is everyone in debt, or just everyone my missus knows?

[Oli]

Well, i wasn't in any debt until a couple of hours ago when i applied for a student loan for my last year at uni. Fortunately it's only for tuition fees, so it's just over £3k. Cleared off my credit card a couple of months ago, but i don't really make a habit of putting stuff on it- same kinda thing as Jonathon, just put petrol on it and pay it off to keep the credit rating ticking over.

I know some people who's spending habits just baffle me... paying for holidays left, right and centre, buying cars (not even buying them for a sensible amount- paying a few hundred and then wondering why it breaks down after a month). And a slightly worry one was: "Finally i'm debt free now, got my credit card paid off"... "yea, i took out a £7k loan, and the rest of the money i'm gonna use on a holiday to cuba and on some clothes".... she wasn't even joking either, taking out a loan to pay off a credit card is apparently clearing debt these days  :roll:

I like being Mr Frugal with my money :) Need to get some summer clothes though... getting too hot for jeans, combats and band tshirts!

[Philly Q]

And a slightly worry one was: "Finally i'm debt free now, got my credit card paid off"... "yea, i took out a £7k loan, and the rest of the money i'm gonna use on a holiday to cuba and on some clothes".... she wasn't even joking either, taking out a loan to pay off a credit card is apparently clearing debt these days :roll:

I have a friend who regularly does that, she's forever "consolidating" credit card balances to take advantage of those 6-months-interest-free offers (which is sensible enough, if you're in that position).  But she also does the loan thing - and takes out more than she needs to spend it on other stuff.  :roll:

She always thinks as soon as one balance is paid off, that's the end of the problem - on some level she seems to believe that she'll never actually spend more money ever again.  And she's always shocked when she finds she has a new credit card balance to pay off.