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When your savings are more than your credit card balance, can you call yourself debt free?

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Comments

  • enthusiasticsaver
    enthusiasticsaver Posts: 16,294 Ambassador
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    I think you could call yourself debt neutral when the savings equal the debt.
    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
    Save £12k in 2026 Challenge £12000/£7500
    365 day 1p Challenge 2026 £667.95/£296.46
    Click on this link for a Statement of Accounts that can be posted on the DebtFree Wannabe board: https://lemonfool.co.uk/financecalculators/soa.php
  • Ogden
    Ogden Posts: 32 Forumite
    That!!!8217;s good enough for me!
    Nearly debt free
  • MERFE
    MERFE Posts: 2,133 Forumite
    Part of the Furniture 1,000 Posts
    My savings are more than my debt now. Last CC 0% at £2657, savings over £6000. I don't consider that debt free but it is a nice feeling to know it could just be all paid off. By the time it is all paid we should have saved almost enough for a house deposit.
  • Ogden
    Ogden Posts: 32 Forumite
    That must be a nice feeling
    Nearly debt free
  • Dobbibill
    Dobbibill Posts: 4,200 Ambassador
    Part of the Furniture 1,000 Posts Mortgage-free Glee! Name Dropper
    I would agree if your CC balances are all at 0% and your savings exceed the amount of debt then 'Debt Neutral' covers it nicely.

    Well done.
    I’m a Forum Ambassador and I support the Forum Team on the Budgeting & Bank Accounts, Credit Cards, Credit File & Ratings and Energy boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.

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    Just be better than you were yesterday.
  • Fireflyaway
    Fireflyaway Posts: 2,766 Forumite
    Fifth Anniversary 1,000 Posts
    No you are not debt free. You have debt so you can't be! You have savings so why not pay off the debt then you will actually be debt free and have savings?
  • Mnd
    Mnd Posts: 1,699 Forumite
    1,000 Posts Fourth Anniversary Name Dropper
    We are debt free.we've got about 6k on interest free cc and 83k in savings
    No loans or mortgage
    No.79 save £12k in 2020. Total end May £11610
    Annual target £24000
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