Continuing on with the ‘Road to Debt’ series here is the second installment you have all been waiting for! By the way, If you missed my previous post you can catch it here.
A quick note as well whilst I am at it. I apologise that this instalment was not posted as planned. I have been very busy these last few weeks and haven’t had much time to blog. I even missed the second birthday of Debt Advice Blog, two years already can’t believe it!
Part Two Heading into Debt again…
Having escaped my first lot of debt, for a couple of months I was quite well behaved in that I didn’t take on any credit and I was debt free. Something happened though, something that was the start of a very slippery road, my credit rating was normal again as the last of my previous defaults disappeared from my credit file.
I logged on to my Barclays Bank account, they had seen my credit rating was normal again and at the bottom of the screen in the offers section they said ‘we can off you an overdraft of £1000’. Alarm bells should have gone off in my head but they didn’t, would I learn from my previous mistakes? Of course not, click click and I had an overdraft just like that. My second debt disaster was starting to unfold.
It wasn’t long before I was stuck in my overdraft and making the same mistakes I had worked so hard putting right. It seems I had forgotten about what it was like to be in debt, instead enjoying the easy credit once more. It was time to get a loan I thought, I was going to be doing my driving test and also I needed a loan for a car, so I thought. I applied with Natwest and was approved in minutes for a loan of £12,000.
That was it, the debt was beginning to get out of control again. Did I realise this at the time? Did I heck, I ignored it just like before. Why was I borrowing so much for a car? Why not buy something cheap? I don’t know and I can’t change that now.
A new way to get into debt
It wasn’t that long before I entered all new realms of financial irresponsibility, I discovered online casinos. I started gambling with credit which looking back was just plain ridiculous. I thought nothing of spending 100’s in a night gambling, and this coupled with my attitude towards money was only going to end in disaster.
As it turns out gambling was a new vice. Something I would later need to sort out and did. When I ran out of money for gambling, there was no shortage of payday loan lenders willing to step in and lend me money. Of course back then they didn’t really perform affordability checks, and rarely did they do any sort of credit check. This was to prove to be my downfall and the final nail in the coffin for me financially.
Ignoring the Problem
For a fair few months I carried on ignoring the fact that my whole life was falling apart around me. I was gambling, I had racked up 1000’s in debt but worst of all none of this was being noticed by myself. Ignorance was definitely bliss but eventually something would have to be done about this mess.
At last I realised that enough was enough and the situation in front of me was a complete disaster. How else can you explain so much debt with nothing to show for it? Where did all that money go? How stupid must you have been to get into this mess? Well the answer is simple, a financial fool and money just do not mix.
Sorting things out, kind of
For a while I have half heartedly attempted to sort things out but really nothing was changing, except the fact I couldn’t get any more credit which was a good thing. I stopped gambling and made small payments towards some of my debts. It wasn’t really till just before I started this blog in September 2012 that I started to take things more seriously, and even then I could do better.
In the next instalment I will discuss my plan for getting out of debt and all the joys of dealing with the companies I owe money to. Until next time thanks for reading!