'normal' amounts of debt in this day and age

indesisiv

2ndTimeAround wrote: »

Gosh I always thought the whole 26k average wage in the UK was made up! I can't believe how small our income is competitively.
£21k income inc tax creds, 2 adults 1 child, renting, mid 30s. Currently £15.5k of debt, mostly plugging the gap where our income just isn't high enough. We live in a low pay/high housing cost area

2 adults working full time (40hrs a week) on minimum wage is just over £32.5k a year.

Don't forget that the average is just that .. an average. There will be people earning significantly more than that, and also the London premuims push up the "average". Also if IRC the average wage for the uk is around £28k now.

John-K_3

I’ve only borrowed money other than a motgage three times since graduating. £1,000 for a motorbike to get to work, £10,000 for a few months to buy a Lotus Elise before the annual bonuses were paid and a few thousand for two years in order to get a £10k dealer contribution on a new car.

I felt thoroughly miserable on the last of these, owing someone some money, so intend never to borrow again.

Owen1991

I'm 27 with a Salary of £21,500 and savings of around £25,000(hopefully be a homeowner by 30, not in any rush as I only pay £40 a month for military accommodation) and never really had any debt.

I have a £500 overdraft that I don't think I've ever used.
I have 2 credit cards both with £2,000 limits that always get paid off in full at the end of each month.

sourcrates

Owen1991 wrote: »

I'm 27 with a Salary of £21,500 and savings of around £25,000(hopefully be a homeowner by 30, not in any rush as I only pay £40 a month for military accommodation) and never really had any debt.

I have a £500 overdraft that I don't think I've ever used.
I have 2 credit cards both with £2,000 limits that always get paid off in full at the end of each month.

Good man, stay that way, what branch of the military are you in ?

Owen1991

sourcrates wrote: »

Good man, stay that way, what branch of the military are you in ?

Royal Marines (one of the few sensible ones :rotfl:), getting a nice pay rise to £26k ish next year which will help a lot to :beer:

sourcrates

Owen1991 wrote: »

Royal Marines (one of the few sensible ones :rotfl:), getting a nice pay rise to £26k ish next year which will help a lot to :beer:

Ha ha yea, I know one whose been outa the service 20 years, tried to settle down, but couldn’t hack it, been a gun for hire off Somalia, Afghan, syria, now on ships in the Indian Ocean as security, likes the action too much me thinks.

Big respect for you guys, stay safe.

rocksta

27yo inc £20,000/year
debts-
CC/loan/mobiles £5300 @ 100pcm
HP car £5000 ends oct 2021 (48 months) @ 119pcm
student loan £6500 £10 deduction every payday
iMac on finance £1200 0% until feb 2019 pay currently £100pcm
total - £18,000

quite a bit of debt hoping to have this all paid within the next 5-7 years already work full-time but considering a 2nd job part time 8 hours a week and using the £200 a month to pay straight towards the debt

Owen1991

rocksta wrote: »

27yo inc £20,000/year
debts-
CC/loan/mobiles £5300 @ 100pcm
HP car £5000 ends oct 2021 (48 months) @ 119pcm
student loan £6500 £10 deduction every payday
iMac on finance £1200 0% until feb 2019 pay currently £100pcm
total - £18,000

quite a bit of debt hoping to have this all paid within the next 5-7 years already work full-time but considering a 2nd job part time 8 hours a week and using the £200 a month to pay straight towards the debt

I wouldn't class the student loan as debt really, and I definitely wouldn't be paying it off early with your current income.

Bluegreen143

Haven't read all the replies yet. We are 29 and 34 with one child, one on the way and one income (I'm a stay at home mum). We have:

- a mortgage, with about £128,000 left on it
- credit card debt at the moment totaling £3,850ish
- I have a student loan but don't have to repay on that at the moment as not working
- We also owe MIL £3,500 left from when she let us £5,000 towards our house deposit, but we're under no pressure to repay that any time soon.

For me, and my comfort level, there's no acceptable level of unsecured/consumer debt to have. My aim is to get the credit cards cleared ASAP and then repay MIL. We have never borrowed money for a car and never intend to - we just drive whatever we can afford to buy in cash (we are luckily a one car family as husband drives a work van during the week).

EDITED to say husbands's income is £26k, I do a few bits and bobs at home for around £150-200 a month at the moment.

lookstraightahead

I do not think it is the debt itself, rather the choices it takes away. I am nearly 50 with no debt now, at all. But the last 15 years whilst clearing it and going through a divorce etc has stopped me making any choices. In my twenties and early thirties I spent too much on absolutely nothing, add a baby and a divorce and that just escalated. I am happy now. Lovely husband, daughter grown up, about to buy a house, no debt and sorting out a pension. Debt to me of any sort (other than an affordable mortgage) is a shackle. Putting anything on credit makes me feel like I am burning my fingers. It means I have old stuff, but at the moment it is good enough.