I always thought I was OK at managing my money before credit was available to me. I spent what I earned, and that was that.
Then soon after I turned 18 I received a call from my bank. The guy wanted me to come in for a financial health check.
We met and he told me it would be for the best if I took out a credit card ‘for safety reasons – as you should never shop online using a debit card’.
I dutifully signed all the forms and when my card arrived in the post I felt flush with all of the ‘money’ suddenly available to me. I had no real idea what an APR was – but I now had the means to treat myself.
I started buying slightly more expensive makeup, or a new outfit for a night out, confident that I could pay it back over a few months and not overdo it.
But during that time I was in a pretty dark place. My relationship was unstable, I was suffering from severe anxiety and depression and my self-worth was at an all-time low. Buying things was my go-to pick me up, which quickly spiralled into a full-blown shopping addiction.
I’d pop into town several times a week and spend between £50 and £100 on clothes, make-up and anything that made me feel pampered. It wasn’t unusual for me to drive to the Trafford Centre and drop £200 just because I needed cheering up.
Soon my card was maxed out, as was my overdraft. The same guy from the bank called again. This time he told me that I needed a consolidation loan to pay off my credit card and my overdraft, and he’d even throw in an extra £500 ‘because it’s nearly Christmas, so you’ll want to be able to buy good presents’.
I had a wardrobe full of clothes and a make-up collection to rival James Charles, but it wasn’t worth the stress I felt.
I fully trusted that this man had my best financial interests at heart and was completely naive to the possibility that this wasn’t the advice I needed.
This cycle continued. I jumped into an even worse relationship and by the time I was 23 I had amassed around £13,000 of debt and was on my second consolidation loan.
I had a wardrobe full of clothes and a make-up collection to rival James Charles, but it wasn’t worth the stress I felt.
Although I’d never once missed a payment, I’d also never made more than the minimum payments either. I knew that missing payments had consequences and I knew I had to do something before things got out of control.
I googled whether or not I could declare myself bankrupt and spent every spare minute researching interest rates and finance until I actually understood the situation.
I was able to shop around for the best interest-free credit cards and shift most of my debt to those while concentrating on paying off the rest as quickly as I could.
The addiction I’d once had to shopping suddenly transformed into an addiction to seeing my debt go down. I sold everything I could on eBay, started mystery shopping around my full-time job and set myself a challenge to have as many no-spend days in a row as I could.
I’ve experienced a few setbacks, such as losing my job in the same week everybody in my block of flats got evicted so that they could develop it.
I signed on to Universal Credit, but the Department for Work and Pensions (DWP) wouldn’t give me a penny before my rent was due – only an emergency loan, which of course charged interest. I used a 0 per cent credit card instead, which meant I got nothing as I ‘had access to money’. Luckily I wasn’t out of work for long.
In five years, I’ve paid off around £10,000 and am due to be completely debt-free in 11 months time. Since 2014, I haven’t paid a penny in interest and I have considered every purchase carefully.
One of my biggest financial milestones was building up an emergency fund so that I never have to fall back on credit again. I did this through selling things, switching bank accounts and using apps that offer different types of cashback for minimal effort.
The one good thing to come out of all of this is that I am now the friend who knows about money. I can advise my pals on how to avoid making the same mistakes I did, how to properly manage their debt and what on earth compound interest is.
I can’t wait to be completely debt-free, and hopefully in another five years I’ll have loads of money in the bank instead.
Debt Month
This article is part of a month-long focus in November all about debt.
Scary word, we know, but we're hoping if we tackle this head on we'll be able to reduce the shame around money struggles and help everyone improve their understanding of their finances.
Throughout November we'll be publishing first-person accounts of debt, features, advice, and explainers. You can read everything from the month on the Debt Month tag.
If you have a story to share, a topic you want us to cover, or a question that needs answering, get in touch at MetroLifestyleTeam@Metro.co.uk.
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MORE: Debt Diaries: My start-up left me over £100k in debt aged 22
source https://metro.co.uk/2019/11/25/debt-diaries-i-racked-up-13k-of-credit-card-debt-from-shopping-11163704/
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