There's *lots* of people in "serious" debt.

Gemmzie

I totally agree red. Because of interest rates, house prices etc. a huge percentage of people in this country like very much to the maximum of their income. Disposable income has now become debt repayment for many and there's nothing disposable about it.

PixiePie

ZTD wrote: »

Debt is good in some circumstances. To grossly oversimplify. If debt is for production - then it is good debt. If it is for consumption, then it is bad.

You said what I wanted to buy couldn't work out how to lol thank you

angelavdavis

Seems to me (from personal experience and reading the experiences of others on here) that debt is only ever a problem when you can't afford to repay it!

I had a total of £38k worth of debt a year ago and was earning £49k. I wanted to add to the debt by completing my MBA (funded on the cc) and was obviously going to pay it off eventually with the payrise my employer had been promising me for two years (that never came!). It only became a problem when I realised I couldn't continue meeting the monthly payments and wasn't able to remortgage as I was still tied up in a fixed rate.
Up until then, I would simply have added it to the mortgage and thought - phew!

So, doesn't matter if its £500 or £50,000, its serious to the individual concerned if they are struggling to meet payments.

Crown

PixiePie wrote: »

I'm not picking, but isn't this some of the trouble though and the overall attitude that is part of our current 'debt culture'? What happens is the city trader (touch wood) is run over in a tram accident, looses both his/her legs and half an arm, and their sight, and therefore looses their job? Therefore they get no bonus that year. Therefore they can't pay off the loan, and there is no compensation as they should have looked where they were going and not stepped out in front of the tram. Then they are in huge huge debt with no chance of ever paying it off (maybe).

I know this is an extreme case I've outlined above, but just because you earn a lot of money, shouldn't mean 'oh it's ok to have debt' surely it doubly means you shouldn't as with a bonus of £K a year you are more able than a lot to save a hell of a lot and buy very nice things outright (Hypno, your's would still cover a very nice car (nice in my eyes) outright, or a lovely super duper holiday).

Until we accept as society and as a nation that debt just is not good no matter the circumstances, for everyday life, then this will just carry on.

(totally agree with the bits I cut from your post btw )

Im in total agreement with you. I am not saying that its ok to have debts if you earn a large salary although it amazes me when some people post what there SOA although I would never criticize as even posting on here means they are trying to resolve the situation.

I honestly belief that we live according to our income and not enough of us think ahead to the future before its too late. If for example I was now to become a trader and earned a a nice Salary with a decent bonus I doubt I would move from my modest Semi in East London. Society is obsessed with Celebrity and we like idiots follow try to keep up with the Joneses!

The MSE Bug has truelly bit me and I was careful with money before I got into debt and now im damn right tight in some ways lol :rotfl:

Teacher2301

I agree with what everyone has said so far...and ...

My dad has never owed a penny except to Abbey when he took out a mortgage for £3000 in 1969 - he paid it off - my parent's never moved -they're still there today and they have no debt - shame I didn't learn eh! I have chatted endlessly to my wife about our debt's and why haven't we got nice new cars, why can't we afford oversea's holidays, why do we have to pinch and save everyting - even though I earn a good salary. My wife's response - we have a fanatsic son (he is) and everyone else we know must be in loads of debt paying off loans to enable them to drive nice new cars and holidays and we own our cars and who wants to travel anyway - UK is lovely this time of year!

newmum1

I think how serious debt is depends on the individual i know someone who has no debts apart from the mortgage and occasionally dips into their overdraft at the end of the month and gets really frustrated for doing it, and does not like 'owing' money.

Madnessa

In the olden days life was probably more predictable because of society norms:

Go to school, get married, husband gets job and wife gets pregnant, buy house and work hard, retire, die. My grandmother bought one pair of high quality shoes every year of her life and that was it. I don't know anybody from my generation that does this. I already have a collection of over 20 pairs.

Now people have so many options, which is a really great thing, but it means money is so easy to get and spend that a lot of people get carried away. It's hard not to go along with it. And so many people just get deeper and deeper in debt and when they realise how bad it is it's shocking and they think it's hopeless so they keep putting off doing something about it.

I don't know a single person except my Dad that has an emergency fund. Neither do I yet and before I didn't care and now I find it scary and can't wait to get some savings together!

I'm sure if I hadn't found this site I would have ended up in a much worse situation. I wonder how many people this site has saved from the debt trap.

My ex-boss had two houses (one in the centre of London) and a well paid job yet he could't afford to go out and have fish and chips, he had to sell the London house and remortgage his family home as he has a luxury lifestyle for 10 years and now it will take him another 10 years to make up for it. But I don't think his true LBM has come yet as just after remortgaging he booked a holiday to Florida for the whole family. I told him about this site but don't think he's been on here yet.

joeblack066

I agree thats it's very personal to people's circumstances. My debt is approx one quarter of a year's take home pay, but because of (comparitively to where I live) high rent, and complications with my shared residency for my DD age 10, (my ex gets all the money for her and I have to find the money to buy all that she needs and try to work around the arrangements) I still struggle to meet repayments and work full time in a stressful job and am skint all the time. Thankfully my grown up kids have lived within my frugal budgets all their lives and apart from a car on finance that my eldest has, which he can comfortably afford on his salary, they don't do debt. If I never manage to leave them anything else, I hope that this legacy will be worth a fortune to them in years to come.