*Photo credit
As you may already know if you’ve read our story, the hubby and I have spent the last 14 years – actually it’s 15 years now – in debt. That’s a whole load of years! An awfully long time to have been worrying about money.
Although thinking about it, for the first few years of being in debt, we didn’t worry as much as we should have done. We just thought of debt as a means to buying the material things we wanted.
It didn’t seem like a bad idea to buy things on credit as we were moving through an important stage in our lives – buying a house and moving in together, plus we were doing really well in our careers.
When you move out for the first time, there are certain things that you could do with to be able to live in your new place. You know – a kettle, toaster, cutlery, a sofa… that sort of thing. Looking back it was at this point in our lives that we made some of our biggest mistakes when it came to debt.
We started to ignore the meaning of having debt
Whereas many people will buy second hand stuff or ask friends and family to lend them some items until they sort themselves out in their new home, we did the opposite. We bought new stuff on credit as that’s the only way we thought we could ‘afford’ it.
We bought expensive cutlery, a matching kettle and toaster and one very expensive chocolate leather chaise lounge by way of a sofa. Then came the matching egg chair. You can imagine the rest. It wasn’t long before we racked up £10K in home furnishings. The credit card payments were annoying but we could manage it so we continued ignoring our debt – we knew we would pay it off eventually right?
Yet, here we are in 2014, still paying off debt from back then. Yes, balances were swapped all over the place to different credit cards and loans with different interest rates but technically we’re still paying for these purchases. Aside from the above mentioned items, we’ve now lost track and forgotten about most of what we bought on credit all those years ago. That’s the worst thing!!
By continuing to ignore our debt for a few years, we weren’t able to pay it off when we really wanted to and needed to. In fact later on, we had to resort to credit on several occasions to dig ourselves out of big financial messes, particularly with the hubby’s business. That’s when we knew we were in deep trouble.
Don’t ignore your debt!
If you have debt or are thinking of getting into debt for something, make sure you don’t choose to ignore it. Know what you’re getting yourself into (or have got yourself into). Face the facts and make a plan to pay back that debt, even if it means asking for help or making some big sacrifices. Don’t wait to pay it off – because tomorrow never comes. Life inevitably gets in the way and things crop up unexpectedly that need paying for. You’ll thank yourself later!
For what it’s worth, when our latest kettle packed up last year, we went to our local supermarket and purchased a white plastic (ugly) value model. It cost £4.99 and boils water. What more do we need? 🙂
Take control of your debt in 2014. Ask yourself:
Will you choose to ignore your debt (and potentially be paying off debt forever)? Or will you choose a debt free life with more choices?
We choose the latter!
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Related posts:
- The Gift of Debt: A Taste of Freedom
- The conversation that changed our financial future
- I will not give in: the cycle of debt has been broken!
Image courtesy of freedigitalphotos.net – I am not hearing you at all!
Great attitude – make 2014 the year!! The best time to start is now!
moneystepper recently posted…Regifting – Should I regive presents I have received?
I have lost track of how many times over the years my New Year’s resolutions included “get out of debt” – only to end the year pretty much where I started and make exactly the same resolution the next year 🙂
Many of us would like to be debt free – but like you say – if you’re serious you need to *really* make it a constant focus to really be successful because it’s so easy to ignore the issue in favor of more immediate gratification.
Richard @ Frugality Magazine recently posted…How To Become Debt Free: Getting Motivated To Pay Off Debt
We have an equally ugly one – you don’t need anything more to boil water.
Unfortunately many countries around the world promote citizens having large amounts of debt by giving them tax breaks. This almost sets people up to continue bearing the burden of debt for far longer than they otherwise would have.
Glen @ Monster Piggy Bank recently posted…What is Cryptocurrency – Bitcoin, Litecoin, Peercoin
Great post! We’ve recently come to terms with our debt and decided that 2014 is the year we get serious about getting it paid off! Unfortunately it won’t be possible to get it all paid off this year, but we are hoping that with some serious determination we can get rid of it within 2-3 years.
Dee @ Color Me Frugal recently posted…6 Things I Wish I’d Known Before Getting Student Loans
Thanks Dee! 🙂 I’m looking forward to reading about your progress throughout this year! Wishing you all the best for 2014.
I love your point about sometimes letting a debt stick around for so long, that you’re not entirely sure what the original amount owed was. I had the same issue with my credit cards. I know I racked up thousands in credit card debt, but couldn’t tell you the original amount…
Done by Forty recently posted…The Lottery: You Can’t Win If You Don’t Play
It’s so easily done isn’t it DB40? Everything then just rolls into a couple of monthly payments and becomes ‘normal’.
Well now that I’ve been through the paying off debt process, I would hope to never have to go back into debt for any reason. It’s just too stressful.
Tonya@Budget and the Beach recently posted…Imbalance and Lifestyle Inflation
I agree Tonya. I’ll be glad when I can say goodbye to this stressful part of our lives once and for all!
Best way too look at the new year! It’s the worst when new couples feel they need all these new things to make a house a home. In reality, the couple and their attitude is what it either a wonderful place to live or a terrible to live.
Amanda @ Passionately Simple Life recently posted…For the Love of Clothing…
Too true Amanda! A home is what you make it – and not in a materialistic way!
Great post! I spent the last half of my 20s ignoring my debt. Instead I could have been hustling and paid it off, would have put us in a much better spot when we bought the house.
Thanks Morgaine! I wince whenever I think about how much money I wasted on going out during my 20’s when I could have been paying off debt!
At least you remember how your debt started! I only remember getting a student credit card at 18 and maxing it out and staying maxed out until I was 30 years young. 😛 As annoying as debt is, you really can’t ignore it because it isn’t going anywhere. Great post Hayley!
Girl Meets Debt recently posted…My Take on Extreme Cheapskates
Thanks GMD! It’s scary when you max out your card isn’t it. When I maxed out mine, I realised if there was to be an emergency I would be in major trouble. Thank goodness for that lightbulb moment!
I choose a debt free life with more choices! I wish I’d realised it sooner! Hopefully, I will be able to finally say goodbye to my debt this year, fingers crossed. Great post, Hayley, I can tell you’re very determined to get rid of debt and that’s awesome! Way to go! xo
Eva @ Girl Counting Pennies recently posted…New Job, New Addition to my Family and my Huge 30th Birthday Party
Thanks Eva! 🙂 I’m sure you’ll be clear of debt this year Eva, things are on the up for you especially with your new job! xo
Exactly. I ignored my debt because it scared me. Now that I am aware of it I feel so much more in control.
Good luck in the upcoming year.
Alicia recently posted…Credit Cards Revisited.
Being in control is so important when facing debt. I suppose when you’re scared of anything, whether it be health issues or work issues, the only way to feel better is to tackle it head on.
I never knew how expensive furniture was until I had to furnish my own place.
Stefanie @ The Broke and Beautiful Life recently posted…When FREE Isn’t Worth It.
Tell me about it! I think I’d always shop around now and if I’m honest I quite like revamping second hand furniture these days.
It’s funny how you just get used to the idea of being ‘a little bit in debt’. It’s like just being ‘a little bit overweight/fat’. You trust yourself to deal with effectively. It’s not surprising then in both cases how ‘a little bit more’ escapes your radar (like you say “ignoring the meaning of”) until often many years later, when a threshold of ‘I can’t take this anymore!’ is reached and you’re either exremely debt-ridden or extremely overweight, or possibly both!
All the best for your debt reduction progress this year and beyond!
Wealth Tortoise recently posted…Getting Rich, Old Skool
Exactly! It’s only a little bit right? I guess everything in moderation is fine until you overstep that mark!
It’s not been a smooth road, but I’m SO glad we chose to make the decision to get rid of our debt. Even though we’ve got a long way to go, things are so much more peaceful, simply because we started and are staying with the plan. Excellent post, Hayley!
Laurie @thefrugalfarmer recently posted…Is 2014 Your Last Chance to Get Out of Debt?
Thanks Laurie! I’m so pleased that you’re finding peace nowadays in terms of your finances. It makes a massive difference when you can regain control. Here’s to staying with the plan Laurie! 🙂
Most people slip into debt. It’s one item. Then another. And a few more. For a period of time, it seems okay. Like you said, you were making payments and everyone else has debt so what’s the big deal. And that is the danger of debt. It lures you in for a period of time where it doesn’t feel bad and ironically may even feel good. I’s no big deal to watch your debt increase until one day it becomes a big deal. I’m glad you and your husband had your a-ha moment and knowledge and financial freedom are your new real bliss.
Shannon @ The Heavy Purse recently posted…Good Versus Entitled Life: The Unintended Consequences
Well said Shannon, that’s just how it is – it’s not a big deal until that day when it becomes a big deal!
I was lucky (?) to be attacked by the debt monster in my early 20s and learn that painful lesson relatively early. While a setback, it gave me plenty of time to recover and rebuild.
These days, the only debt we have is our mortgage (11 years to go!) and graduate school loans.
I expect to be in debt the rest of my life. But I’m ok with debt as long as it’s productive, e.g. mortgage payments on a comfortably cash-flow positive rental property.
Jack @ Enwealthen recently posted…Want to Save $100,000 on Your Mortgage? Improve your Credit Score
Congratulations on getting your mortgage reduced so much – only 11 years left is brilliant! I’m really glad you managed to recover your finances early on, it sounds as if things are on track for you.