It is January 2012 and you sit down to look at what you want to do this year, perhaps a nice holiday or a new car?
And slowly you realize that the debt that you were in in 2011 has grown and the £8000 is now £12,000.
It seems like all around you your peers, friends and family are enjoying the good life, holidays, expensive technical toys and fancy cars. They do not appear to be in debt so why are you?
Well, what I want to say is it is good to talk.
About 12 months ago when I really got the money saving bug, I started talking to my friends and family. I explained I was in debt and trying to pay it back, that my credit card took priority over a dinner out or an expensive weekend away.
Honesty breeds honesty and it is an important tool in changing your financial habits. I am not saying ask you next door neighbour or friend how much debt they are in. But often if you tell someone they will tell you. Then, you realize you are not alone.
You will discover that probably a lot of those around you are in debt too, you may even find that yours is minimal compared to those you envy. Someone might be scathing, (well they have been with me) but I do not care, this is my business and I am taking care of it. Some might even say they have not got any debt. Take into account they could be lying.
Often that Wii, Ipad, new car, or even the deposit on a house has been paid on a credit card. Did you know the average UK credit card debt per household for 2012 is £7,982. Well if that is the average, there are many people out there without debt and many with a significantly higher figure. Ask yourself as you look at those you compare yourself with, which out of these two categories do you think they will be in?
However, it has made me realize that I AM alone when it comes to paying everything back. Not many others are.
Paying back the money, makes me feel good
I will in 12 months be debt free, will they? I will be able to fall asleep and only worry about the mortgage, which I know I can afford.
In talking about finance with others, we stop pretending to be richer than we are, and therefore we stop feeling we are owed the new car, the ipad and the ensuite bathroom.
Talking is a good thing, and one I intend to continue to keep doing.
As a slight aside, I went out at lunchtime today and spent £2, nearly 27% of my weekly cash budget from Sunday, but I did get 3 tins of diet coke and a multi pack of crisps which should last me the rest of the week at lunchtime. You have got to love Poundland!.
Total left: £3.80.