Would you class this debt free?

Sncjw

Hi 

So I've been a careful user of credit cards and never paid interest and never took out a balance transfer. 

I recently used my Barclaycard rewards abroad and paid it off in full to avoid interest. 

I also have an m and s card that my husband and I have used for when we needed it. So we have worked out in December we won't have any credit card payments to make as they will be paid in full and the m and s card is on 0 percent until next October. 

So the only thing we will have is the mortgage. So I want to know would you class if as debt free if only a mortgage remains. Not sure what you would class if as. 

We will probably keep the m and s card just in case we need to buy any big purchases before the deal ends.

Thank you 

Brie

Interesting question.  

A mortgage is considered a normal part of life and while it is a debt it's an acceptable one.  Does that make you debt free?  Not really but why does this matter as it sounds like you are being incredible sensible with your finances?  

As someone who gives debt advice I wouldn't have any interest in talking to you (in the nicest possible way!!)  at least from what you are saying here.  I'm assuming from what you've said there's also nothing outstanding on any utilities, no bank overdraft, nowt owed to Cousin Bernie or anyone else.  

joedenise

Agree with @Brie.  You're not debt free but you are being sensible with finances in as much as you have a debt on 0% which you will pay off before the 0% runs out.

You won't be debt free until you have no debt at all other than your mortgage which is of course "good debt".

Sncjw

Brie said:

Interesting question.  

A mortgage is considered a normal part of life and while it is a debt it's an acceptable one.  Does that make you debt free?  Not really but why does this matter as it sounds like you are being incredible sensible with your finances?  

As someone who gives debt advice I wouldn't have any interest in talking to you (in the nicest possible way!!)  at least from what you are saying here.  I'm assuming from what you've said there's also nothing outstanding on any utilities, no bank overdraft, nowt owed to Cousin Bernie or anyone else.  

Hi 

Yeah no overdraft and don't owe money to anyone. If we borrow money from family it's paid off asap. 

Nothing outstanding on utilities either. 

Sncjw

Also just have to say I've learned a lot from these boards and also communicated a lot with my husband and taught him. 
.he lets me be in control of the finances but I do talk to him about it for big things like what to pay and when. 

We have clear line of communication when it comes to money. First he got stressed about it but now he understands why I talk about it..

Purplelady65

I would say you are debt free of any personal debt. You might have a mortgage but you also have an asset - your house. So assuming the house is worth more than your mortgage then you could class yourself as debt free from that perspective. 

Sncjw

Oh crap I forgot the PCP car my husband has in his name and also our phone contract 

foxgloves

I count our debt-free period as beginning the year we paid off the last of our consumer debt, which included credit cards, overdrafts, car loans & the remnants of a consolidation loan. Once the mortgage was also paid off, I described us as both debt-free & mortgage-free. Of course a mortgage is debt, but the money would still need to be spent on rent, so I have never viewed it in the same way as general consumer debt.
F

Brie

Sncjw said:

Oh crap I forgot the PCP car my husband has in his name and also our phone contract 

It's amazing how many of these things we have that seem like they are of little or no consequence!!  I was talking to someone recently who didn't think their (significant) overdraft wasn't a debt!!  Because it's their bank account so that somehow made it ok!!  (not!) 

communicated a lot with my husband and taught him. .he lets me be in control of the finances but I do talk to him about it for big things like what to pay and when. We have clear line of communication when it comes to money. First he got stressed about it but now he understands why I talk about it..

This is where I fail.  I try to talk to my OH about the finances but because of the stress, extreme reaction it produces ("OMG!! We're going to lose the house!!") I avoid it a lot of the time.  He's started to ask for more details - which is fine - but still stresses so then I shut up.  Need to work on this a bit.....

Sncjw

My husband is alot better when I have sat and explained my thoughts for a plan and the reasons why..he then processes it and suggests things and then we work together to get a plan. 

The plan can change depends on things that crop up but I always keep him updated how much I've paid off on the card and how much is left and roughly when it could be paid off if sticking to plan.