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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To think apart from mortgage it is possible to live debt free!?

660 replies

Moneytalkone · 10/01/2020 09:52

Just that really, AIBU to think that it is possible to live debt free, that debt isn’t a necessity in life! Apart from a mortgage I suppose if you want to own a house. Had a chat with a friend who claimed that debt is given these days, it’s almost an accepted/expected part of life? What do you think?

OP posts:
peanutdust · 10/01/2020 09:55

I don't think it is I mean I don't have a mortgage so I pay my rent weekly as that what works out better for us, however I don't have any cards or debts outstanding it's just the rent and council tax really.
And they get paid soon as they are due.

But I do have zero savings so I live hand to mouth every week but it's something I'm working on atm!

peanutdust · 10/01/2020 09:56

Sorry just read my post back and it doesn't make sense to me I meant to put I agree it is possible to be debt free, but it's bloody hard though.

OoohTheStatsDontLie · 10/01/2020 09:56

I dont have any credit or store cards. I once bought a sofa on credit as it was 0pc and no discount for payment up front but nothing other than that. I save up.

Norma27 · 10/01/2020 09:58

I think it depends. I got into debt after being made redundant from a decent job. A change in circumstances can be devastating.
It would be lovely to be able to sit in judgment of those who are in debt because such things had never happened to me.

WreckTangled · 10/01/2020 09:58

What about when your car breaks down? If you don't have any savings. Where I live there's a bus once a week, a car is a necessity and that's where all my debt comes from.

Not to mention all the people whose benefits get delayed etc. You're naive if you really think it's possible to live without any debt.

HappyDinosaur · 10/01/2020 09:58

I think it depends on your circumstances, some people willingly take on debt, but sometimes people are hit with unexpected bills e.g. for fixing a car/new fridge/roof leaking etc that they are unable to pay immediately. Also people may be suddenly out of a job, meaning their income drops drastically but bills still need paying. I also think the vast majority need to take a loan to get a degree, which although a bit different is still a debt. Living within your means is ideal, but may not always be possible.

cliffsofabandon · 10/01/2020 09:59

No debt here apart from
Mortagae. Never had a credit card or store card or a loan.

BinkyBaa · 10/01/2020 09:59

Are you including student loans in that?

TakeMeToYourLiar · 10/01/2020 10:00

Of course it's possible. If you gave a good income, save and nothing goes wrong.

You have to accept you might have less material goods than others

DH and I both have mid level professional jobs. No debts except mortgage.

But we have a 18 year old car, 2 bed house in ok area and generally holiday in the UK

KidLorneRoll · 10/01/2020 10:00

Debt is not necessarily a bad thing. Unmanagable debt is.

Used sensibly things like credit cards allow for budgeting and can save people money. Sometimes debt is unavoidable. Not everyone is able to save for every necessity and eventuality..

AhoyMrBeaver · 10/01/2020 10:00

Obviously you're in different circumstances to your friend, and you're either very naive or disingenuous. You must know that some people are in unfortunate circumstances that mean they can't avoid debt (illness, divorce, redundancy, bereavement...).

nocluewhattodoo · 10/01/2020 10:00

Student loans and tuition fees mean a vast majority of people graduate with £30k+ in debt. I didn't even finish my degree due to a nervous breakdown and mine is £34k now with all the interest. There's no way I'll ever be able to pay it off

OddBoots · 10/01/2020 10:00

It is much harder these days if you go to university, most can't pay their fees upfront any more than buying a home outright.

Babdoc · 10/01/2020 10:00

Surely it’s income dependent? If you have an above average income, or a comfortable buffer of savings, then there’s no need whatever to run up debts. If you’re struggling on minimum wage with no reserves, then it’s probably very difficult to avoid debt.
Some people will always be bad at financial management, or make impulsive purchases, and I imagine they might be at risk of debt on any income level.

JacquesHammer · 10/01/2020 10:00

It is a privileged position to be able to be debt free.

FreyaMountstuart · 10/01/2020 10:03

I live debt free (and have done for years). Paid off my mortgage last year so am now absolutely debt free - it’s liberating!

aLilNonnyMouse · 10/01/2020 10:03

I think it depends on your income mostly. If you don't have a stable income then debt is almost inevitable and a lot of people can only find work on a zero hour contract.

People on universal credit can also have issues with budgeting due to stupid things like double pay months.

I struggle to budget as my benefit payments are so random. My bills are all monthly yet my benefits payments are not. They run on a 4 week cycle. Week 1 I'll get my ESA payment, week 2 I get PIP and Housing benefit together, week 3 I get ESA again and week 4 I get nothing. None of these payments are for the same amount.

My income will also drop by £150 a week when I get moved to universal credit and I'll really struggle then. I'm currently on the max rate of all disability benefits and that rate has been massively slashed with UC.

If you have a stable job that pays enough then debt is easy to avoid. But that's a lot harder to come by these days and isn't attainable for everyone.

lanthanum · 10/01/2020 10:03

My parents were always debt free, other than credit cards which were always paid off in full. However this meant that when they tried to change credit card, they had problems with their credit rating!

reluctantbrit · 10/01/2020 10:03

We have a mortgage and while we use a credit card the balance is paid in full when due. We use it mainly for larger purchases and flights/holidays/rental cars as you have more protection than when paying with a debit one.

But I do understand people needing a loan for emergency purchases like car repair, new car or white goods. I worked in retail banking aeons ago and some eople do struggle even with working full time.

elprup · 10/01/2020 10:05

I’m currently £7,300 in debt and am hoping to become debt free this year. I doubt I’ll manage it but would love to if I can - especially as we have a baby on the way.

MarieG10 · 10/01/2020 10:08

Well I think it is possible. When younger I was totally skint but didn't borrow as otherwise it just made it worse. I have had a rule ever since not to borrow except for the mortgage which is now paid off.

Bit of a rant now

I don't have student loans which you don't mention but despite the advice from Money Supermarket and Martin Lewis, these are a real drag on our young people. They start paying back at £25k which let's be honest is not much of a salary once you have responsibilities and therefore adds effectively a circa 10% tax to their salary after that. How long will it be before the £25k threshold is reduced?
For one of those people that ever hit higher rate tax and have 2 children they will have a marginal tax rate if 70% which I just think is terrible and will kill incentive to work extra hours or take more responsible roles. I am already sick and tired at work of the universal credit taper that allows people to work but as soon as they get a pay rise they want to cut their hours to prevent UC reductions. I just hope Boris and Cummings start getting to grip with all these disincentives for people to work and yes....I do disagree with tuition fees but I know that if they get rid, then they will just slash university places

Rant over!

notacooldad · 10/01/2020 10:08

Of course it is possible to be debt free!
I have a mortgage and that is it.
I do have credit cards and they get used but they are paid off within a day or so if not within hours of use by bank transfer.

BikeRunSki · 10/01/2020 10:09

No debt apart from mortgage here, I use a credit card for the points, and pay it off every month. I once had a 0% 6 month loan to buy a mountain bike, about 15 years ago, but I could have paid it off at anytime. Just want the money to earn interest for me, not the bike shop!

We deliberately favour a modest house, low key holidays etc and savings over debt. I recognise though that I am fortunate to have been to university before loans were introduced, and to get a car with my job (tab and personal contribution is still £150/month, but it allows me to drive a nicer car than I would otherwise). This policy paid off when DH was made redundant when I was on mat leave.

Ginfordinner · 10/01/2020 10:11

Of course it is. I am ancient, and our mortgage was paid off ages ago. We own our cars outright and have savings.

BrokenWing · 10/01/2020 10:12

Obviously everyone's circumstances are different. It is entirely possible to have a reasonable income, live frugally/within your means, have an average pot of savings and still get into debt due to a run of unexpected costs.

Or it might just be you, have all of the above and just want that new car, new sofa, new kitchen now and are willing to 'go into debt', pay it up and either have backup plans/insurance or have assessed and are willing to take the risk.

Personally am risk adverse and mostly save and then buy, but don't judge those that buy now pay later. It is their risk, nothing to do with me.