I racked up £18,000 in debt with my spending addiction – how I dealt with it

MORE people are struggling to keep their budgets under control as the higher cost of living takes its toll.

Samantha Brook, 48, from Ipswich, Suffolk, was thousands of pounds in debt five years ago.

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Since then, she has managed to get her financial situation under control and says others can do the same as her.

The learning and career coach says: “I think publishing is an addiction. It's a cycle and you beat yourself up and you feel bad afterwards.”

Samantha first started having problems with debt when she was 17 and had to spend money to support friends. The problem quickly got out of hand.

In her early 30s, she was given a clean slate after her mother intervened and paid off all the money she owed.

But to Samantha's dismay, she gradually started getting back into the red, spending money on meals and clothes she couldn't afford.

As a self-employed person, she also spent the money she should have saved to pay her taxes.

By the time she was 43 in 2018, she owed £18,000 in credit cards, overdue bills and unpaid taxes to HMRC.

She says: 'I promised I wouldn't get into debt again. I was really ashamed.

“I was really worried about money and just felt hopeless. I felt like there was no way out.”

She guided Debtors Anonymous, a twelve-step program for people who want to recover from compulsive spending and debt.

The group works in a similar way to other addiction forums, where you share details of your experiences.

But it won't help you pay off debts directly like other charities and organisations, which can help you negotiate repayments with creditors or write off debts through a form of insolvency known as IVA.

“The program helped me understand where my addiction came from,” Samantha explains.

Samantha then decided it was time to get a handle on her situation once and for all.

She made a decision to get out of debt and carried it out by paying back at least £1 a month to all her creditors.

She says: “I was determined to pay off my debts. The most important thing is to take action – even if it is small at first.

“And be honest with the people in your life. Sharing it and getting it out of your heart can be a huge relief instead of keeping secrets.

Samantha also contacted StepChange, the debt free charity, and they helped her create a budget and calculate her disposable income.

She adds: “They have model letters that you can use to send to creditors and ask them to freeze interest rates.

“I was able to negotiate a settlement amount for some debts.

“I did get calls from people looking for money, but once I started paying off debts regularly and making appointments, they diminished.”

Samantha figured out which debts were her priority and paid them off first.

These are usually classified as taxes, mortgages and other essential services such as utility bills, which could land you in jail, lose your home or have your utilities shut off if you don't pay.

She says: “Most of the money I paid was for HMRC.”

Samantha paid off around £350 a month and would also use any work bonuses to pay off debts.

She also transitioned from self-employment to employment, which allowed her to take better control of her finances with a steady income.

Gradually she had lost the amount she owed and had reduced the outstanding debt to £7,000 by 2020, when an inheritance allowed her to pay back everything she still owed.

After this, Samantha managed to build up some savings, although the cost of living and a period of unemployment had her dipping back into cash.

Now Samantha has three credit cards that she pays off in full every month, but says: “I am aware that I have to watch my spending by being hard on myself.

“I still struggle with overspending – it's a work in progress”

Outside of work, she founded the Happiness Club happiness-club.co.uk, a group that aims to promote mental wellbeing.

How to pay off debts

If you feel like your money situation has gotten out of control, one of the first steps you should take is talking to someone from a free and trusted organization.

Citizens Advice is a national organization with thousands of volunteers who can help you take action.

Find your nearest branch via tool on its websiteor contact them by phone on 0800 133 8848.

Charities StepChange also offers free advice. Contact them via their website stepchange.org or call 0800 138 1111.

Making a clear budget of your income and expenses, including bills and credit repayments, is crucial to getting a handle on your situation.

You can then start to calculate how much you can pay back and how long it will take to pay off the debts.

Always tackle priority debts first – this includes rent, mortgage, utility bills, child support and taxes.

Depending on your debt situation, you may be able to take advantage of the Breathing Space program, which freezes your interest and any fees or collection activities your creditors may charge for 60 days.

We also spoke to someone who had £50,000 in debt but now has a six-figure business.