BIg debts?
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zanadoux
Posts: 1 Newbie
Hello
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Quick question - how common is it for couples to have BIG debts. By BIG debts i mean like 40k+
I know its all relative, but i'd be interested to see if many people actually have debts of this level?
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Quick question - how common is it for couples to have BIG debts. By BIG debts i mean like 40k+
I know its all relative, but i'd be interested to see if many people actually have debts of this level?
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Comments
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£65k, and just starting a DMP0
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Loads do. Especially if you include car finance. Look through some of the diaries to get an idea of the numbers.Hello
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Quick question - how common is it for couples to have BIG debts. By BIG debts i mean like 40k+
I know its all relative, but i'd be interested to see if many people actually have debts of this level?0 -
I've still got more than that left after paying my mortgage for 16 years. Might be better op if you wanted it as a % of income, £2 debt is nothing, but if you only earn £1.........0
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On this forum you might find quite a few. Who knows as a general rule but no we never had more than about £7k- £10k apart from our mortgage. We don't have any now. According to statistics though I think the average level of debt was £15k per household in 2018. I daresay that is not spread evenly though.
The general view you get from the media is that people are taking on more and more debt mainly because interest rates are low and lending relatively easy to come by if you have a decent credit record. That does not mean it is wise to do so though. I also find that higher earners often do take on lots of debt but strangely have few savings. That seems to me a recipe for disaster as even high earners can be made redundant.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.0 -
The majority of adults with a mortgage will have debt well above that level.
If you're asking because you are looking to compare your own level of debt to others - then please understand that it's not relevant unless all other factors - income, assets, overall priority expenditure, dependants - are also equal. Better to just deal with your own situation independently of comparisons (which *might* make you feel better, but then again *might* not!). Maybe put together an SOA (Statement of Affairs) and post it in here and we can take a look and help with some advice if that would help.🎉 MORTGAGE FREE (First time!) 30/09/2016 🎉 And now we go again…New mortgage taken 01/09/23 🏡
Balance as at 01/09/23 = £115,000.00
Balance as at 31/12/23 = £112,000.00SOA CALCULATOR (for DFW newbies): SOA Calculatorshe/her0 -
Yes I was just going to agree with the above poster about comparing debt. All relative really. Some people have £10000s of debt but have very high joint incomes.
What we do say though is that if someone had to retire due to sudden ill health, could you cope...Savings as of April 2023 Savings account - £26460.50(14474.88)Current account - £2140.24(4576.79)Total - £28600.74(19051.67) £1010 (£65pm CS/BS) £250 CS/BS/JS0 -
I don't think debt is a bad thing as long you have the means to service it. Yes you could be in 40k worth of debt, but if you and your partner earn 250k a year then its not to bad. The problem is when the debt becomes to much to service in relation to what income you have
Also I think there are 2 types of debt....Getting into debt to by an asset (i.e. house extension/car/jewellery etc) is no way as bad as getting into debt to buy a non asset (holiday/new clothes/general living expenses)
Personally me and my partner have no debt apart from our mortgage, and we both earn a good wage. I am proud of this, as of course like everybody, in the past we have had credit card debt etc0 -
Also I think there are 2 types of debt....Getting into debt to by an asset (i.e. house extension/car/jewellery etc) is no way as bad as getting into debt to buy a non asset (holiday/new clothes/general living expenses)
A house extension may not add the same in value as it cost to build. A car will depreciate in value. If you buy new jewellery with debt, you'll never make your money back as the cost of new jewellery is massively over-inflated. And surely if you buy anything with a debt, it's a liability, not an asset??0 -
zippygeorgeandben wrote: »Yes I was just going to agree with the above poster about comparing debt. All relative really. Some people have £10000s of debt but have very high joint incomes.
What we do say though is that if someone had to retire due to sudden ill health, could you cope...
My husband and I 'only' had just under £8k total debt but it was crippling us. I happen to know that some friends of ours had over £20k and managed to buy a house earlier this year with only a small deposit. Their income isn't massively different to ours, but they have no children or pets (we have 3 and a menagerie lol) and our financial obligations are completely different to theirs. Difference in our favour is that it's taken us a year to dig ourselves out.....they're going to be plugging away for at least the next 4!!Changing my Family's Future!! - Starting again!!!!
Current Progress -
Debt - Start date 31/8/22 = £7,252.78
Savings 31/8/22 - £0
plus £1000 EF - £0/£1000 = 0%0
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