Everyone’s situation is different. However, I think it’s safe to say that debt and financial struggle is a pretty common phenomenon these days. I was reading a post over at Becoming Minimalist about getting out of debt and was reminded of my own situation.
I’ve written about this before and about the situation of being an English University student. I take out a loan of around £6,500 a year for university (around £3,200) and a “maintenance loan” (meant to cover food, but only just covers rent). Over the three years of my degree, that will add up to around £20,000 of debt.
I’ve never had a money-earning job. I don’t have a credit card, I don’t pay for any monthly magazine subscriptions. My weekly budget of £20-25 covers a fortnightly shop, presents, seeing friends and experiencing spirituality.
I’m not careless with money, but there is little I can do about the debt until I have full accumulated it. After my three years, it’s likely I’ll work [mainly voluntary I think] for a couple of years and then go on to Postgraduate study where, you guessed it, I can get in more debt. It seems somewhat pointless to try and pay off some of the original £20,000 when I’ll need to save up money to actually find a place to live after study.
Everyone’s plans are different, everyone’s situation is different. What’s your financial situation like? How to do you deal with the trials and tribulations of debt and spending?
When was the last time you took control of your finances? Can you imagine just putting 5% more of your earnings into debt repayment and how wonderful it will feel to see that debt slowly but surely decrease? I love reading the blog over at A Piece of Wood, because it gives me hope and inspiration that I’ll be able to tackle my debt and see it decrease.
How could you simplify your debt this month? Do you have a budget? Have you shopped around for the best rates in banks and building societies? Have you any particular goals set in realistic time (eg. pay off £100 of debt in a month)