Joe
Member
Registered: 20th Jun 04
Location: Hesketh Bank, Lancashire
User status: Offline
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Its not about money management, its about being offered something you want for a small amount per month or whatever.
People will always want what they can't have whether they beg, borrow or steal.
Some people live life for now and enjoy it, some sit and worry. Who knows whats best to do, I'd rather die in debt than die with thousands in the bank.
Thats life...
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Paul_J
Member
Registered: 6th Jun 02
Location: London
User status: Offline
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quote:
Originally posted by daymoon
I just don't understand how people come into debt ( not counting student loans/mortgages)...
Even though i live with parents and have no real outgoings i still pay for everything myself. Uni fees, running costs of car, clothes, anything i buy for myself tbh...
Yes i have full time Job, but i save quiet hard too, try to put aside at least 100 a week..
When i had no job last year i was just sat at home all the time watching TV and stuff, not going out simply cos i couldn't afford it... At age of 16 whn i worked 4 hours a week + any school holidays, managed to save up for my driving lessons and a PC + car ( even though it was a 500 banger).
I JUST DON'T GET IT!!!
Local colleges should do money managment courses TBH....
hang on... you live at home. Boom.
--- Try living out of home, renting or paying a mortgage... then the majority of the money you earn will disapear on that (if not all your money or more than what you earn).
When you're essentially taking home £0 a month because your total outgoings match your incomings - then you can go into debt very easily by buying anything...
yes... if for example you want a new tv... it's not worth going into debt in that situation.
but ... if for instance, your clutch blows on your car... you will need to pay for it, and therefore someone may put it on a credit card etc.
Thankfully my total incomings beat by total out goings, but I know someone at work who's doesn't... he pays like £1250 a month for rent on a house for his wife and kid  ... plus all the rest. He will be in debt v.quickly.
As a core comparison, when on placement year, I earnt 17,000 less than I do now and managed to save around £9000 in a year living at home with my parents... I now earn £17k more, but have only saved about £3500 in a year
Point is... living at home is not a fair comparison for 'why people go into debt'.
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Paul_J
Member
Registered: 6th Jun 02
Location: London
User status: Offline
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oh yeh, and the fact I've only saved £3500 isn't because I'm crap with money, but just because I've got high outgoings renting etc, but also there's always sometihng each month that crops up that wipes my money out.
e.g.
Clutch £850
Tyres £350
Insurance £700
Tax £210
New Roof £650
etc... etc...
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spikedjack
Member
Registered: 16th Oct 08
Location: wolverhampton/cannock
User status: Offline
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except for student finance
im debt free so CREDIT here 
have a savings account for a house also
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dannymccann
Member
Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
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£104,000 on my mortgage, £18,000 in student loan.
Dont know how we are classifying debts, some people only class short term debt (overdrafts and loans) as debt, so in that sense I have none, but long term Im brimmed 
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gtitim
Member
Registered: 13th Feb 05
Location: the boonies
User status: Offline
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About 20k in loans and credit cards - not worried though - it gets paid every month. They joys of redundancy, the mrs getting pegnant and then working part-time instead of full-time. 15k a yr down in wages and me on training wage, Now at a point of back into the black and paying it off.
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noshua
Member
Registered: 19th Nov 08
User status: Offline
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Debt. Will owe around £7,000 come Monday thanks to University. £21,000 by the end of my course. Scary.
EDIT: Just read daymoon's post and completely agree - IF you live at home. Yes, if you're living at home and earn a minimum of even £80 a week there's sensible reason why you should be in debt. When I was 16 I managed to pay £60 a week for driving lessons (earning £85 a week at the time) as well as paying for the bus 3 days a week and food. When I passed I managed to save enough money for my first car (not expensive, but still) and pay £120 a month insurance, £120 a year tax and £20 a week fuel - not forgetting food, clothes, phone bill, etc.
[Edited on 09-04-2010 by noshua]
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Pop
Member
Registered: 8th May 03
Location: Reading
User status: Offline
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I'm in debt with student loan and a mortgage.
I can echo what Paul is saying. Living at home and saving is easy, move out and welcome to lots of expenditure. Thankfully I managed to save enough for my half of the house deposit and all the things we wanted to do to the house when we first moved in.
Our car scraped through it's MOT recently with only minor work needing but an advisory that will take a bit of diagnostics work and possibly expensive parts. We are probably going to buy a cheapish new car as the warranty is very appealing and the deals are good. Some of this will have to be financed.
Yes we could buy an older car but we would then be playing a game of russian roulette with something potentially going worng costing us ££££.
We have savings to cover us should a boiler break or something major happen.
I can budget now like a champ
[Edited on 09-04-2010 by Pop]
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Rammer
Member
Registered: 2nd Mar 10
User status: Offline
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quote:
Originally posted by Whittie
quote:
Originally posted by Rammer
Im in credit
This time last year though i was 21k in debt
How have you managed that one? Decent job after uni? Inheritance? Good effort though 
Was inheritance, Has deffo made me learn to be more wise with pennies now and cut up the credit cards, its all so easy to pay with plastic untill reality of your spending spree hits home.
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Mertin
Member
Registered: 12th Oct 05
Location: Scotland
User status: Offline
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I have my car on finance. nearly 24 months through the 36 though and doesnt bother me.
I have my student overdraft still at £1000, thats getting paid off next few months with my new wage
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Eck
Premium Member
Registered: 17th Apr 06
Location: Lundin Links, Fife
User status: Offline
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No debt as such. Pay monthly for my insurance but can cancel that at any time.
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AlunJ
Member
Registered: 3rd Apr 07
Location: Newport
User status: Offline
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apart from my mortgage, I owe just over £2k - mainly money I spent to get on the property ladder e.g. solicitors fees and borrowed a grand off my mum for deposit, but I'd love to get it shifted off my mind tbh, not easy on shite wages
[Edited on 09-04-2010 by AlunJ]
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Toby
Premium Member
Registered: 29th Nov 05
User status: Offline
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i have a mortgage and car fiance and thats the only debt, no balance on any of my CC or over draft, can afford both and both have equity in them so i do not worry about.
I have friends though thaty do live at home earn a decent wage but are skint, i do wander how some people are so bad with money.
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Bart
Member
Registered: 19th Aug 02
Location: Midsomer Norton, Bristol Avon
User status: Offline
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surely 99% of homeowners on here are going to be in debt?
^As Toby above, I have mortgage debt and about to take out car finance.
[Edited on 10-04-2010 by Bart]
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Tommy L
Member
Registered: 21st Aug 06
Location: Northampton Drives: Audi wagon
User status: Offline
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About £900 debt here. Doesn't worry me, I'm saving now and got a little chunk. I'm doing everything i want to do. I'm still young and want to do things now
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Eck
Premium Member
Registered: 17th Apr 06
Location: Lundin Links, Fife
User status: Offline
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quote:
Originally posted by gtitim
About 20k in loans and credit cards - not worried though - it gets paid every month. They joys of redundancy, the mrs getting pegnant and then working part-time instead of full-time. 15k a yr down in wages and me on training wage, Now at a point of back into the black and paying it off.
Aren't you a Bobby? Didn't know there were cuts for the Polis unless you mean you WERE made redundant and now training for them?
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sand-eel
Member
Registered: 15th Mar 07
Location: carluke/braidwood--IRNBRULAND
User status: Offline
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anyone who has car finance, loan, mortgage, credit card to pay off is in debt so yes Iam 
But it's not like I am struggling at all, like the word "debt" sounds like.
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daymoon
Premium Member
Registered: 1st Aug 08
Location: Selby, North Yorkshire
User status: Offline
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Most posters above:
Thats why i said colleges should do money managent courses...
Most of people don't realise what kind of outgoings they gonna have when they rent/buy.
I know i cant afford to and not moving ot until i know i can.
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Ben G
Member
Registered: 12th Jan 07
Location: Essex
User status: Offline
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my cousin who got laid off from ford (had the same job as me so was earning 34k+ a year) has been doing cash in hand work with his dad and has a kid and another on the way.
he also gets loads of benefits as he doesn't declare his cash in hand earnings, doesn't pay taxes/NI as they think he's still unemployed.
he's just bought an audi a3 3.2 v6 and a hot tub on the plastic.
really boils my piss but i know one day he'll get found out and i'll laugh my fucking head off.
they get their 1 bedroom flat paid for aswell 
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Matt L
Member
Registered: 17th Apr 06
User status: Offline
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I have stuff on my credit card but i could also pay it off now if i wanted to/knew how to without waiting for it to take it out itself
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
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quote:
Originally posted by VXR
You owe the money, but if the property is equal or more its an investment so not actually a debt. So yes I can claim it.
And no, not everyone is in this situation otherwise there wouldnt' have been thousands of homes recovered becuase people cannot afford to get another mortage on their property. Mostly becuase the house value has dropped to negative equity, or people got mortgages that they could never really afford to pay back (as in borrowed more than they can afford).
I do not look at my mortgage as a debt, I look at it as an investment.
It's still debt, it's still accruing interest and it still impacts upon your ability to spend your income.
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DANKZii
Member
Registered: 30th May 08
User status: Offline
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Credit,
But then again,
Im 18, live at home for free, at 6th form and have a 'fairly' well paying part time job for the amount of hours i do.
Sure thatll change at somepoint though.
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SVM 286
Member
Registered: 13th Feb 05
Location: pain
User status: Offline
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In debt, badly. And will be for about another thirteen or fourteen months.
Worst of it will be over in November though. Just credits cards and overdraught after that.
Massively looking forward to next summer.
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SVM 286
Member
Registered: 13th Feb 05
Location: pain
User status: Offline
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quote:
Originally posted by Nath
Debt from my car loan. But in 9 months I'll be debt free, for the first time in years
When i'm eventually in the black, it will be for the first time since the summer of 1998. 
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16vKarlos
Member
Registered: 27th Oct 07
User status: Offline
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£400
nothing too bad
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