Part 4 - spending to keep up

This is a series of articles labelled from #1 to #9 which chronicles how I went from being a fanatical young saver to a pathetic spender, and then finally paving the way for financial success.

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In Part #3: Seeing My Family Experiencing Poverty, I developed an unhealthy resentment towards money, I hated the idea of saving, I didn’t spend much as I did not have the money, whenever I did come by some money I just spent it on Designer clothes and Top Gear magazines.
I can remember after enrolling into university we had stands of credit card companies in the main hall trying to sign undergraduates to open a bank account or credit card, there was a Barclaycard Stand, an MBNA Stand, a NatWest Stand, these kinds of events took place quite regularly and I remember signing up so I could get the freebies which were either vouchers or toys of some sort.

I never expected to get a credit card as I only had a part time job but to my surprise I was given a Barclaycard, and MBNA Card and a NatWest Credit Card with a combined credit of £6000. I thought I had hit the jackpot, when my friends saw this they themselves got credit cards and it was like getting free money.

I can remember how my life changed after getting access to credit cards, I started spending money online, I started eating out, I started to really go out to enjoy myself, I bought the best clothes and we even started competing against each other so we we’re spending money just to keep up with each other, it was an enjoyable time but also a foolish one, I had nearly maxed out my credit cards before I graduated and just thought I could pay off the balance when I got my job.

Fortunately I did get a job quite quickly in a bank and the pay was relatively good, it was the first interview I went for and I got the job, for the first time I started to get a real salary into my account, a large chunk of my money was going towards servicing my debts but I still had breathing space to enjoy myself and pay for the debt.

We lived in a council house and we were renting from our local borough, as my mum was quite elderly we did not have to pay much. The government were offering discounts to buy houses and my brother thought it would be a good idea if we bought the property at a discount; we would share the mortgage payment and as house prices were going up it seemed like the right thing to do. As my brother had debt he decided to buy the house in my name but we would both make mortgage payments.

Back then anyone could get a mortgage, I remember filling the form mortgage application form in which was self certified (subprime) and getting approved very quickly. Within a space of 3 months after graduation I found myself as a homeowner with mortgage.

Unfortunately not everything turned out as planned, my brother got married and moved out which meant I had to pay the rent and I now found myself in a position where I was using all my income on my mortgage, debt and travel and living expenses, it felt like I was working to just live, pay check to pay check.

In Part #5: Disaster Strikes, read how my life is turned upside down as disaster strikes and I have no money which makes me go further into financial despair and debt.

Full Series Index

#1: Great Early Saver

#2: Having Money Taken Away From Me

#3: Seeing My Family Experience Poverty

#4: Spending to Keep Up

#5: Disaster Strikes

#6: Getting Married

#7: Absolute Financial Despair

#8: Facing Up to my Problems

#9: Laying the Foundation for Success