How are you managing paying back your loan? Did you end up having to scrape every penny together? I took out a loan when I had a great job and got laid off the next year..enter trouble!

Thus the bad news that has plagued generations the borrower becomes the lender's slave. It is a bad situation to borrow and then discover you lack the means to repay - which of course is the best argument for a combined financial outlook that includes moderate credit and significant investment and savings. I know it's not always possible, but...

Yeah, I learnt a lot from that experienbce I must say The hard way but still, saving and investing now, along with paying off the old loan.

I think this is probably a lesson that we have all had to learn as we've grown older... but at least for the most of us... we learn it! lol

Indeed and I'm happy about that too I must say. Taking responsibility of your own financial situation is one of the most important things to do really isnt it.

The thing is, you never really know when bad times will fall. So, I guess you just have to scrape by if that happens. Also avoid taking loans for "frivolous" things you might not really need.

Luckily I dont have a huge loan so I can afford repayments quite easily.
Still it takes a chunk of my cash every month and that really bothers me, I just cant wait until I pay it off!

First thing I tell married (or soon to be married couples) is NEVER borrow more than the smallest of your two salaries can pay. For unmarried folks, I would say work off half your present salary. That way you can bank the extra (PLEASE bank the extra) and you are covered when or if bad times fall.

For those of us who didn't follow this advice. Worked any job you can to keep your payments current. If possible, contact your lenders and tell them what is going on. Some will defer payments for a couple of monthes until you can get back on your feet. Save every penny that you can. Write down everything you do spend, and it will help curb your impulse buys.

When you are finally free, DON'T REPEAT THE PROCESS .

Good advice kelkat! I totally agree. In fact I think you should always live off of one spouses salray and bank the other.

Too bad someone wasn't around to give us the same advice. Now we are clawing our way to debt freedom and we WILL NOT look back.

For us, it is a penny at a time. With each penny saved, we are one step closer to being free. Right now we are down to the mortgage. What a great release it was to only owe one institution.

We are teaching our kids not to borrow. Not ever. Not for anything.

Having recently moved there was a pressure to buy new things to fill our new home. Some we have the money to purchase, but when I heard abotu these 'other' things we could get on credit - I had to say, "I'll happily live without them until we've saved enough to purchase it outright."

Chances are pretty good that by then - we won't even like it anymore.

I have only taken one loan so far, and I pay on time every month. But there are times I find myself doing without some thing to do it. It is rough.

Let me back track a minute. Borrowing is okay - if you have the money in the bank already. Then you are using the lenders money for nothing (especially if you get a low interest rate or no interest loan). It's even better when you can have the money sitting in a high interest savings account!

Technically though, I don't think of this as credit - you know what I mean?