to ask about your debts?

[BasinHaircut]

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.

[Miloarmadillo1]

Mortgage, overpaying when we can to get it down. That's it. If we can't afford stuff we don't have it.

[Unescorted]

We had 37.5K unsecured debt. plus mortgage. Now have 70% equity in the house and no unsecured. It has been the hardest 6 and a half years to pay it off. Thankfully it is done now.

[fieldfare]

None other than the mortgage.
We have had in the past and it's been painful so now we save for everything in advance. I like having a safety net.

[NatashaRomanoff]

Not everyone, Basin but the tone of some is toe curling!

[Sgtmajormummy]

Apart from 2 years of mortgage repayments which are now 92% capital, so more like an investment plan, we have no debts.

However, with interest rates on loans running at 2 or 3% it really isn't a huge deal to take out a loan. I would have no qualms about getting one to finance a life-improving purchase like a reliable car or a new boiler that I didn't have the cash for but could afford the repayments.

In fact with income tax rebates on energy-saving investments like house insulation (55% rebate over 10 years in this country, not the UK) it makes positively good sense to take out a loan.

[BoyFromTheBigBadCity]

I am disgustingw lucky that my parents paid my uni debts. So just mortgage. I have a credit card that I never use, so I can get a credit score.

Current system is unfair.

[LuluJakey1]

We have no debt at all.
Mortgage paid off- overpaid it. Cars paid off- both could do with replacing but we aren't that bothered about flashy cars- they both work well.
We have money left over every month and we save and buy things with cash that we want or need.

[YaySirNaySir]

None. Mortgage only here.

[Bails2014]

As of last week, NOTHING! Feeling very proud that I paid off my debts all by myself and didn't blow any spare money I have had for the last two years.

Now I just need to build up my savings and I'll be happy.

[IonaNE]

None and never had any, not even an overdraft. (Surprised at how people get into debt for clothes in catalogues, sofas and cars: I bought my first car for £250 and you can still buy a sofa for £50 second hand...). I don't own a house though, I rent.

[justjuanmorebeer]

None apart from student loan that I took out in 2005 (4k) I dread to think what it is now though. Have never earned enough to trigger repayments of it. I need to check what it is up to really.

[IonaNE]

what is the logic behind racking up £40/ £50k student loan to then not earn well enough to pay it off?
Doing what you want to do 8 hrs a day 5 days a week for about 45 years of working life.

[Bearbehind]

Doing what you want to do 8 hrs a day 5 days a week for about 45 years of working life.

But surely if you do that you'd earn enough to pay the loan back, even if at a tiny amount a month?

[Summerxsunx]

£7800 on a CC and £2800 graduate overdraft.... So about £11,000 that I'm paying off £300 a month of as of 3 months ago. Going to take me 2.5 years to pay it all off unless I chuck £500 + a month at it, which I may do some months.

I bitterly regret all of it and I swear, when I FINALLY get debt free I'm never getting into debt again unless it is absolutely necessary.

Oh yeh, I also have student loan debt, but like many others, aren't really counting that.

I agree that there is no way this thread can be representative of the general population and that a lot of people on it sound incredibly smug. Eurgh.

[FuckingFattyBitch]

Surprised at how people get into debt for clothes in catalogues

I needed clothes. I had one pair of jeans left and 2 t shirts that were wearable. I had spent the last of what I had saved on clothes for my baby who had just gone up into the next size. That's how I ended up buying out of a catalogue. Until you've been in that position where it's your only option do not judge.

[MerilwenRose]

None, but only because my mum took out a loan to pay off my car and credit card - around £7k total - five years ago when I had made poor decisions and it all spiralled out of control. I repaid her in instalments until she very, very kindly let me off the debt when I went on maternity leave. I am bloody lucky and never want to be in debt again. I am now phenomenally good with money! We have savings, and would only take out a loan for something essential (ie if our boiler broke and we had no savings). I would never get into debt over luxuries.

[mnpeasantry]

£8.5k on 0 interest cc but accrued over mat leave and paying off slowly to enable my dh to pay down his debts which were nearly £30k and should be £0 by October.

I will clear cc debt before I attract any interest.

£360k mortgage which is big but not hugely unusual for the southeast.

Finances look like a basket case written down like this but I did pay off student loan quickly and parental loan of £30k for first home.

[Riversiderunner]

People's insouciance about ever paying back their student loans pisses me off.

Where do they think the money for them came from? That's right - taxpayers like me who work bloody hard and contribute to the economy with the taxes we pay.

Why take out these vast loans to study if you've no intention of ever paying them back?

I bet you're the people who go on austerity marches.

[MarkRuffaloCrumble]

I have two credit cards, both 0% for nearly two years. One was for a laptop for myself and DS (he is working for me to pay off £50 a month) and then I took out another so I can take the DCs on a lovely holiday this year.

Total on both is about £5k, which I am paying off at about £300 a month. My mortgage reduced by £200 a month recently so I can pay these off without noticing too much of a difference. My maths says that I should have it paid off before the 0% ends!

Will probably add a few bits and bobs on in the meantime if needed, but perhaps try to cut it down to one card and then get a new one on 0% for another two years if I need it.

[MissJM1]

I owe just over £2K on my car and about £1k for furniture I bought on finance (not sure what the interest rate was) I pay £160 a month for the car and £70 a month for the furniture

DH owes £800 on his credit card, think he pays about £100 a month off this

Oh and I owe £1700 to HMRC for tax credits overpayments. I pay £41 a month for it.

Just my mortgage after that, £85k to go!

[Happylandpirate]

£165K mortgage
Car finance - £128 per month - paid off next year but will probably purchase another car on finance straight away

Myself and DH had a load of awful debt a few years ago due to job changes and mat leave and we did a DMP 2.5 years ago. That was £20K and we have it down to £7K with three of the debts paid off. Apart from mortgage we will be debt free in September 2017 and its feels like such an achievement, even though we got ourselves into the stupid mess!! We have one credit card with a £500 limit on it that we use and pay off every month to keep our credit rating healthy!!!

Our future is secure and more importantly to us our DD's future is very secure due to a 6 figure inheritance sum coming our (and hers) way. Won't be for 10 or 15 years but we are early 30s so for us it'll be just the right time.

[BadLad]

Since you excluded mortgage debt in the OP, about 4k on credit card, as we just paid for flights with it. It will be paid off at the end of the month, and we get 3% back.

That apart, none.

[StickTheDMWhereTheSunDontShine]

None at all.

Have a CC but it gets paid off each month.

[StickTheDMWhereTheSunDontShine]

And yes I am pleased at being debt free.

Have been in a ridiculous amount of debt (not all my fault) and it was crap. Never want to get there again, if I can avoid it.

[WhingySquirrel]

Student loan which I don't earn enough to be repaying. That's it apart from three mortgages