Am I debt free?

Gordon_the_Moron

I owe money on two credits cards at 0% and my Natwest current account (which I don't use any more) is £99.99 overdrawn (no interest on first £100) but have savings that would cover these things more than 5 times over, do I count as debt free since the above are technically debts but they're only there to make me money.

:money:

was_bankrupt

strictly speaking i'd say they are debts because the liability exists. The overdraft, for example, could be called in at any time. I think it's good you are being clever with your money.

Credit products may soon change though as the banks suffer with their bad debt provisions.

Something to watch out for.

Gordon_the_Moron

Yeah they could be called in at any time, but even if they do I can pay it, I would just stop earning interest on the savings. I'm actually quite surprised Natwest haven't recalled the overdraft of £99.99, the account has not had a penny more or a penny less in it for about 18 months and unless they do call it in or change their terms to charge interest on it then it can stay like that for 18 years for me.

Anyway I may not be technically debt free (but I bet I'm still a debt nerd for knowing enough about them) but I'm happy with things the way they are. Shame nobody else I know my age has such sense with money.