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

[Moneytalkone]

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?

We also have an old but serviceable car

@catsmother
Totally agree with your posts. I have always been careful financially but ExP trashed areas of my home which I have no money to repair. It can wait- Dd & I have a roof over our heads but it’s pretty depressing worrying every month about money. ExP pays me a pittance in child support. Maybe
it’s all down to my terrible choice of father for my child but that doesn’t change the fact that I don’t earn enough. I have a professional job but I also live in an expensive part of my country which I can’t change, I don’t even think my house is saleable at the the moment, doors with punch holes in them anyone?.
Try & imagine a life if your husband or partner buggered off. I can’t send my daughter back & I can’t change my job at the moment.
It’s doesn’t make you a better person or indicate a lifetime of poor choices.

If people who class mortgages as bad debt is renting a house then better as effectively you have not debt’

Of course it’s possible.!

If you want to get a mortgage at some point you need to accumulate some debt to prove that you can pay debt back. I've heard plenty of stories recently where people have been denied a mortgage despite necessary deposit and salary because they have a lack of credit history.

I've heard plenty of stories recently where people have been denied a mortgage despite necessary deposit and salary because they have a lack of credit history.

DH was in that position when he took out his first mortgage. He'd never been in debt. He ended up getting a self certified mortgage to start with and then switching after a few months.

If you want to get a mortgage at some point you need to accumulate some debt to prove that you can pay debt back.

But "debt" in that sense can be something like a phone contract, or a contract to SKY for the internet/TV. That's the only debt DH and I ever had when we got our mortgage four years ago. Neither of us had ever had a credit card.

The only debt we have is our mortgage. We have always been lucky to have well paid jobs and smart enough to save for things we want just in case we went into a position where we couldn’t afford it.

For some, debt is unavoidable. I have a friend who is in debt due to reasons outside of her control. I think it really depends on the individual circumstance and in some cases, luck with employment, purchases etc.

Debt because of illness, loss of employment, divorce... not always avoidable.

Debt to replace a car or appliance, go on holiday, buy day to day luxuries... avoidable!

FWIW I have never been in debt except for our mortgage. When our washing machine broke we used the local laudrerette until we saved enough for a new one, we don’t own a car but if we wanted to we would save first, etc.

I have no debt other than my mortgage. Never have had

What can be shouldered and managed in one household won't necessarily be manageable in another regardless of how responsible they've been with their finances.

Absolutely, but that doesn't mean the person who have managed to get out of debt/poor situations by working hard and making good choices shouldn't be acknowledged for that. One persons misfortune shouldn't diminish other people's success.

The point I was trying to make is that it's entirely possible for two very similar households (in terms of size, income, age) to have worked equally as hard and to have made equally good choices but then something unexpected comes along which throws a spanner into the works for each ..... where irrespective of a similar, sensible approach only one of the households are able to manage it going forward without debt. Say, for example, each family carefully plans for a child who unfortunately is born with complex needs outside the remit of standard childcare. In household one this means one of the working adults gives up work to become a full time carer because specialist childcare would outweigh their earnings. In household two one of the adults reduces their working hours but they are fortunate enough to have family willing and able to help out a little with childcare so the financial impact upon them isn't as great. No-one could have predicted this. No-one worked any less hard or made poor choices but life happened and one household had outside support that the other didn't.

Conversely of course, one person's 'success' doesn't mean someone else's misfortune is always their fault.

Some mortgage companies don't look at your ability tp pay from previous credit.

I know because my ds1 is our broker. We have never had any problems and have recently swapped providers, and we have no credit history except mortgage, it is the same if we were taking out first mortgage where some companies are concerned.
If you are in this position pay to see a broker, it's worth it.

It doesn’t make you a better person (unless you’re insecure enough to need to be told you are...) to be debt free. It means you’ve had the ability to remain so.
no, it just means I made different choice.

DIdn't you read the title? It's not about being better of not, it's asking or saying that it's possible. So yes, it is possible, to be poor and debt free.

No need to be goady and try to bring insecurity into the mix JacquesHammer

adaline

Not sure how long you've been up here, but hope you are happy. How long have you been here?
We moved to EA, from friends and family, not easy without a support network.
Came back after 12 years though and have been back for 19 years now.

@drabarni - thank you! That's really sweet of you. I've lived here nearly four years now and am very happy :) don't get me wrong, it was really hard at times and I did question the decision more than once but overall it's been a fantastic experience.

I grew up in EA and moved to the NW. My quality of life is much better up here, even though I take home considerably under the national average, as does DH.

I think it is possible for some people, while not totally unavoidable for others.

My DP and I have both experienced debt, and we worked bloody hard. Became debt free, then our dog needed surgery to remove a tumor. She's a rescue, an older girl, so no insurance company would touch her. We now have a huge vet bill we're paying back each month.

Some people are able to live debt free, it doesn't mean they will continue to do so (unless they have savings that will account for every unforeseeable event). Just because you live debt free doesn't make you any better or superior than anyone else, just like being in debt doesn't mean you made bad choices.

I have no debt whatsoever , no mortgage or any other form of credit. It is easily possible
how is it possible to buy a home outright? I assume at one point you had a mortgage

If and only if you have stable income that exceeds your outgoings, then yes you don't need to borrow money.

But encouraged by all the advertising we're bombarded with, we want to borrow money. We are manipulated into wanting to have now and pay later. It's a whole industry devoted to persuading us to part with the money we have and even the money we don't have and I think it's very hard to resist.

Think it depends on circumstances. We have debt on a credit card to pay for holidays or large pieces of furniture . We can't afford to pay £000s upfront but can definitely afford x amount per month during the interest free period. It is debt but not beyond our means

@TabbyMumz

And what if you get hit crossing the road and end up with a permanent physical disability and a brain injury and can never work again? Not only do you have to continue funding your life but you might need to pay for care too.

@OnlyFoolsnMothers We did it as we both worked abroad in tax free countries (with rent paid) for 3 years each. And my dh’s job takes him out of the country for over half the year so he gets his tax back most years anyway. Between the two of us we managed to save over 200k in 3 yrs. I know LOTS of ppl who have done similar!!

@Thuglife .... thank you.

I get where you're coming from. I was a single parent too for many years. With hindsight, then yes, as it turned out, I made a 'bad choice' but without the aid of a crystal ball I couldn't have predicted my ex would cheat on me and leave. I well remember the constant worry and the utter despair of having to maintain an old car that was only ever used for essential journeys (to work mostly) and fear of what was going to go wrong next. I've known a fair number of women thrust into a similar position unexpectedly .... some were lucky enough to have family and friends rally round one way or another either by helping out directly with money or indirectly by providing rental property at an affordable rate, or by providing childcare etc., but not everyone can access the kind of assistance which makes the difference between debt or no debt.

It’s not a badge of honour to have no debt. Properly managed it’s sensible. If we buy something big where there’s a 0% offer available, we take it, it means our money continues to earn interest and it’s factored into the price anyway. Credit cards are paid off every month and we’re mortgage free so any “debt” we take on is entirely manageable.

Or do people's choices come into it? Hard work? Sacrifices they may or may not have made to get to where they are? The decision to maybe put off having children until later, the decision to only buy second hand, the decision to eat at home rather than go out? They're not valid choices that people make in order to become more financially secure?

100% agree. We did most of the things you mention and now our mortgage is almost paid off (it will be by the middle of the year). It was a bit shit at times but people have different goals don't they. Ours was to pay the mortgage off within 10 years - we're early 50s so many people will have done it much younger than we have but for us, this has meant we could overpay and still have a decent, if not luxurious, quality of life. We haven't had inheritances or anything but we have had some financial setbacks like everyone does. It certainly was not all down to luck.

But encouraged by all the advertising we're bombarded with, we want to borrow money. We are manipulated into wanting to have now and pay later. It's a whole industry devoted to persuading us to part with the money we have and even the money we don't have and I think it's very hard to resist.

Is it? I find those adverts horribly off-putting, I have to say! But I was raised in a home where adverts were seen as a REALLY BAD THING and my parents hammered it into me that material goods weren't everything.

I think the main problem with debt is people are impatient and want things now. They're not prepared to wait. They're not prepared to go without for a few months to save and buy things outright. I know people who've taken out loans to buy tumble dryers or dishwashers - why not just use airers and the sink? They're not necessities by any means but so many people have been conditioned to think they are. Likewise with the need to buy everything new, though I think the rise of sites like Gumtree, eBay and Marketplace shows that people are increasingly going back to buying second-hand again.