Just how rife is unsecured debt?

kindofagilr

jonnybeegood wrote: »

According to the news/media, unsecured debt is rife and on the increase and yet I feel so alone in my attempts to clear our debts. We currently have unsecured debts of over 40K, however after having our LBM we are now knocking off 1k a month.

Apparently for people in our category ( 30's with young children) the average debt is something like £18K. I can't think of anyone else within our friendship group or family who has debts like that, let alone high debts like ours!

Is unsecured debt really so common? If so then it must be the best kept secret!! For years I have felt ashamed of our debts thinking that we were part of a very small minority!

I know that debt is relative. We have a joint income of 75-80k per annum and debts of around£40K. Is our situation more common that I previously thought??

We are also early 30's, 2 small children, we have just over £34k debt and our annual income is only £36k

I don't know anyone in real life with debt that high but there are people here with it that high xx

PoorGuyNextDoor

On the face of it you wouldnt think i had any at all. I earn over £60k a year(varies a bit) and yet iv got myself into £45k of debt. Im paying off £1400 a month which knocks £1k pcm off the amount i owe so iv got 45 months to go assuming i dont overpay that. I do however have money in my property so when i get debt free(aiming for in 30 months or less) i wont be starting from scratch. My partner hasnt got a clue. My parents are bankrupt so not like they taught me well.....although im one of the younger ones on here at 25 so i should be debt free and a very impoartant (and expensive) lesson learnt by 30!!

Smodlet

You're 25 and earn 60k a year? Can I get a ticket to your universe, please?

Were I that young and earned anything like that much, I doubt I would be doing half so well as you.

S x

suki1964

Smodlet wrote: »

You're 25 and earn 60k a year? Can I get a ticket to your universe, please?

Were I that young and earned anything like that much, I doubt I would be doing half so well as you.

S x

So this poster is wrong, yet you support others in their debt ?

Those that have absolutely no intention of paying a penny back?

BullShark

In 3 years I would have walked away from just over 70k of unsecured debt (mixture of credit cards and car/loan finance that have exceeded 6 year default date and a sizeable business debt that hasn't been pursued for a long time)

Not proud of this and looking to troll just circumstances I find myself in.

Puddylove

I've got debt, and although it's not a problem at the moment, at £6k approximately, on a salary of £50k plus, it only takes an illness or accident for it to become so. I do have savings, but might need them - who knows?

I do believe in personal responsibility though - it's not up to the banks or credit agencies to police our borrowing; if I maxed out my credit cards I'd be in £35k of debt...

I budget, pay off debt, live frugally and save. But the key point is whether your debt is going up, or down every month - as long as it's going the right way, you are doing ok.

lessonlearned

Smodlet wrote: »

You're 25 and earn 60k a year? Can I get a ticket to your universe, please?

Were I that young and earned anything like that much, I doubt I would be doing half so well as you.

S x

It's the easiest thing in the world to not only spend up to your income level but beyond it.

£60k??? I could blow that in an afternoon, without any effort at all. :rotfl:

I don't think it matters whether the debt was frivolous spending, bad luck, ill health - whatever. AS Puddylove says, what is important is that it is going the right way.

No point torturing yourself, what's done is done. Just do what you can and pay those debts down. Once that's done then start saving.

There's loads of really good helpful advice on these boards. I'm not in debt but I hang around because it keeps me on track.

I could spend for England given half a chance.:D I have a little splurge every now and then but then it's back to the budgeting and belt tightening.

It's not so bad, it doesn't have to be boring. I try to be creative and imaginative with my budget so I can still have fun and treats without compromising my future financial stability.

lumpyspaceprincess

In my experience, people don't seem to think they are in debt until it goes pear shaped. I know a lot of people with credit cards or loans who live in their overdrafts & who don't consider themselves in debt because it's ticking over just fine.

stingey

Running a bit late on this thread, but yeah I would agree that high debt is common. People don't take into consideration credit cards and car loans as debt, or even mortgages, just loans. People just don't talk honestly about it.

I listen to people tell me about going on holiday and how they can afford this and that, then later drop into the conversation how it was all put on a credit card. I know of one couple who had a large ppi payout, paid down their debt and promptly ran it all back up again because they were too impatient to wait to save. Within a year they were at the stage of putting the weekly shopping on a credit card.

Tbf we have been bombarded over the last 30 years or so to consume and have access to easy credit. It can be hard to say no, especially when adverts are encouraging us to 'keep up with the Jones's'. Our society is built on debt and it's become acceptable. And for some it's the only way to survive,

I think sometimes if we looked at the monetary system honestly and think of the cons of credit instead of the instant pro. Take mortgages for example. If you have a mortgage, your classed as a homeowner. Well your not really. The bank owns the house, you just pay the loan on it for say 30 years, then the deeds are transferred into your name. Your classed as a 'homeowner' to give you access to further credit (loans for home improvements etc) and are a better bet for not defaulting. You've got a 30 year loan to pay. The Brucie bonus is you've got a house to live in afterwards.

It's all how you view debt, yeah it can be used for something good, like business start up. But it becomes a problem when you can't service it. I think we will start to see changes in attitudes to debt people are beginning to realise it's not all good.

chelseablue

I'm 33 and recently paid off my credit card, but I do owe £228,000 on my mortgage