To think getting into debt is incredibly easy?

[Username1917]

I had a comfortable upbringing, parents taught me “don’t buy what you can’t afford, saving is important” etc.

I got a job at 18 and a few months later was offered a credit card by my bank, for the first few months I paid it off in full religiously. Then I thought well I’ll just pay half this month and half next month, no big deal! Then it spiralled and I thought oh I’ll just switch to an interest free deal and pay it off before it ends. Then when the interest free deal expired I got a loan over 5 years because it was “much cheaper” per month.

Before I knew it I had debt (including PCP car) the same level as my salary, at the time that seemed very manageable.

I’m lucky that I have a well paid job now and have paid it off in full. It’s given me a right kick up the bum and now I have no debt, but AIBU to think this is not uncommon, even having grown up with parents that tried to teach me about money?

You can still be financially literate and still end up in debt.
I agree. That's why it's more complicated than something solved by a few lessons of PSHE.

It's easy to get into debt, but there's lots of situations someone could be in debt:
A could be made redundant, or have no hours on a zero hours contract and need money for essential bills and food.
B could be used to wanting new outfits before payday so puts their ASOS/Boohoo shopping on Klarna. They also have several store cards to take advantage of the 10% off discounts and cardholder offers but have been making minimum payments.
C could have an unexpected boiler breakage and no float
D could be pretending that they need the credit for everyday essentials because they only go to Tesco, but actually when they go to the supermarket they are throwing in lots of extras, and a cheap jumper here and there, a new set of mugs for the kitchen when the original ones are fine, so over the course of a month they easily have spent a couple of hundred quid on small essentials
F could have a bathroom leak and take on a loan from their bank or finance deal to fund a new one.

They're all easy ways to get into debt, some are circumstantial and others are indicative of mindless spending.

@GertrudePerkinsPaperyThing Mr Micawber! I regularly think of this and it makes as much sense now as then.

I have a strategy now - if I really want a “big” purchase I give myself a 24 hour window to think do I need this? Why do I want this? Can I really afford this? Sounds silly but it’s amazing how many things I haven’t bought because of this tactic.

I do think there's a lot of smug people on this thread. I got into debt straight after leaving university. I needed a car to get to work. No rich parents to give me handouts so I had to borrow to buy a car. Buying a banger would have been a gamble when I needed something reliable so I bought something decent second hand, but it had to be on finance. I started out on a really low salary (journalism) but had to flat share...more debt accumulated just to live. So many of my friends had uni accommodation paid, driving lessons paid, house deposit given...I've never had a cent of help since I was 18. Debt was unpleasant but it helped me survive...I'm now really financially comfortable in my early 40s, having steadily climbed the career ladder and got married, but will still use credit if I need to. We've had some amazing family holidays paid on a credit card and paid back over a few months.

To add to this - it’s amazing how much influence social media has with this, especially Instagram. Which is mostly wealthy influencers who have been “gifted” things. I wonder how much they would but if they had to pay for it.

I do think there's a lot of smug people on this thread. I got into debt straight after leaving university. I needed a car to get to work. No rich parents to give me handouts so I had to borrow to buy a car

It's not smug to have not got into debt. I didn't have a car so I didn't get a job that needed a car, I got one that I could get to on 2 buses.
You could have done that too, but you made a different choice, which is fine but it's not fine to pretend that you had no choice. And its certainly not smug to know that you don't have to get into debt, you choose to.

It’s always more expensive to be poor - for example paying for everyday items on a credit card will cost so much more than just buying them but if you can’t afford to buy them you have no choice.
My in-laws are always smug they have no debt but they were left money, they bought a house cheap, could afford to only have 1 working parent, they were fortunate enough not be be born disabled or disadvantaged . They watch the awful poverty porn programmes on channel 4 and smirk at the single mums because they use those Christmas catalogues to pay for their Christmas presents for their children. It really pisses me off

*or channel 5. I don’t know as I don’t watch them!

Adding to what I’ve said - I think people do have to be careful to factor in their own luck compared to that of others!

Tbh I’m only ok because having bought first in 2006, both the first and second properties I bought with exh went up in value. So there was enough for us both to be ok after divorce. I’m laying no claim to being great with money at all!

I wonder how many people on here who say that debt seems to be a personal choice know that debt can happen to many people, depending on the circumstances.

And no one knows what life will bring.

It’s terrifyingly easy. I used to have debts of more than £10K and even at that level and working full time it was virtually impossible to reduce them. I was lucky: I inherited some money and said ‘never again!’

It is. I once had a champagne lifestyle or tried to have on a beer income. Shopping in Ralph Lauren on bond street because he actually owned that one and Madison Avenue. Dinners at The Ivy etc. Found myself in Paris on a Saturday morning going to a shop that custom made watchstraps. Ok the flight was only £70 return but really I wasn't some high paid person. Had some credit card debt so paid that off and live within my means. TV is full of ads for Foxy bingo and other gambling sites that make it all look fun and sexy but really isn't unless you win and if you win big you are blocked. But I can see the pressure people have to buy this car, holiday, watch etc.

@AtSwimTwoBerts we have had some graduate trainees start in the last few weeks. They all need to be able to drive, we arent on a convenient bus route or for that matter even an inconvenient one! Lots of industrial estates arent. Bus services outside of major conurbations are frequently non existent.

If we were to take the view that people starting their first job shouldnt incur debt then this would mean having any sort of choice would be limited to a privileged few whose parents were prepared to sub them in their first year or two.

This hardly encourages social and economic mobility.

@GnomeDePlume yes people might need a small amount of debt to purchase a car in order to work (for instance) but you can get small, decent, reliable car for only a few thousand pounds so people saying they "needed" a £7-10k car loan (for instance) are just kidding themselves.

There is definitely a crossover between 'need' and 'want'. 'Need' a car, 'want' a better car.

Debt isnt inherently bad. Debt incurred to start a new job (clothes, transport etc) can be a positive and necessary thing.

I think that badging student loans as 'loans' rather than say 'graduate investment' means that people can now start out as an adult feeling they have £££ in debt already so what difference does a bit more make.

My husband and I got into a lot of debt years ago. He changed jobs and then lost that job. Found another which was a much lower income. We used credit cards to eat as the income didn't cover our outgoings. These were normal things like rent, insurance and utilities. We were also paying for a car brought before our income changed.

We took a consolidated loan out. Switched to doing everything in cash and sorted ourselves out when my husband found a better paid job.

My husband left me with our 2 children 2 years ago and it would have been easy to slip into credit to keep things the same for my children.

I have been honest and said that things will change for us as there is only one income now. My son is about to do his GCSEs if not for Covid. He asked about a laptop. I said this was a big purchase.

I made the decision to work overtime to afford this as a Christmas present. My children were unhappy that my weekend was going to be spent working for the next 3 months. I explained that I couldn't afford the gifts, couldn't afford to borrow the money so had to do extra to get it. I think this was a good lesson for them. To earn before you spend.

I have also used Klarna. Lockdown means online shopping. I am an odd body shape, my daughter is a typical teen, likes the thought of certain clothes but doesn't like them when they try them on. Klarna has meant that I can order and try the clothes on without the money leaving my account. I have read so many stories about refunds taking weeks and don't want to be out of pocket when my teens have had a growth spurt and their clothes don't fit. If I'm not returning the clothes I pay the balance and still only what they need rather than what they want!