Don't debt means don't incur any additional unsecured debt in any form. (A secured debt is one such as the mortgage on your home) Examples of unsecured debt are:
- Bank credit cards such as Master Card or Visa.
- Store credit cards.
- Travel cards such as American Express and Diner's Club -- you incur a debt when you use them even though the balance is due in a month.
- Personal loans or personal credit from banks (unless secured, such as a home mortgage or auto loan).
- Writing cheques when there is no money in the account to cover them.
- Using overdraft facility on cheque account - in effect a loan - rather than making a transfer from another account.
- Leaving paying rent or utility bills until after they are due.
- Borrowing money from friends or relatives.
- Student loans.
- Extending payments past the usual due date for personal services, such as home repairs, medical treatments, etc. once the services have been received.
- Unsecured loans for a business.
Back to Menu
So start to change. Just for today, put down the credit cards, put the chequebook back in the drawer if there is no money in the account, and don't incur any additional unsecured debt just for today. Tomorrow, resolve to do the same just for that day. Those of us who are recovering debtors generally find that in the beginning we need to focus on the here and now, and we always remember that we have to work this program one day at a time.
We all have to make major purchases in our lives, such as our homes, for which we can not have had chance to save up enough to pay outright. Because a house is an asset that usually increases in value then we can take the risk of borrowing most of the money we require. If the worst comes to the worst we can sell the asset and recover the money we have paid. But some of us become addicted to spending and to manipulating our debts to convince ourselves that it is OK to spend more. The mind-set that goes with this is being a debtor, and the things we buy will never ever be worth as much again once we have bought them as they have cost us. And also, once we have them we find they don't bring us all the happiness we crave and we look to spend more! When you have read this paragraph go to the top of the page and read it again.
Back to Menu
Most compulsive debtors will answer "yes" to at least eight of the following 20 questions.
- 1 Are you feeling desperate about the amount you owe on mortgage, cards and loans?
- 2 Do you find you unable to talk about debt without getting angry or defensive?
- 3. Are your debts making your home life unhappy?
- 4. Are you making your families life a misery by worrying about debts?
- 5. Are you under so much pressure thinking about the debts that it distracts you from your daily work?
- 6. Have you begun to worry what your friends think about you indebtedness?
- 7. Are your debts affecting you and/or your families reputation?
- 8. Has your self esteem been damaged because your debts cause you to think less of yourself?
- 9. Have you ever lied or given false information in order to obtain credit?
- 10. Have you ever made false or unrealistic promises to your creditors?
- 11. Under the pressure of your debts have you become careless of the welfare of your family?
- 12. Have you ever gambled in the hope of winning money to pay off your debts?
- 13. Do you ever fear that your employer, family or friends will learn the extent of your total indebtedness?
- 14. When faced with a difficult financial situation, does the prospect of borrowing give you an inordinate feeling of relief?
- 15. Does the pressure of your debts cause you to have difficulty sleeping?
- 16. Has the pressure of your debts ever caused you to consider getting drunk?
- 17. Have you ever borrowed money without giving adequate consideration to the rate of interest you are required to pay?
- 18. Do you usually expect a negative response when you are subject to a credit investigation?
- 19. Do you constantly promise yourself you will be strict with yourself over paying off your debts, but given in under pressure?
- 20. Do you justify your debts by telling yourself that you know what you are doing better than others and that you are only waiting for the break you deserve to get you out of debt?
How did you score? If you answered yes to eight or more questions if don't already have a problem with compulsive debt you are well on your way to having one. If this is the case then by taking this questionnaire you have taken the first step to change.
Giving up debt is not going to be easy but the alternatives are unthinkable. You can continue with your spending and borrowing leading to further despair, illness, ruin, family breakup and shame. For some, maybe you it leads to mental institutions, prison, or suicide.
Stopping and turning away from being a compulsive debtor will need all your strength and fortitude but it will lead to a chance for happiness, self-respect, family repair, healing, and personal fulfillment .
Stop, turn your back on your old ways, fight the compulsion to borrow and take the first difficult step towards day to day solvency.
If this is you, you should seek help. If you have pressing debts contact the Citizen's Advice Bureau (See Useful Contacts section). If you have a personal problem with debting but have not reached desperation then contact a counselor or life coach before it's too late.
Back to Menu