Is this really as bad as my friend thinks?

michelle2008

guesswho2000 wrote: »

Disagree with this, with the 0% offerings available on credit cards these days, it's still profitable to hold "debt" even with interest rates as they are.

I just said this is how people react to.the various types of debt - you surely agree that the general public frown on massive credit card debt?? Most people assume it is a result of overspending rather than sound financial management.

I was simply trying to rationalise her friends reaction.

bobmonkeydog

house repairs, car repairs. maternity and not being able to make ends meet when we were on a much lower income

guesswho2000

michelle2008 wrote: »

I just said this is how people react to.the various types of debt - you surely agree that the general public frown on massive credit card debt??

I was trying to rationalise her friends reaction.

Fair enough and yes, the first impression wouldn't be good in many people's eyes, however, just pointing out that not all debt is bad, whatever form it's in, as long as the terms are favourable

Newyorkdreams

My personal opinion is that it's none of their business! Keep strong, stick to your plan and be proud that your dealing with your debt. Some people are so judgemental! I haven't shared the true extent of our debt with anyone as it's no-one's business. We have learned and we are paying it back and that is all that matters.

Newyorkdreams

I also wanted to add that it doesn't matter how much you earn, you can always overspend your budget if you don't have good financial sense or manage your money well - your desires and wants just get more expensive!

bobmonkeydog

SOrry that this has been posted twice!!Seem to have messed up somewhere!!

guesswho2000

Newyorkdreams wrote: »

I also wanted to add that it doesn't matter how much you earn, you can always overspend your budget if you don't have good financial sense or manage your money well - your desires and wants just get more expensive!

Indeed, never a truer word spoken!

Money_maker

14K is shocking and I wouldn't have mentioned it by number to anyone. Interest free and low interest is good. Having a structured repayment plan in place is great. Well done for that.

I do worry about your attitude towards it and feel that it's a situation you may fall into again by seeing the words 'interest free' or 'low interest rate'. Debt is a burden (been there myself some years ago) and no amount of spin on it would make it look good.

Be positive that you are sorting it out but remember that bigger wages should equal no debt rather than bigger debt.

JakeGreen

bobmonkeydog wrote: »

8K is interest free
the remainder is fixed at 6.9% for the life of the balance.

It sounds like you're ok to me and you know what you're doing.

With 60k income, 8k interest free and the rest at 6.9% you've got the situation under control and your debt is reducing every month so no problem.

katy_ann

I personally dont see 14k as a huge problem, you needed the house repairs etc and you have good deals on the cards. You are over paying them each month and have a good enough income to pay them.