What is 'acceptable' debt now?

Ginger_Nuts_2

Was just talking with a few in work, and after a longish conversation just began to wonder how much 'acceptable' debt is. I suppose really nil is perfect, but in a real world, what sort of figure is the 'norm'. Leaving out mortgages, is there a sort of figure that doesnt raise any eyebrows. Most that I know seem to think around £10k is about 'norm'. Aside from my mortgage i'm not near that, no finance or loans to talk of, couple of 0% credit cards that I change balances between but thats it.
Am I one of the few

Sagz_2

You are not alone Ginger Nuts.
To me (apart from the mortgage) £0.00 dept is acceptable.

I get really ratty, don't sleep and am worried sick if I can't pay the credit card of in full at the end of the month.

I guess everyone has their own 'comfortable' level of debt.


Everyones different, thats what makes people so interesting!

Bambywamby

There is no such thing as the norm, I think "a lot" of debt is relative to your income.
Somebody on income support would find £5000 of debt crippling, someone with an income of £30'000 a year may not.

Snaggles

From an underwriting point of view, about 50% of your annual income.

From a personal point of view, acceptable debt to me is debt that is planned, budgetted for, affordable, and for something like a car, or home improvements rather than a flash holiday, luxury goods, designer clothing etc. As I say though, that's only my own personal feeling, not meaning to sound as though I'm judging people who do have debts for those things.

fermi

What is "acceptable" depends on your circumstances. It all depends on your means.

I hesitate to owe even a few hundred while I have relatives that have liabilities into the £100Ks.

Cazza

In the past I would say most of the people I spoke to through my work had a car loan and a few thousand on a credit card.

I wouldn't feel happy with that, as I have a "thing" about credit cards, although I do have a car loan, the only debt OH and I have, other than our mortgage and my SLC loan.

notenoughcash

Once I finally get rid of the last of my debt my 'acceptable' amount of debt will be a big fat 0. You never know what's around the corner and my approach to buying anything is now if I can't pay cash for it I won't have it

**Amy**

notenoughcash wrote: »

Once I finally get rid of the last of my debt my 'acceptable' amount of debt will be a big fat 0. You never know what's around the corner and my approach to buying anything is now if I can't pay cash for it I won't have it

This is what I am thinking. Except for a mortgage I wont want to get into debt that I wont be able to pay off the next month.

I cant bear the thought of having money going onto debts again, it really depresses me how much a month i spend out now to try and clear them!

Ginger_Nuts_2

Of course i'm not trying to judge anyone who does have debts, it's almost inevitable that you accrue some through life, just wondering what sort of level is now become the 'social norm' that in converstion wouldnt even raise an eyebrow. IS £30k eyepopping but 5K sort of ho hum, so be it.

**Amy**

Ginger_Nuts wrote: »

Of course i'm not trying to judge anyone who does have debts, it's almost inevitable that you accrue some through life, just wondering what sort of level is now become the 'social norm' that in converstion wouldnt even raise an eyebrow. IS £30k eyepopping but 5K sort of ho hum, so be it.

But as others have said you cant really judge an acceptable amount as what i acceptable to one person may not be to others due to circumstances.

I could sit here and say, oh yes £10K is acceptable, but someone else may think £20K is because they earn more than me/are able to pay back more etc. etc.

x

laineyc_2

For me apart from the mortgage, I think a car loan is the only thing I would be happy to have a loan for. The level of that debt definitely depends on income.