Is it ok to have some unsecured debt??

worriedwilf

Hey

I am a dedicated DFW and have about 21mnths until I am debt free ( excluding mortgage). I want to pay off ALL of my unsecured debt but at the same time I know that I will feel so much differently about it when it down to a reasonable amount.

At its highest it was 30K+ which was way over the top and whilst I could afford the payments it was clear that It needed to be sorted!!

I will feel more relaxed when I owe under 10K and will feel that this is a more 'normal' debt load. Perhaps it is this mentality that got me into a mess in the first place!!!!

Do my question is..... Is some unsecured debt ok??? If it's maangeable???

HappyMJ

Yes some debt is OK...as long as you still have the items that you bought on credit....such as a house, car or furniture. A loan for a holiday isn't really a good idea.

matttye

My attitude these days is only get into debt for 'needs' not 'wants.'

katejo

For me quite the opposite . I feel uncomfortable with any debt other than the mortgage . 10k would give me sleepless nights . I currently have 1.5 k on an interest free credit card but that will be cleared before any interest is charged. It was for new windows in my house .

Southernman

Any debt makes me feel nervous, anxious and sick with worry.

If i was in debt at the moment i'd realise it was restricting me from doing things i really enjoy such as going on holiday. I wouldn't be able to have any pleasure until the debt was gone.

That's just me but i'd feel like i was spending money on something that could clear my debt off 6 months sooner.

ilovelondontown

I completely concur with Matttye- if you have to get in to debt, it should be because you NEED to get the car/boiler/leg fixed. Not because you WANT a new wardrobe of clothes, a luxury holiday and have a bad habit of putting "treats" on a credit card to pay later- a take away here and a glass of wine there and it's ££££ on a card before you know it.

I'm climbing out of debt (mostly) built up from WANT, but I'm on the way to having somewhere in the region of nearly £10K of credit if I NEED it.

Nowadays I get greater satisfaction out of seeing my debt fall than I ever did seeing it rise out of the irresponsible spending....

Daveylacey

I think it's not ok to have any debt. Debt = misery, and you go out and buy more things you don't need to cheer you up because you are debt, sinking yourself further in debt! If you can't afford something TODAY then you can't afford it! Simple.

bargainbetty

worriedwilf wrote: »

Hey
At its highest it was 30K+ which was way over the top and whilst I could afford the payments it was clear that It needed to be sorted!!

I will feel more relaxed when I owe under 10K and will feel that this is a more 'normal' debt load. Perhaps it is this mentality that got me into a mess in the first place!!!!

Do my question is..... Is some unsecured debt ok??? If it's maangeable???

Honestly, I think it is that mentality that got you (and me, and millions of others) into debt. The attitude that it is perfectly OK to overspend to the tune of thousands, because we refuse to wait for things, or just have what we can afford.

The average personal unsecured debt is somewhere around the £4-5k mark, I think. Just because it's become normal, doesn't mean it's a good idea.

Then again, it is your life, your money, your choice!

Stewart_78

Debt is enslavement. Simple as.

nrsql

I feel that the only debt that you should have is if it allows you to have a ready cash level or you can get more with the money than the debt interest.

Within that reduce the most expensive debt first.

So unless you have an old mortgage no debt is probably OK and you should strive to reduce it in line with keeping a cash level for living/emergencies. Best is if you can pay off debt but retain the facility, that allows you to reduce your available cash reserves.

System

Personally I would say it is that mentality that has got you into debt. One day you could have lost your job or your income and find that you can no longer comfortably afford the repayments. I personally would rather not be in that position.