Take Control Of Your Cash And Lose The Financial Guilt Pangs

Sydney Morning Herald

Wednesday March 30, 2005

Interview by Christine Long

Welcome to Crunchtime, our new column that talks to people who have found themselves up against the financial wall or in situations that required drastic action. They'll tell you what they did, how they survived and share any lessons.

Dilemma Jade Barclay's credit card debts had reached the point where, at just 24, she felt weighed down by guilt and stagnation.

Her wardrobe was full of wonderful clothes, but she was scared to open her bank statement.

After a year of university studying to be a fashion designer, she found it was not what she'd expected and so she felt ``a little bit lost".

Her words ``I had talked my parents into lending me [$8000] to go to America on a summer camp. Under the agreement I would have to pay them back. I felt pretty bad about it because they had never been overseas, yet they were affording me the opportunity to go, but I also felt I needed to go to work out where my future

lay.

``By the time I got back [five months later] I had decided what I wanted to do and I was determined to pay them back while I was at university. I studied public relations and worked part-time in retail.

``My parents live about 150 kilometres from where I went to uni so I couldn't really stay at home. I had to rent independently and I could barely afford to cover myself let alone save anything to pay them back. They kept saying not to worry until I got a full-time job. Then once you get your first job you are earning peanuts, anyway.

``I think [having those debts] took away my feeling of independence. I was tied down. I just didn?t feel free. I didn?t travel or do anything spectacular while I was at uni because I felt as though I had to pay off my last trip before I could go on another

one, even a small interstate trip. I [had] been quite competitive in triathlons over the years, but I sold my $2000 racing bike to pay my credit-card bill and I sold my car to buy a fabulous dress.

Taking control

At that point - with nothing left - it was time to take control.

Jade's parents gave her her first financial break when they agreed to waive the last of the $8000 loan she had incurred to take the trip to America.

``When my parents gave me that second chance I thought this really is my chance to do something. I'm completely debt-free aside from my HECS. I don't have a credit card. I don't have anything I am paying off. I don't have a car.

Her next step was to seek professional advice. ``I went to the financial director of the company I work for and he sat down with me and we worked out a budget. It is only the end of the first month, but I?ve saved my savings and managed to pay for my

rent.

Now, Barclay says, she feels as if she is getting back in control of her life.

``Even though I?ve had to sacrifice and plan ahead it almost feels like I've achieved more with my pay cheque than I ever had. I have paid for everything and I don't have to feel guilty about buying a present or paying off a lay-by.

Now I know where everything is and I even opened my bank statement for the first time.

Interview by Christine Long

Do you have a story of a bitter financial lesson or a gamble that paid off? Let us know at crunchtime@mail.fairfax.com.au and if your story is chosen you'll win Noel Whittaker's Superannuation Made Easy.

© 2005 Sydney Morning Herald

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