What's going on here? Personal debt

somethingcorporate

BobQ wrote: »

Assuming you can pay it off in a few months true but taking on long term debt when rates are low could be a dangerous strategy (particularly when experts are talking of rates rising)

Yes, but people rarely act rationally. They buy things when they are cheap and in easy supply without regard for tomorrow.

Ronaldo_Mconaldo

catwoman73 wrote: »

It could be people like me.

Over the past few years I have amassed about £30k in savings. I could have overpaid my mortgage, but it is on a lifetime tracker with an interest rate of less than 1% so that would be a stupid thing to do.

However, I have just spent about £45k on a house extension so now have almost no savings, a £10k personal loan and about £4k on 0% finance from Ikea for the kitchen. I also have a small car on 0% PCP, so am actually now about £25k in debt

It could definitely be people like you. In one paragraph you say you have savings of £30k and in the next you say you actually have no savings.

catwoman73

It could definitely be people like you. In one paragraph you say you have savings of £30k and in the next you say you actually have no savings.

Did you miss the part where I said I spent my savings extending my house? The fact I managed to save £30k in a few years demonstrates my financial discipline and reasonable disposable income.

At the end of the day you will have paid full price with no discount.

The price was the same whether I paid in full on my debit card, or took the credit. Bizarelly taking credit also got me free servicing which wasn't available if I paid in cash. Taking into account loss of interest too, paying in cash was the most expensive option. Makes no sense, but there you go.

No job is 100% secure, plus you never know if an illness or accident or any number of things will hit you.

In the very unlikely event that I get made redundant, I will receive a pay off that will pay off all my debts and my mortgage. If I cannot work due to illness or accident, I will receive full pay for six months followed by half pay for another six months.

Mistermeaner

Do you need a husband?

Dandytf

Carl31 wrote: »

does this include mortgages?

I was think that, does the secured debt graph include mortgages.

Thankfully i've avoided the secured loan generation.