'normal' amounts of debt in this day and age

Potbellypig

dawyldthing wrote: »

I'm sure this site is therapy sometimes lol.

So I'm 31. I don't have any debt now. Took out a £24k mortgage over 10 years and cleared in in 2 and a half as I didn't like having it round my neck and it kept me awake (and no, I'm not joking about it keeping me awake).

I've never had a loan (other than my student loan which currently stands at £23k but it's rare I pay any back as only once have I earnt over £17k, but might be due some sleep in back pay so might be giving them a wack if it materialises) only had my mortgage. Have 2 credit cards but clear them if I spend upon them each month.

Mums kept me grounded as we never had a lot but she always gave me what she could. My biggest wake up was after she split up with her husband and I was about 10 she spent around £1k on Chrustmas and it took 3 years to pay back and I thought then debt wasn't for me. Mums always bought second hand too which helps imho.

I've built up a bit of savings but the main reason this is is I don't drive. I spend probably £600 a year on the bus getting to work and I'd guess £500 on transport seeing friends/ leisure/ holidays.

I don't blame folk driving but I do think in a lot of cases it's a needless expense. One of my friends spends I'm sure she said £200 a month on the renting of the car (where they rent it then swap it after 2 years without buying it), so she spends more on the car than what I ever do on transport never mind petrol, road tax, mot, car repairs, any problems. And I really think it's the car and house maintainence that's one of the biggest debt problems. Or the keeping up appearances. I know on the home buyers report it said the kitchen needed renovating. It's still functions 6 years so what's the point in wasting probably several months in getting it done and for what?

Just seen on my timeline someone is selling a 2 day old sofa from dfs for £350 as 'it doesn't fit in the room and they won't take it back' and I honestly think it says it all.

So you have had a loan then.

dawyldthing

Potbellypig wrote: »

So you have had a loan then.

Yeah student loan but not the conventional loan ie to do the kitchen up or buy a car if that makes sense

Potbellypig

dawyldthing wrote: »

Yeah student loan but not the conventional loan ie to do the kitchen up or buy a car if that makes sense

What's the difference?

a_silver_lining

One difference is it didn't affect me getting a mortgage. Also if you earn lower amounts you don't repay it, and it gets written off later in life, many people do not repay it in full.

Potbellypig

a_silver_lining wrote: »

One difference is it didn't affect me getting a mortgage. Also if you earn lower amounts you don't repay it, and it gets written off later in life, many people do not repay it in full.

So it's still a loan then.

a_silver_lining

Well I think what the original poster meant, rereading it now, is that they see it as different from a 'conventional' loan. And I agree, and think there is a difference. Both in the reason for, and the type of loan it is. So it's a loan for an eductation, rather then a want. I may be wrong in their interpretation though. If you're being pedantic, then neither the oriuiinal poster or I said it wasn't a loan, did we?

Novice_investor101

I have a student loan & I ignore it as it isn't going to cause me any sleepless nights. No bailiffs will come knocking if I can't afford to pay it & it will be written off at a later date regardless of whether I pay anything or not.

In fact, I very legally upped my salary sacrifice into my pension in order to drop below the threshold for paying it. & That is perfectly ok. No debt collector has ever come round asking questions about it & they never will.

I'm lucky to be on plan 1, so its low interest, but I don't pay any attention to it at all as it's not something I need to worry about.
Many people feel the same way. It is not a burden or a constant worry like other types of 'conventional' loans. They are the types that can ruin your life & drag you down like a millstone round your neck of they're unaffordable. A student loan, hopefully, enabled you to build your life & your earnings capacity which in turn means you can afford a mortgage (another type of "good" loan) and a life without financial stress.

missplant

25 and partner 26 earn 42K between us, bought a house last year with the mortgage at £148,000 with the help to buy loan (plan on re-mortgaging the loan in 2 years )
car on finance at £300PCM
my credit card £700
partners £2,100
savings £2,500

jarshay

alan_d wrote: »

I've just read the whole thread. Seems a common theme (apart from the debt) is people borrowing to buy cars.
I'm 42 and wife is 43, and earn around £80k combined. We had about £20k unsecured debt a few years ago, but now down to under £5k which will be gone by the end of the year (and is 0% anyway).
In our case the debt has nearly always been used for house improvements, and a few years ago to buy a caravan, which means dirt-cheap holidays!
I'm down to about £20k left on my mortgage, which should be paid in 2-3 years :j
Currently saving for a new kitchen, which will be £ouch.
Although we have 3 cars (long story!), they are 11, 14 and 18 years old with an average of 180k miles on each, and are some of the oldest in the street. I don't see the point in borrowing thousands to buy some flashy car to try to impress the neighbors. I maintain and service them myself and spend less in a year on all 3 than some people do in a month or two on HP/PCP finance (eg the Tesla owner above!)

I’m not trying to impress my neighbours, friends or colleagues at all - the Tesla is honestly cheaper for me to run on my 200 mile daily commute as I have always HP/PCP cars then have a petrol bill on top. To be fair, I would still be paying the same amount on travel if I had another car.