How much debt?

VNX

Jaco70 said:

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 👌

As it’s mortgage debt I wouldn’t be too concerned. It’s people who have large credit card debt that’s a concern 

EssexHebridean

Roughly 20% here - just mortgage - at early 50's. 

Was Zero from 2016 until 2023 when we moved and took a small mortgage again. Worth every penny though! The new mortgage term was over 16 years, but we've been overpaying from day 1 so that term length is already shrinking rapidly. 

Mortgage debt is generally seen as "good debt" and isn't something to be unhappy with so long as it is coming down at a steady rate, and the terms are not constantly being extended by remortgages. Consumer debt is what is best avoided, although as we are well aware from DFW that isn't always possible, sadly. 

MEM62

I have zero and it has been that way for a while.  If I cannot afford something, I do not have it.  Nobody improves their financial position by hanging onto debt like it is a treasured pet.  

ian1246

Currently have a mortgage roughly 82% of my house value & savings. This time last year it would have been 87%, having just brought my first post-divorce house - so it's going down!! Plan is to overpay & reduce monthly amount, freeing up income to either further overpay with or divert to higher % saving schemes (difficult currently, the mortgage is 6.68% atm until Nov 2025, hoping to remortgage at 4-4.5% rates!)

I m 35 years old - the above doesn't factor in pension value (defined benefit) 

eskbanker

MEM62 said:

Nobody improves their financial position by hanging onto debt like it is a treasured pet.  

Plenty of people benefit from well-managed and well-structured debt, hence the earlier point about the benefits of leverage, as well as stoozing and so on, so your dismissive point is too generalised....

Jami74

Sounds like a boast post to be honest, owing half a million as a small percentage on property.

To help you feel good about your situation, I am nearly your age and owe 89% on my first and only property.

(In case anyone misconstrues my comment, I am thrilled to bits with my current situation, someone quoted to me when I was a young adult "We cannot change the cards we are dealt, just how we play the hand" and I absolutely feel like I am winning.)

onomatopoeia99

Age 55, no debt.  Paid off the mortgage 18 months ago, but could have done so (just) when I turned 50 (a target I set myself when I turned 40).  Preferred to build an emergency fund before redeeming a base+0.24% loan which came with an offset facility.

TonyMMM

None......

fergie_

Approximately 60% compared to assets, but that will continue to come down pretty quickly and plan to be debt free before retirement.

As others have said, a lot depends on what the debt actually is and what vehicle you have to pay it off. I'd add to that the cost to service the debt and how that impacts on day to day living.

Hoenir

Jaco70 said:

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?

 440k on BTL.

What interest rate exposure do you have ? Are some of the mortgages coming up for refinancing?