One of my greatest challenges over the last year has been to come to terms with the fact that for a long time I have been spending far more than I earn. Hubby’s salary fluctuates due to overtime (or lack of it) but we have tended to think it is our right to continue to spend what we haven’t earned and all will be well with the world. Well about a year ago, I realised that all wasn’t well and if I wasn’t careful something very nasty could happen. Since then I have cut up all credit cards and been in dispute with various companies over the amount I can pay back in any single month. For a while that meant dozens of phone calls, some of them threatening every day from people in various call centres around the world, but thankfully arrangements have been made with all of those companies and all money will eventually be paid back. In fact my debt has already fallen by £8000, quite an achievement even if I do say so myself.

When you get into this kind of position, the banks and their charging policies really don’t make life easier for you. I have never expected to be able to take the bank’s money for nothing, but at times the charges caused me to go further into debt, resulting in a kind of downward spiral of borrowing, charges, more borrowing etc. A number of websites are now devoted to advising on money issues, including the reclaiming of bank charges and thousands of people in this country are reclaiming those charges from their banks. Yesterday I scored a victory against a multinational bank and am to receive back nearly £1800 in bank charges taken in the last 6 years. They do not admit liability and continue to say they are right, but will give me the money anyway. I could get more by taking them to court but actually I think I’ll call it quits.

My attitude to banks and the services they provide has changed significantly over the last year. They do not get you to pay off your overdraft with a loan as an act of charity, and they do not then encourage you to build up a further overdraft as another kind act. They are making money out of this process and whats more, the people who have more money and never go overdrawn are benefiting from this, because my charges subsidise this process. No one wants to give up ‘free’ banking, but I would rather pay a small monthly charge for using the service than pay £150 in one month for going overdrawn when it is their charges for the previous month that caused the problem in the first place.

I should use all of the money to pay off more debt, but this will make the difference between a family holiday and a week spent looking out of my window at my own garden. Therefore we are off to France for a week in July, thanks to the bank and the refund of my own money!