naomi24]

In posting this question, I was expecting to get lots of answers from people with heavy debt, but it hasn't happened. I wonder if the debt problem is as bad as we think it is - and is it confined to certain sections of society, or is it across the board?

[hau kola]

Ive never been in debt in my life apart from the mortgage.

[Theland]

I am in debt now through helping out my kids and having six months off work in 2006. My only way out is to take my pension now, get the lump sum and clear off the debts, and then get another job, or win the lotto which would be a miracle as I don't gamble, or turn to crime. A nice juicy blackmail would do nicely. Anybody want to share any secrets? Please?

[Brooksy]

PayPlan helped me when I was in deep guano 5 yrs ago. They don`t charge you a penny for their services (ironically, they`re funded by the banks & credit card co.s) & put an end to those dreadful threatening letters & `phone calls. I`d been robbing Peter to pay Paul just to keep up the minimum payments. Haven`t had a card for over 3 yrs & don`t miss them one bit, I wouldn`t do credit again (even if rated to do so!).

[Theland]

I'll be looking into that and thank you.

[aims1202]

I had about �10,000 of debt, it was from a loan i got for a car, mobile phone bills and credit cards. I was paying it off slowly most of my wages went on it. Then when i was 23 i had my son and was on my own and on benefits. I couldnt get creditors to agree to let me pay less or freeze interest. So i had to make myself bankrupt. Best thing i ever did. that was 5 years ago i have not had any credit since, could have got some after two years but i dont want it. I have cash only and i save. Its so much better that way. I am not interested in ever owning my own home so will never be in any debt again.

[burbie]

Maybe school lessons should now include financial management.
It may be more important and relevant to todays youth to teach them how to cope with income and outgoings.
Im sure most of them wont have a clue about how to manage mortgages, bills, debt etc.

[naomi24]

burbie, I've always thought that too. It would be a very good idea to teach money management in schools. It's so easy to get into debt now - credit companies practically throw money at people - and often at those least likely to be able to cope with debt. Additionally, with advertising and peer pressure, everyone wants everything NOW. Very few seem to be prepared to either go without, or wait until they've saved enough to buy what they want. Credit Cards are fatal. It's so easy to run up big bills - but ask what the money has been spent on and very few would be able to tell you.