Almost a third of us worry that we won’t ever be free of debt. Woman investigates
Understanding finance and how to budget and manage our money is a life skill most of us weren’t taught before entering adulthood, and while it might make us yawn, it’s a crucial part of today’s world, especially with the current cost-of-living crisis. Half of Brits are in debt, with the average person owing almost £4,000, and a third of working families could not afford to pay their rent or mortgage for more than a month if they lost their job – meaning they could be one pay cheque away from losing the roof over their heads.
It can happen, as we put countless amounts on credit cards and take out loans, and more often than not, the natural instinct is to bury our heads in the sand and hide from the overwhelming burden. But with the right guidance, advice and support, overcoming debt is possible. Here one woman shares her story…
‘IT WAS A TOUGH LESSON TO LEARN’
Samantha Brook, 48, is a learning coach, writer and founder of the Happiness Club, a platform helping people to live happier lives. She lives in Ipswich with her partner, 48.
I can remember when it all started. I was 18 and took out a store card, feeling excited by the prospect of buying myself new clothes without the worry of paying for any of it yet. Of course, I was naive. I told myself that I’d pay the money back eventually but after racking up £300 on the card, it was just the beginning of a very downward spiral.
Soon after that first store card, I took out a £600 loan to buy myself a car. By then I had a part-time job at an optician’s so I could make small monthly repayments. But when I started university in 1993, I became irresponsible. I had a student loan, two student overdrafts and a credit card, and although I continued working part-time, most of my money went towards socialising with my friends. Given the option of paying off some of my debt, or buying myself a new dress to wear at the weekend, I always chose the latter, telling myself I’d pay some of my debt off next month instead.
As the years passed, I began borrowing more money to spend on myself, socialising, or to pay off older debts. By 2010, I was overwhelmed and drowning in £18,000 worth of debt. I knew I had a problem. It was time to face it head on, so I attended Debtors Anonymous, where I learnt how to make a spending plan
