We have some debts that we are slowly paying off, but also some money in the savings acounts ( one with easy access where we try to save up but from where the "emergencies" get paid, one where we just build up a "nest", not much paid in monthly but it does build up, also the kids' accounts, some that cannot be accessed until they are 18, some we could access if really necessary). Also, we have a couple of hundred pounds on the Nectar card (DH calls this card "the last resort", food and petrol for a month if the shit really hits the fan). The facts that we both have good credit and good insurance (life, critical illness, mortgage), that DH is likely to have a decent pension and that the house has some equity make us feel less worried about the debts and the future. Also the fact that we both have OK-ish jobs (earning more than average wage) mean that if one of us cannot work for whatever reason, the other one could cover the mortgage, the minimum payments of debt and the basic bills . However, now as the kids are getting bigger and the childcare costs get smaller mean that hopefully the debts will be paid off sooner, while still affording modest holidays, treats etc. I think we are in a better position that a lot of other people...