After careful consideration, I decided that I would sleep easier at night by consolidating my credit card debt with a personal loan. If I hadn't taken that step, my $9,000 credit card limit would eat at me until it would ultimately put me into a pine box sooner than I should there.

My first Visa application with a major bank (in Australia) was $1,000. When I asked for an increase, they raised my limit to $3,000.00. Wow, I was having a field day! It didn't take long to get to the upper end of my limit. My biggest downfall was when I asked for more and they looked at my overall financial position, then allowed me a limit of $9,000.00. In one sense, I am grateful that they approved that because I happened to need a lot of it for bills and the children's expenses for school, etc, but on the other hand, it gave me a false sense of security and I started to spend like there was no tomorrow.

Each month, the interest would accrue, and each month I would keep on increasing my visa balance. My own funds were not increasing by any means, apart from one pay rise in that time. Eventually, I had to admit that I was in over my head and that I am not good with money. What makes this even more shameful for me is that I have an accounting background and I'm terrible with budgeting, I let my emotions dictate how I use my money. If I feel bad, I'll buy something to cheer myself up. I eat out a lot instead of making my own lunch for work. If the kids want something that we hadn't planned for and it's a nice day, sure, let's go to the shopping mall. Inside, though, I was dying. The fear of our home being sold started to eat at me and kept me up at night.

One night recently, I needed to know how much my Visa account would be debited so I could leave sufficient funds in the account - my visa card is linked with my bank account, all under the same bank. I allowed for up to $200 to cover interest, although it came to about $130. It showed me how little I knew about my true financial position. When I called the bank to ask how much the interest would be, I came across a very understanding and compassionate officer and we talked about how I can make my life easier. She recommended that I consolidate my debt and reduce my card limit. At first I was overwhelmed by what would be involved but they made it sound so easy. Over the telephone I was able to organise a personal loan and a reduction of my limit. They told me that they would send the papers to the local branch of my bank

• 1
• 2
• next page >>

---

Add your voice

Know something about Get out of debt?
We want to hear your view. Write now!