high income and debt

Thrugelmir

Deleted User wrote: »

Not necessarily bluffing; their attitude could be that if the repayments on the debt are manageable, then why worry. Everyone's different.

Only takes one of the 3 D's (Death, Divorce or Distress) to tip the balance. Then very rapidly the situation changes for the worse. You only have to see the number of people that require debt counselling to understand the extent of the problem.

crystal_pixie_2

Thrugelmir wrote: »

Only takes one of the 3 D's (Death, Divorce or Distress) to tip the balance. Then very rapidly the situation changes for the worse. You only have to see the number of people that require debt counselling to understand the extent of the problem.

Totally agree with this. As someone who is a high earner and was married to another high earner debt doesn't seem to be an issue.

We are now divorced and it is this debt that is causing all the problems. I realise that we are in charge of our own actions, but it is sometimes too easy to get credit when they see you are high earner.

I decided after the divorce that I needed to get rid of this debt millstone. By ignoring it for too many years it is going to take me far longer than I thought to get it all paid off.

harrys_dad

Even if they are not borrowing any more money (which seems unlikely) a debt of £30,000 will be costing about £4000 a year to service. This is coming out of taxed income, so is equivalent to posasibly as much as £7000 a year of basic salary (the OP's work colleague earns £60,000 a year and is probably paying 40% tax plus NI, although nay not be if two are working in the houesehold). Ask your colleague OP if they can remember what they spent that £30,000 on, and if it is worth £7000 a year of their gross salary for the rest of their lives?