‘I WAS ASHAMED AND EMBARRASSED’

Maddy Alexander-grout, 38, is the founder of myviprewards.co.uk and lives in Southampton with her husband James, 40, and their two children, Ben, six, and Harriet, three.

Until I began university in September 2002, I didn’t really think about credit cards.

Up until then, I’d always lived within my means. I had a Saturday job in retail and only spent the money I had.

But at the freshers’ fair during the first week of my media studies degree, there were lots of stalls offering students credit cards and overdrafts.

I was 19 and naive, so I signed up for three credit cards and two overdrafts, and all I could think was, ‘I’m getting free money.’ In total I had access to £25,000 and I quickly began to eat into it.

At first I used the credit cards to buy clothes, eat out or treat my friends. I’d buy new outfits every time I went out and pay the tab in bars and restaurants for everyone.

I lost track of how much I’d spent and didn’t even open any bank letters that arrived. I spent the lot in just 12 months and soon the banks were chasing me, as once the minimum payments increased I couldn’t meet them any more.

With no money left in the bank I took on a bar job and worked in a call centre alongside my studies. I could finally make the minimum payments on the credit cards – but then I didn’t have enough to pay rent or buy food so I had to borrow money from my friends.

I simply couldn’t keep up with the card repayments, so as letters from the bank, debt collectors and bailiffs fell through the letterbox each month, I simply pushed them under the doormat, burying my head in the sand as I did so.

In the third year of my degree, more in debt than ever, my mental health began to suffer. I couldn’t concentrate in lectures and sometimes I was so anxious I barely slept.

Every time I used an ATM I’d expect the police to appear and arrest me for owing so much money.

Seeking help

In June 2006, just a few months before I was due to graduate, I dropped out of university, got myself a job in recruitment and found myself the only place I could afford to live – a disgusting, tiny bedsit, with a shower that didn’t work. I was so ashamed and embarrassed about my situation and my family was completely unaware of how bad things were.

I agonised over my situation, asking myself over and over how I’d got myself into this position. I needed help, so in January 2008 I went to the Citizens Advice for help.

They helped me with a budget and I began following a 50, 30, 20 plan. This meant I should spend 50% of my wages on everyday