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?

@JosefKeller are you not going to answer my post?

There'll always be those who will say it's impossible. This thread has shown. It's sad that people think being in debt is the norm.
I think it's all about your mindset.

It could be because I spent my growing years, Uni and early work life in a country that had no benefits or credit cards so it has never been an option.
When I worked and earned very little, I still ensured I lived below my means so that I won't be in trouble if I became ill or lost my job. When I earned more, I lived at the previous level. I don't spend money on new gadgets and phones. I'm currently typing on an old Honor phone and if it breaks, I'll whip out the old block phone as I did last year until I must buy another. I've bought very good cars at £600 because I couldn't bear buying on finance and having debt.

My dishwasher broke last year - I've cleaned it and disconnected it. We've been washing by hand. When my washing machine broke, I washed by hand till I could afford a low cost one. I just can't imagine buying one on a credit card. Maybe it's smarter to have done, but I really hate paying interest and owing for things.

I know there'll be the 'oh what if the earth blew up' crew but look at your circumstances. Did you really need to spend that much at Christmas? Did the kids need all those presents you put on the credit card? Do you need that expensive phone you're still paying for? Why that leased car? Debt is not normal.

I've joined a 'no-spend 2020 challenge' to see if I can get more savings. My colleague who is in debt turned her nose up at it saying 'what about Friday nights? What about if I need shoes? I don't have time to make lunches'

Yes, there are exceptions but are you really an exception? It's the little things.

I don’t have any debt or a mortgage. Not due to luck but my dh dying. I’d rather be knee deep in debt than what I’m living in now.
I have no savings or pension so the future is as bleak as life just now

which question now?

What would you do if all your savings were gone, you had no job offers and no money. What would you use to buy food and electric?

Unless you have a lot of savings to pay bills like council tax, water rates, car and house insurance etc upfront as they become due.

Council tax is for me £2500 per year.

No point in paying it up front as there is no discount soo pay £250 per month for the 10 months. Same with water rates.

Car and house insurance get paid monthly or up front depending on whether I am feeling flush with money or haven’t had a big bill in recently

Yes you can live debt free but only with savings

It’s funny how a mortgage is discounted as proper debt because it’s essential debt to pay for the roof over your head but credit card debt to pay your rent is just poor choices.

Amazing lots of school leavers always seem to find jobs? Primark is always recruiting. When I was made redundant I registered with 5 agencies. I literally got a few calls a day from them with offers of jobs. Do you need to look at your skills?

The assumption that everyone has a Primark handy is hilarious. I actually do have one fairly near where I live, but they're recruiting, and if I lived where I do and needed a job there wouldn't be another one within commuting distance.

I've never been unemployed, for which I thank my lucky stars, but I can promise you that jobs are hard to find in the area where I live. Even for hardworking and/or well qualified people. And the thing is that once you are unemployed and your money has run out, it's not as if you can magic up the money to relocate.

Sorry, I meant they're NOT recruiting!

No, I actually chose to have them in a long term relationship with two adults working full time."
Wire brush....I didnt have kids until I felt we were in a good financial position. I was married and had a mortgage and a good career. I made sure that if in the event of splitting with my husband, I could support them on my own.

Good for you. Totally irrelevant to my comment though as it was in response to an ignorant fool who assumed I just decided to pop two kids out for the benefits.

The only logical answer OP is it’s possible for some and impossible for others

"What would you do if all your savings were gone, you had no job offers and no money. What would you use to buy food and electric?"
Right....I would never let myself be in this position. As I'v said, I'v always saved, so I always have a backup plan. It would take a long time for my savings to run out. I've always made sure my mortgage was protected against redundancy and critical illness. I've skilled myself up so as I can always just walk into another job. I've been made redundant 3 times. The longest I've been out of work was 3 months, and that was my choice because I wanted a bit of a break and wanted to wait to take a better paid job. I could have walked into any admin job within days as I'm employable and can travel. I've always got a good backup of food in the cupboards. This situation wouldnt happen for me. If it did, I would do my utmost not to take out a loan. I would sell things first from the house. I'd do anything but go into debt.

Sometimes debt is unavoidable
For example having a car on finance, I drive alot for work get paid mileage but no company car , I couldn't afford to be driving a ctappy car so pay 130 quid a month for car finance to drive a two year old ford Bmax , I did pay a big deposit though
Also I am going back to work in March after maternity leave and haven't had a full wage since July last year , my husband had covered all the expenses but iv added a little to the credit card also (about a grand ) will start paying it back in March so I'm not worried

"Good for you. Totally irrelevant to my comment though as it was in response to an ignorant fool who assumed I just decided to pop two kids out for the benefits."
It was an example of how choices are relevant. And how it is possible to be debt free

We also got married last July so all the savings we had paid for the wedding, its just money I dont worry about it , just dont get too far in debt I say x

My parents always were/are (apart from mortgage). DH and I owe a very small amount of student loan - apart from that and mortgage we have no debt. I would have thought that was pretty normal - maybe I'm naïve? Are you sure your friend wasn't including mortgage or maybe student loans?

I've never had debt, the thought of it frightens me to death.
Mortgage free, never had a credit card and have savings.
Many years ago my husband ordered a credit card. I went mad and cut it up as soon as it hit the door mat. I told him I wasn't having any of that nonsense in our home and he either pays cash or goes without.

What would you do if all your savings were gone, you had no job offers and no money. What would you use to buy food and electric?

I’m going to ignore the fact that I have a very supportive family who I know would support me in those circumstances.
I would sell off possessions possibly?
If there were NO job offers in any sort of job at all. Well then I would have to claim benefits...I am in Ireland where I think it is €196 Per week. And then an extra 30ish per child as far as I can see. And I forgot there’s the child allowance which is €280 a month too. So that would mean I would get just over €1300 per month. I could make that work for sure!! I might get less as we own our home outright. But we have very little bills as it is.Our monthly outgoings are;
Electricity
Childcare (which wouldn’t be needed obvs)
Food
Fuel
Life insurances
Mobile phones
We could probably sell a car if necessary...we have no finance on those.

@TabbyMumz

I may have missed it but what would you do in the event of ill-health, accident or disability ?

As I'v said, I'v always saved, so I always have a backup plan. It would take a long time for my savings to run out.

Did those savings appear overnight? What if the above scenario had happened before you had any substantial savings?

If it did, I would do my utmost not to take out a loan. I would sell things first from the house. I'd do anything but go into debt.

That relies on you having stuff to sell in the first place. And what when that’s all gone?

You really can’t imagine someone not being in your position, can you? You can’t see past the end of your own nose.

Well then I would have to claim benefits...I am in Ireland where I think it is €196 Per week.

Are they instant? In the U.K. universal credit can take 6 weeks before any payment is made. You can get an advance but that’s debt so not allowed on this thread.

I think it must be much harder for people who are just starting out in work nowadays, than it was when I was young, because house prices are so high (in most areas) plus many are saddled with huge amounts of student debt.

@wirebrush I have no idea 🤷‍♀️

Just out of interest Chuffit how did you buy your house if you’ve never had debt?

"@TabbyMumz

I may have missed it but what would you do in the event of ill-health, accident or disability ?"
I've already answered this. We have been hit by disability. We had critical illness cover and can claim disability allowance. We've paid off the mortgage already, so are fine.

@WireBrushAndDettolMaam I just looked it up it would take 2 weeks.