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]

Because I was lucky enough to get on the property ladder before prices became silly my assets outweigh my liabilities. I owe about 2k on a single credit card which will soon be paid off when a work bonus gets paid.
It's my children I really worry about. I can't see any future other than one of inevitable huge debt for them.

[helpmetoo]

there is a saying in business and it is becoming more true now for individuals

if you owe five thousand youve got a problem....

if you owe fifty thousand the bank has got a problem.

if you are going to have debt problems you may as well have serious debt problems the outcome will most probably be the same

[ruby27]

Not a penny

House, car and clothes all paid for. Do not own a credit card.

I am old fashioned I save up for things.

[ludwig]

Ruby - did you save up to buy your house outright? that must have taken a while.

[indiechic]

Just the word debt makes me cry. I owed my bank 200 quid when I was about 18, this turned into a huge debt and it terrified me to get credit for years after that. 8 years later I decided that I was earning enough to get more credit. A few credit cards, a catalogue, things like that...... then I split with my partner couldnt go to work and the debts just go up and up and up. Im trying to get them to freeze what I owe at the moment.

Oh and tax credits reckon they have overpaid me too.

[weeal]

luckily I am not, and i have NEVER had a credit card nor do i intend to have

[China Doll]

I am actually but it's all from about ten years ago, alas I'm now reaping the rewards of a much younger and far more hedonistic China Doll... Little wench, I could kill her.

I've been in contact with one of those people who help you to repay under one bill but I have to say that they've been calling me recently and I'm not answering because I'm just so scared.

I'm hopeless with money, not in that I run and spend it all on rubbish, I actually buy very little in terms of material things and like everyone else I pay the bills, do the shopping and hope there's something left over to play with if I'm lucky. It's just that money has always scared me, I don't understand it, I don't understand investments, banks, nothing.... I didn't even have a bank account until I was 18 and that was only because I became a student. I think my fear stems more from the fact that I grew up in an enviroment below the breadline and that's what I'm used to, when I was kid mortgages, ISA's, savings accounts, credit cards, catalouges... all that sort of thing were alien concepts to me and they still are really.

Normally when I'm scared of something I try and learn as much about it as possible (I'm a walking font of useless knowledge about bugs) so that I can understand it but money/finance scares me enough that I don't even want to know which is quite the wrong attitude to have.

Perhaps I should have put in to room 101.

[Le Chat]

Apart from a mortgage of �75k - against a house valued at �350k, we owe nothing!
I am very good with money, although Mr The Cat isn't, so I organise it all completely.
We spend wisely, mostly and have evrything we need and a bit more....although I would really enjoy a champagne lifestyle. I was brought up with rich parents, who knew the value of money and were not frivolous and I never wanted anything from them!!
I know plenty of people who owe thousands and know that they'll never pay it off in this lifetime. I have learned that a big, flash car is not indicative of a persons wealth!!

[Lonnie]

Hi naomi,
The only debt I have, is the mortgage, I don't have any credit cards, and if there's something I want, I save for it, but I must admit, I do have a paranoia about debt, I just hate owing, and will not be in debt to anyone if I can help it, even if it means going without.

[EngTeach]

I am credit card free. I have a mortgage, and even the "experts" call that good debt. I have 1 more year on my car payments. I have been in credit card debt more than once. No More!
I tell my HS students that if they learn nothing else from me to keep away from credit cards is the one thing I hope they remember.

[Whickerman]

Mortgage that will be paid off in about 10 years, but it's a helluva lot less than the house is worth. Course that means ****** all unless I plan to sell.

A credit card with outstanding balance, nothing I can't deal with.

Lucky I suppose

[ruby27]

ludwig

Tragically all 5 of my husbands died soon after we were married............

Seriously, I am not suggesting it as an alternative but definitely a consquence of not having children results in disposable income to pay of a mortgage. Nothing more than that I reckon.

[naomi24]

Some interesting answers - and I hope we get more. The reason I asked this question is because I visited a friend in hospital last week who is there purely as a result of debt. She became suicidal. In her case, she borrowed money under pressure from her lazy good-for nothing son and his equally lazy wife and teenage children, who want everything, but aren't willing to work for it. It made me wonder how other people get into such terrible, unmanageable debt. Is it because we all want too much these days, and can't be content with what we have?

[smudge]

We've often been pestered to take out credit cards in the past, but have declined the 'offers'! We finished paying off our mortgage a few years back, but do sympathise with anyone struggling to survive these days, as I'm sure most of us have fallen on hard time at one time or another & it's not nice.

So sorry to hear about your friend Naomi, it reminded me this story:

There was an old boy at work, who used to do a spot of driving for us to boost up his pension. He came into my office one day & burst into tears. When I asked him what was wrong, he told me that his only child (a son in his 40's), was always asking him for money & to buy appliances, etc., for him & his family. I advised him to put his foot down & tell his son that he couldn't carry on working just to bail him out every time he needed money, but he didn't have the guts to do so. I obviously couldn't intervene, so poor old Bert carried on until he could work no more & eventually passed away, bless his heart

The moral of my story is - don't borrow money you know you can't pay back, 'specially to loved ones who aren't that well off themselves.

[smudge]

*'scuse the sp, rushing again!