Why are you in debt?

[sasguru]

Inspired by another thread I wondered why so many (presumably highly paid contractors) are in debt?

[BrilloPad]

My only debt is my mortgage. Which I only need as I got fleeced in the divorce. But who doesn't?

[chris79]

Probably standard of living escalations.

Nobody earning £5-20k+ after tax a month should really be in debt unless they have bought a huge property, or have some form of addiction to fund.

[DiscoStu]

Well, it started when I was a poorly paid permie and was in the process of splitting up with an ex. As it was amicable and she earned about half what I did I walked away with pretty much nothing.

Then I was skint and had to buy a car, new furniture, etc etc.

Well on the way to clearing it now though

[MPwannadecentincome]

£5-£20K per month after tax - how do you get 20K per month after tax as a contractor?

[Mich the Tester]

Bought a pretty normal house when I was a permie; that's my only debt.

[ctdctd]

£5-£20K per month after tax - how do you get 20K per month after tax as a contractor?

5K

[Mich the Tester]

5K

You should take up testing if you're that hard up.

[expat]

Well, it started when I was a poorly paid permie and was in the process of splitting up with an ex. As it was amicable and she earned about half what I did I walked away with pretty much nothing.

Then I was skint and had to buy a car, new furniture, etc etc.

Well on the way to clearing it now though

Snap.

[Sockpuppet]

"Technically" I am in debt.

I have an overdraft of £3000. Now I say technically becuase there are many times that sitting in myco account as retained profit.

I don't want to clear the overdraft as it interest free so no rush to clear it. The half a % I'm earning on myco savings is better than nothing.