MoneySense for Schools: Getting into debt

My MoneySense

Understanding debt

Getting into debt

Debt isn't something that only happens to certain kinds of people. You will find out about a number of people from different backgrounds whose lives have been affected by debt.

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Video 1Faisal: I had a well paid job, and I bought this new car for myself bit of a reward really. But then, out of the blue, I lost my job… I fell behind with the repayments. I have a new job now, but it's not so well paid. I still owe £7000 on this car.

Video 2Naomi: I run my own hairdressing business, had to borrow some money to rent and equip the salon. I was just about doing all right, but then I fell ill for quite some time, and I lost many of my customers. I'm worried that I might lose my business, unless I can find £3,000, but I've already borrowed up to my limit.

Video 3

John (voice over): We decided we wanted a better quality of life, so we bought a house in the country. We pushed ourselves on a big mortgage of £180,000, and the monthly repayments are quite high, but it's ok. I've got a good job in town, even if it's a long commute, and Teri managed to find a job locally.

John: The great news is she's just become pregnant, we're really happy. But that means there's just one salary to live on while she's on maternity leave, so we have to look at how to budget our money so we don't fall behind with the mortgage payments.

Video transcript

RBS The Royal Bank of Scotland

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My MoneySense

Understanding debt

Getting into debt