Seb Brantigan, 33, says his perception of money and debt massively shifted after racking up £22,000 of debt by the time he was 22.
Seb, who is from Suffolk, took out his first line of credit at 19, which was an overdraft for just under £2,000.
He wanted to set up his own social media agency and needed money to help him pay for online courses and to attend conferences to learn business skills.
Seb said he then found it relatively easy to take out credit. He took out credit cards and other overdrafts but does not remember there being many guardrails or checks in place to see if he could afford to take the debt on.
“I wasn’t on a particularly high-paying job either at the time. I was on just over minimum wage so it’s not like I had a particularly high income at the same time [as taking the credit out],” he explained.
It wasn’t until Seb’s debt levels had reached its peak at £22,000 – using various overdrafts and credit cards – that things started to turn, and he begun being rejected for more borrowing.
It was then he realised he needed to change.
Not wanting to give up his dream of owning his own business, he begun to tighten his belt and push through with achieving his goal while trying to pay off his debt.
He said: “I had to work harder and cut back on my expenses. I really minimised what I was spending in terms of other things in my life which I could control, like drinking or going out for meals.”
He also spoke to family and friends for moral support, something he said seriously helped.
“Just letting them know that you’re in a tricky spot and having that moral support is important. It can get you through those difficult times,” Seb urged.
It took Seb six years to pay his debt off, paying off £400 a month, as well as cutting back on what he called “luxuries” like going out for dinners multiple times a week, going out with his friends to the pub.
He also started networking more to get more clients on his books.
Seb had contacted one of the credit card lenders to ask if there was any way they could help and they wiped £300 of interest off the account straight away, which made it slightly more manageable to repay.
By the age of 28, around five years ago, Seb had paid off all his debt and said since then his mindset towards credit became very different.
“I only take on a small amount of manageable debt, if I know, I can pay it off,” he said.
One rule Seb follows now when making a large purchase is he asks himself if he can afford it twice over.
Slowly, Seb’s credit score – a rating that represents your credit risk and financial reliability to lenders – returned to a high level, and he was able to get a mortgage.
Three years ago, he was able to buy his first home with his partner. He has also successfully co-founded a digital marketing agency, DBSS Digital.
Ella Raithel, 26, from St Neots, is someone else who built up debt in their twenties. She says some of her issues stemmed from being embarrassed about talking about owing money.
Ella said because she had always seen any sort of debt as bad, she felt she couldn’t share with anyone that she was struggling as her debt began to mount at the age of 24.
Debt comes in many forms such as a credit card, mortgage or a car loan. Sometimes, owing money is not necessarily bad news, such as if you have an agreed credit limit on your credit card, and pay it off every month in full.
This can actually help build your credit score, but research from financial education charity Money Ready, shared with The i Paper, found 37 per cent of UK adults thought all debt was bad, with 46 per cent incorrectly believing all debt negatively impacted a credit score.
“I was looking at getting day loans out last year to pay off my debt, not realizing it can make things worse,” Ella added.
A day loan, also referred to as a payday loan, provides someone with immediate cash. These loans come with very high interest rates.
Ella’s debt was at its highest when she became engaged and soon found how expensive a wedding was.
She had to pay £7,000 towards her wedding alongside her everyday bills and a car she got on finance which she now regrets getting.
At the peak, Ella was in £11,000 of debt. She said it scared her to think how easily she had got into that amount of debt and that was a wake-up call for her.
“I thought to myself I need to slow down, because I can see myself spending too much and just getting myself into more and more debt,” she said.
The thing that helped Ella to begin taking control of her debt was signing up to financial coaching sessions through Octopus Money.
A financial coach is a professional who helps someone develop money management skills, as well as provide financial guidance and education, though they do not provide financial advice.
She said: “My coach talked with me about what I was dealing with, helped me normalise it, and it made me not shy away from it.
“After I started being more open [about my debt], I felt confident to say to my friends I can’t hang out, I can’t afford it this month. And it wasn’t taboo.
The 26-year-old set up a rainy-day fund and began to cut down on her spending, focusing solely on paying back what she owed.
She also spoke with her credit card lender who let her reduce her monthly repayments to make them more manageable and now has £800 left to pay off before her debt is cleared.
