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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

to ask about your debts?

199 replies

BasinHaircut · 31/05/2016 14:48

Inspired by another active thread im just wondering how much debt people have (outside of mortgage debt), what sort of debt it is and how they manage it?

I dont really like discussing money IRL so would be fascinated to know how other people operate.

ill start:
0% interest credit card, about £2k, paying off over 2 years (new bed and TV splurge)
0% interest sofa payment, about £1k, paying off over 3 years
Just about to take out a £15k loan (not 0% interest sadly) for a new kitchen over 5 years.

All of these debts were taken on after budgeting the required monthly payments and with a clear end date planned. Even so it seems like a hideous amount of debt.

We could actually pay the sofa and credit card off in full right now but seems more sensible to me to pay off monthly as they are both interest free debts and keep the cash in the bank.

OP posts:
SquinkiesRule · 31/05/2016 19:53

Zero. We pay of the CC each month if we use it. We own the cars and no loans.

whois · 31/05/2016 19:54

Zero.

However I'm thinking of buying a flat that needs a lot of work and if I do I'll borrow some to get the work done now.

Sherlocked1606 · 31/05/2016 20:00

When I got my mortgage my bank was very clear that student loans are not counted as debt and have not effect on credit scores. My student loan is 1.5% which isnt too bad. I pay about £80a month from my wages and have topped up with a lump some if and when. I needed the money to go to university, I knew I would have debt when I finished. I will have it paid off in 6 years. I can't image getting loans an not intending to pay them off. It just seems wrong to me and I couldn't do that.

DH and I have 60k left on the mortgage and I have £300 left to pay on my braces.

Bearbehind · 31/05/2016 20:10

But the rules have changed so student loans now do affect affordability on mortgage calculations.

So, if you don't earn enough to repay the debt then it's unlikley you earn enough to get a mortgage, and if you do earn enough to repay it, the debt will adversely affect your mortgage application so cannot just be ignored.

PrincessHairyMclary · 31/05/2016 20:10

£15000 student loan (not paying it back yet)
£40000 loan from my parents who brought my flat for me (£200 a month)
I have a credit card but only use it for the insurance on bigger purchases and fully pay it off each month.

Tartsamazeballs · 31/05/2016 20:12

None.

We have a joint account, both salaries go in, bills come out. We each have a credit card that we use for spending that gets paid off in full each month.

Overall total debt (ie mortgage) < savings. It's more cost effective to have our money in savings as saving interest income is more than the cost of the mortgage.

Oysterbabe · 31/05/2016 20:15

I have student loan and two mortgages but that's it.

thrillhouse · 31/05/2016 20:15

Aside from mortgage and student loan, just took out £1,500 credit to buy some new carpets. And that's it for me.

Debt is my day job so I avoid it like the plague of at all possible...

Original poster
BasinHaircut · 31/05/2016 20:19

natasha I don't know about student loans as I've paid mine and it was nowhere near the amounts thrown about here, but the reason I asked for debts not including mortgage is because we almost all have to pay for somewhere to live and so IMO it's not the same as other (and usually smaller) debts. I don't think that makes anyone who has no debts apart from a mortgage smug? Hmm

poo no I'm not justifying it to you guys, just to myself! Debt doesn't sit easily with me but I just want to finish this bloody house!

And yes it is an expensive kitchen but it's going to be bloody gorgeous! Grin

OP posts:
Lilmisskittykat · 31/05/2016 20:19

Student loan - £10k (just pay it back through wages don't worry about it rest of the time)
Credit card (mine) - £45 (0%)
Credit card (dh) - £2400 (0%)
Small loan (dh pre marriage) - £1500 (0%)

So not too bad - I don't count student loan.. But would be nice to be clear of them all especially as I'd like to move house

NerrSnerr · 31/05/2016 20:21

Bear when people say student debt doesn't count it doesn't necessarily mean because they won't pay it back, it's different because it's not like a credit card or loan and it comes out of your wages.

I didn't count mine as real debt but I assure you that every penny has been paid back plus interest!

The debt we have now is just mortgage. I had a loan and cc but managed to get those sorted in the last few years.

FanDabbyFloozy · 31/05/2016 20:21

None, realise I am fortunate (though have saved and scrimped and saved, so maybe I have made my own luck).

annandale · 31/05/2016 20:22

£7k student loan. £1200 remaining of a personal loan started in January due to Christmas Blush dh doesn't know about it and wouldn't be happy. We have saved for two years towards a holiday abroad next year, it will be great to pay upfront.

Bearbehind · 31/05/2016 20:24

I still don't get it nerr, even if it is deducted at source, student debt results in you having less money than you would have had without it therefore it cannot just be dismissed as irrelevant.

BG2015 · 31/05/2016 20:25

£900 on my credit card
£5k on car finance with 2 years to go
£5k to bank of mum and dad paying them back £300 month

Plus my mortgage which I'm overpaying.

I always seem to dip into my overdraft too, which I wish I could get into the black. I'm a single parent with 2 teenage DC. It's hard even though I earn an ok salary

AlbusPercival · 31/05/2016 20:25

None, but we are very lucky to have generous relatives.

Our car was a gift, as was our tv and tumble drier, and fridge freezer

thatsn0tmyname · 31/05/2016 20:27

Zero, aside from the mortgage. I clear the credit card every month and sometimes dip into overdraft. Fortunately the children are young and don't mind charity clothes and toys. Tesco Boost has been brilliant so am saddened it's ending.

Bearbehind · 31/05/2016 20:28

Bg, this isn't a criticism, I'm genuinely intrigued by some of the trains of thought on this thread, why do you over pay on you mortgage when you have credit card debt and need to use your overdraft?

Bearbehind · 31/05/2016 20:30

Whoever said this thread would not be representative of the real picture was spot on

There's a disportionate amount of 'zeros' on here, even after the student debts that don't actually count Hmm

Oliviaerinpope · 31/05/2016 20:31

None, we've even paid off our mortgage. My DH is excellent with money Grin

KeithRichardsPetCat · 31/05/2016 20:31

£60k on mortgage
£457 on credit card
£8kish on car (I insist on driving a nice car) Grin

I've about £7k in savings which I save to every month; £1.5k for DS who's nearly 2yo

I'm 25 and lone parent working full time. I realise I'm extremely lucky; most friends and family of my age struggle to get on property ladder

waterfallsandmountains · 31/05/2016 20:34

£15k on credit cards which we are really trying to pay off. Did build it up through putting holidays on it but although I worry I don't regret it one jot as you can never get that time back and I think they were experiences worth the worry.

Owe family about £7k which we pay back at £200 per month - it will take a couple of years but don't stress about that as no pressure to pay it but obviously I want to.

£20K bank loan, have paid 1/3 of it with 2 years to go.

We are relatively high earners but hate the debt and really trying to pay it off as the interest is not good or the worry.

Never had store card or HP debt.

No student loan!

SusannahD · 31/05/2016 20:35

£1500 on an 0% purchase credit card

I have just paid of £3200 on another credit card which now has £500 left on it.

So £2k in all.

WhoisLucasHood · 31/05/2016 20:48

£2k on credit card which get paid in full when due by D/D so no real debt apart from the mortgage.
We're finally OK financially, it's not always been like this we've had car loans, finance agreements, overdrafts, bank loans and credit card debt.

AndersArms · 31/05/2016 20:51

About £25k across a loan and several 0% credit cards. Service it all well. Credit can be very useful if you use it well. Some of it is historic living outside means and Mat leave but also the car and some essential property maintenance. About to go on Mat leave again so it will probably rise again but is all quite manageable as long as I have my job.

I will be pleased to get it all sorted over the next 3 years or so hopefully.

On the flip side I finished repaying my student loan 4 years ago.