What is a dangerous level of debt?

[Deleted User]

BritRael wrote: »

Lots of good comments and advice above.

My attention was drawn to this OP comment.
I'm in my 50's and I can honestly say that taking on debt has never "been a fact of life" for me. In my early career days my income was very low (I was by far the lowest earner in my group of friends) and I was always skint, but it never entered my head to borrow. If I didn't have money to buy something, I didn't get it. Simple.
I was in my late 20's before I got a credit card, but even then I used the same principle; only ever buying with it what I would have normally paid for in cash - always paying it off in full each month.

These days though if you even want to go to college you've got to borrow i.e. student loan.

[Deleted User]

ajharris wrote: »

It is difficult to say what is a dangerous level of debt, as long as you keep your job then you should be ok. In your situation you should be ok as looking to pay off as much as possible. The problem is that you are being charged interest on your debts and interest rates are going to get a lot higher after the election.

I am no financial adviser but have you not looked at remortgaging to pay off all your debts? You have a lot of equity in the house. Personally I have no debts and and it feels really good. I am in my late thirties and make sure that I save every month.

I'm on such a good mortgage rate now I dont want to change !!!!

[Deleted User]

WASHER wrote: »

I absolutely agree with the above post. I'm now debt free but have been 40K in debt (many years ago low, paid every penny back but it caused me great stress and alot of heartache in my marriage. ) I simply couldn't function if I owed money, I longer have a card but my OH does and its frozen in the freezer, its in with the peas but he doesn't know that!, we have savings, but if my washing machine broke tomorrow, I would buy it on the card as its a 0% card and repay the whole balance on pay day.

Tixy - I agree with you too, remortgage isn't a good idea - actually it can be quite dangerous, you add the debts to the mortgage and then run up debts again, happened to me, and happens to many on this board - OP - please do not think about consolidating - it rarely works.

Dib-dab, well done for acknowledging your debts when you did, you will be debt free one day, it doesn't matter if it takes you 1 year or 6 years. If you ever need moral support, you get it here, it can be tough but well worth it.

Certainmly seem to be some mixed opinions about debt. I understand how some people have had bad experiences and dont want any debt now.

As I mentioned in my other post, you cant really go to college w2ithout getting into debt these days? Or buy a house?

Tixy

I think most would consider student loans and a mortgage 'okay' or 'safe' forms of debt. Yes in an ideal world it would be better to manage without, but generally most of us can't.

I think its other debts that people think are not inevitable or not 'a fact of life'.
For example it easy to think its normal and reasonable to buy a vehicle on credit, but saving up and only buying what you can afford makes far more sense, and should be manageable for most of us. A large number of people who post SoAs on here are in negative equity with their cars/car finance and cannot afford the monthly repayments but are trapped as they cannot afford to sell either.