How much debt?

Jaco70

How much debt do you have?
I’m 54 and mine equates to about 30% of my total assets (property, business, pension), which sometimes feels a big number.
But it generally comes down a bit each year.
I try to think long term, and not panic, but I expected to have less debt at this age. 

VNX

I’m 40, Zero. No credit card / store card debt.

No loans or mortgage.

but we are all in different situations.

what debt is it you have may I ask? Mortgage debt or credit card/loans?

Jaco70

VNX said:

I’m 40, Zero. No credit card / store card debt.

No loans or mortgage.

but we are all in different situations.

what debt is it you have may I ask? Mortgage debt or credit card/loans?

All mortgages. No other debt.
140k on my main dwelling, 440k on BTL.
But zero debt in my other business, unrelated to BTL, which I take comfort from.
I’ve fallen out of love with property, and would transfer all the equity into stocks, and dramatically reduce my debt levels, if not for the CGT liability.
And well done btw, at only 40 👌

Hoenir

If it concerns you. Make 2025 the year to reduce the amount you owe. 

thegentleway

I’m about 50% at 40. All mortgage.

Surely it’s best to transfer equity sooner than later, CGT bill is only going to continue growing?

Rich1976

Aged 48, zero debt with the exception of the mortgage that has about 3 years left and intend to stay debt free.

enthusiasticsaver

You are probably asking on the wrong forum as this is savings and investments.  If you  post on DFW then the percentage will be a lot higher.  At 54 30% is not too awful but presumably it is coming down each year.  Will it be repaid by the time you plan to retire?

I am 64 and retired age 58.  No debt or mortgage beyond the monthly credit card balance which is paid off in full each month. 

eskbanker

Jaco70 said:

How much debt do you have?
I’m 54 and mine equates to about 30% of my total assets (property, business, pension), which sometimes feels a big number.
But it generally comes down a bit each year.
I try to think long term, and not panic, but I expected to have less debt at this age. 

Jaco70 said:

All mortgages. No other debt.
140k on my main dwelling, 440k on BTL.
But zero debt in my other business, unrelated to BTL, which I take comfort from.
I’ve fallen out of love with property, and would transfer all the equity into stocks, and dramatically reduce my debt levels, if not for the CGT liability.

If you have total assets of circa £2m, then personally I wouldn't inherently see it as a huge issue to have 30% of that secured on these, given the benefits of leverage, but if you're looking to move away from property then doing so ought to resolve any concerns you have.

ZeroSum

Depends on situation. I don't consider myself as having debt, but my credit file says otherwise. This is because it's all credit card stoozing

Jaco70

enthusiasticsaver said:

You are probably asking on the wrong forum as this is savings and investments.  If you  post on DFW then the percentage will be a lot higher.  At 54 30% is not too awful but presumably it is coming down each year.  Will it be repaid by the time you plan to retire?

I am 64 and retired age 58.  No debt or mortgage beyond the monthly credit card balance which is paid off in full each month. 

Sorry, I'm generally on the wrong forum, even though I do try to chose the correct one.

I'll take 'not too awful' thank you. Obviously the question was just to gauge other peoples feelings on the matter, because its surprisingly difficult to find an answer on google. The searches tend to come up with debt to income ratios, rather than debt to assets.

I haven't really set a retirement date, but if I retired at 67, I think I would still have debt (almost certainly), as much of it is interest only. I hope to pay off my home mortgage and then I have a few ideas about what to do about the IO debt, but nothing concrete yet.

Tucosalamanca

You have chosen to have BTL properties, funded by debt.
It's a choice, rather than being stuck in a hole (so why worry?)

If you're uncomfortable with the debt level, sell the properties.

Jaco70 said:

I'll take 'not too awful' thank you. Obviously the question was just to gauge other peoples feelings on the matter, because its surprisingly difficult to find an answer on google. The searches tend to come up with debt to income ratios, rather than debt to assets.

I haven't really set a retirement date, but if I retired at 67, I think I would still have debt (almost certainly), as much of it is interest only. I hope to pay off my home mortgage and then I have a few ideas about what to do about the IO debt, but nothing concrete yet.

It doesn't sound like you have a plan and it's all a bit vague.

If you want to concentrate on paying down debt / growing assets, I've found spreadsheets to be useful.
They have massively accelerated my journey to be debt free.
They give structure, a vague plan (at the minimum) and have also given me motivation, something to focus on.

I have around six months income on 0% credit cards but stoozing the cash, so actually zero debt.
I take a modest wage and all other income goes in to pensions (early fifties planning to retire before sixty).
The future is mapped out and I don't worry at all.
Everything is planned for the next 30-40yrs and can be adjusted as things change (no one has a crystal ball).
My worry is that my health fails or I simply don't live long enough to fully enjoy retirement.
I guess that it's a nice problem to have...