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?

"Did those savings appear overnight? What if the above scenario had happened before you had any substantial savings?"
I've had savings ever since I got a job at 18. I didnt buy a house until I had a good well paid job and I could afford it.

I've had savings ever since I got a job at 18.

Substantial savings enough to cover all your outgoings for several months from as soon as you turned 18? Wow. You must have been earning a fortune and living at home with no bills to pay.

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.

What would you do if you had only just entered the world of work and hadn't yet had time to build up savings? Or experience so that you are able to walk into another job?

The people who benefit from other people being in debt have convinced many fools that continuous debt is normal.

What would you do if you had only just entered the world of work and hadn't yet had time to build up savings?

It’s fine- she had instant savings overnight on her 18th birthday. She prepared herself from birth as all decent members of society do.

I half suspect we’ll be told she can produce electric by rubbing her hands together and has trained her body not to need food for months at a time in the event of a catastrophe.

"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?"
Yes, I've bought stuff when I've been able to afford it. I have enough to sell and am employable, so again, I'd be fine.

"You really can’t imagine someone not being in your position, can you? You can’t see past the end of your own nose."
Of course I can imagine it, because plenty people dont plan. You really cant imagine how you can plan ahead to avoid this situation. I've never bought anything I can't afford. So my pay is my own. I dont pay for things monthly, so if I lose my job, I dont need to worry about the car being paid off, or the sofa, or anything.

I'd be fine.

Oh, we know.

@TabbyMumz I get your point but I think most ppl at 18 are actually still at home, most 18 yr olds in Ireland are only finishing Secondary school the year they turn 18 anyway.

What would you do if you had only just entered the world of work and hadn't yet had time to build up savings?

that's exactly when you do start building savings... but renting a cheap room in a house share, by having very little spendings and saving as much as you can.

Of course you don't suddenly start saving easily when you rent a house with garden, have 2 cars, 3 kids

I didn't plan for DH to leave me when I was giving birth, I planned for me to die - or at least be unable to look after the baby for months. We needed to have a way for him to work AND look after the baby in case he had to. (which is pretty much the same). You can't plan everything, but we didn't plan to have a child with no back-up whatsoever.

It's not luck to make choices. You can think it's a ridiculous way to think, but it's very possible.

All these silly questions anyway. Very much doubt you'd get much of a loan aged 18!!!

Very much doubt you'd get much of a loan aged 18!!!
sadly, you can start accumulating store cards and credit cards very young. It's as easy to go into debts as it is easy not to.

"WireBrushAndDettolMaam

I'd be fine.

Oh, we know."

You've just let yourself down big style there. You just dont like the fact that other people plan a bit more. I'm not apologising for my lifestyle. You asked how I've lived without debt. I've told you. You dont like it that I've have answers so have resorted to nastiness.

that's exactly when you do start building savings... but renting a cheap room in a house share, by having very little spendings and saving as much as you can.

But even cheap rent would have to be paid for and if you lost your job and your money ran out...

When we were newlyweds, my husband was made redundant when the company he worked for folded without prior notice. When our savings were gone, we ended up having to borrow to buy food, because my income alone didn't cover our bills. We weren't reckless, we didn't have two cars and we certainly didn't eat out and go on holiday. But our money ran out. We were only young, so we hadn't had time to build up a fund to cushion us.

Totally possible as long as you have enough money.

"It’s fine- she had instant savings overnight on her 18th birthday. She prepared herself from birth as all decent members of society do."
I worked from 18, paying for a shared room in a house. Not apologising for that.

Ok tabby so you have paid off your mortgage already. In the scenario where most people are -I.e they do have a mortgage or rent? How would the rest of us plan for that though. Critical illness cover is hugely expensive and I don't think the premiums are affordable on top of childcare etc. Also I think the amount of cover for mortgage repayments is pretty limited.

Funnily enough my husband and son would be far better off if I died ( financially) than if I developed a condition that rendered me unable to work.

Pretty depressing

I pay life insurance of course already, and home insurance and the other

I worked from 18, paying for a shared room in a house. Not apologising for that

And nor should you. But how would you have paid for your food etc if you had lost your job after just a couple of months?

You've just let yourself down big style there.

Let myself down to who? You? Oh no!

You dont like it that I've have answers so have resorted to nastiness.

You haven’t answered. Because like I said- you can’t.

I worked from 18, paying for a shared room in a house. Not apologising for that.

I worked from 14. Full time from 17. Paying for my rented house from 19. And ?

It's possible to be debt free. I don't use credit cards, kept on working even I hate my job and budgeting. I am 45, still have 10 years of mortgage. It's only recently I took on a 3 years interest free car loan to replace my 15 years old car which should be paid off before the 3 years interest free period.

No holidays and expensive clothes/bags/shoes, no cleaners

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.

To be fair, inability to see the total difference between those two types of debt is at the heart of the problem!

I see the difference between the two debts. But The need is the same. They’re both paying for a roof over your head. If I could have taken a mortgage I would. But my options were credit card or eviction.

I see the difference between the two debts. But The need is the same. They’re both paying for a roof over your head. If I could have taken a mortgage I would. But my options were credit card or eviction.

But one is a debt to buy an asset. Your net worth is not affected by it. The other is borrowing for consumption. That's usually a bad idea.

What would be comparable would be using the credit card to pay rent and using it to pay the monthly mortgage payment. Necessary in an emergency, but neither of those things is sustainable.

Sorry @WireBrushAndDettolMaam, I think you're saying you already get that.