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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:
Stinkycatbreath · 10/01/2020 19:24

I dont have a ridiculously high wage but am debt free aper from my mortgage. I own my car and look after it to make sure I maximise its longevity. I dont smoke and buy all clothes second hand. I realise this is not possible for all people and people live hand to mouth getting into debt just to secure the basics for their families. Yes I am privileged and very thankful for the fact that depite the fact we had nothing growing up Iearned to value things and not to want what I cant have. I have no desire for "stuff" it makes me quite anxious. I attribute this to growing up poor.

ruby2020 · 10/01/2020 19:25

I think most of the problem is that peoples expectations are a lot higher these days. In the past people would have saved for things they couldn't afford, or done without altogether - things like holidays, latest phone, various other luxuries were viewed as just that - luxuries. Whereas I get the impression these days that its expected to have holidays abroad, up to date gadgets and god knows what else even if it's not really in your means. So people are too quick to spend and spend, put things on credit and quickly build up debt because they don't know how to budget/live frugally.

Just my two cents.

Personally I don't put things on credit. If I want something, I save up, even if that takes months, years even.

WireBrushAndDettolMaam · 10/01/2020 19:26

I do already get that. Of course neither is sustainable. No-one is going to advise you to use a credit card to pay for your rent or mortgage but in that situation when you haven’t had any money for weeks and no idea when you will again your back is against the wall and you do what you need to do. Sometimes even best choice available to you is still a negative one (in terms of impact) but the alternative is far worse. Rockhard place.

FiddlesticksAkimbo · 10/01/2020 19:37

A rule of thumb that I picked up somewhere along the line for cautious budgeters was that if your monthly outgoings are more than one sixth of your savings you should do whatever is necessary to get yourself to that ratio (baked beans, live in a hovel, three jobs).

Once you have six months of outgoings in the bank you can ride out an awful lot of problems. If your circumstances change then often within six months it's possible to adjust your life to accommodate it.

Incidentally, I'm not saying that people who don't follow that principle are somehow morally deficient. But doing so certainly makes life a lot less stressful Grin

TabbyMumz · 10/01/2020 19:40

"Critical illness cover is hugely expensive and I don't think the premiums are affordable on top of childcare etc."
They were for me.

Hirsutefirs · 10/01/2020 19:42

Bad things happening to people isn’t directly about how “normal” it should be to carry a permanent load on cards.

TabbyMumz · 10/01/2020 19:42

"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?
I'd have gone straight into another job.

thehorseandhisboy · 10/01/2020 19:43

It's hard to get critical illness cover at any price if you've had considerable health problems in the past or live with a chronic, but manageable, illness though TabbyMumz.

Or that's my experience, at least.

TabbyMumz · 10/01/2020 19:47

"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 ?"

Wire brush...do you always do this? The thread is about if it's possible to live without debt. I and many many others have said that we think it is. You clearly dont agree and that's entirely your choice. But you dont need to try and put people down just because they've managed their life and finances different to you. I've explained how I've never had debt and how by planning, I would avoid it at all costs. Just because you dont understand that doesnt mean you should turn it into something quite nasty. I have answered your question, several times, as have others. Millions dont have debt. You may have to accept that.

ImTheCaddy · 10/01/2020 19:49

I'm debt free. About to get mortgage. If I can't afford it I don't buy it!

AllergicToAMop · 10/01/2020 19:52

You know y'all are going to be in newspapers, yeah?

oblada · 10/01/2020 19:53

It is possible but it's not necessarily sensible or needed.
We don't have debts per say apart from mortgage in that what we owe on the credit card is less than our savings. However it is handy to use credit cards to budget at times (spread the cost of something) and also (mainly at times) for the protection it offers. I always buy flights on the credit card to ensure I am protected if something goes wrong and same for big purchases. We have in the past bought cars partly cash partly on credit (credit car usually, not a car finance thing). If you use credit cards on 0percent interest and use them wisely then it is worth it.

JosefKeller · 10/01/2020 19:55

You know y'all are going to be in newspapers, yeah?
so what if we are?

You do realise that it's a public forum, anyone can read it, and threads are shared on Facebook, commented up on reddit... I can't see why newspapers would be remotely interested, but so what if they are.

WalkAwaySugarbear · 10/01/2020 19:58

It's very possible to live without debt, if you earn well and / or have savings.
We have debt, we have spent (I think, possibly more) about £25k on our credit cards this year alone. I love credit cards, they streamline my finances. We do however always pay in full and have not paid any interest.

Circumstances do change though and we have been through redundancy and maxed out cards struggling to repay, this now makes us super cautious to have plenty in liquid savings.

WireBrushAndDettolMaam · 10/01/2020 19:58

Just because you dont understand

Grin and you say I’m nasty?

You haven’t answered my question. You’ve just repeated “I would never be in that position.” “I’d be fine”.

AllergicToAMop · 10/01/2020 19:58

I can't see why newspapers would be remotely interested, but so what if they are.

This thread just looks like a journalist fishing to me. I know it's public forum, bit most still don't like this afaik.

Original poster
Moneytalkone · 10/01/2020 20:00

Not a journo I just NC’d

OP posts:
Invisimamma · 10/01/2020 20:08

Dp and I are debt free. We have a mortgage but no other debts/credit cards. We wait until we have the money to buy something before we get it. Joint income around £35k, so we're not big earners, but we have a nice life.

We have some savings, e.g. Enough to replace white goods, go on modest holidays, keep on top of home repairs. However, if we had to pay for something big unexpectedly that we hadn't had notice to save for like a new roof, boiler or car, I think we'd have to consider credit.

54321GoGoGo · 10/01/2020 20:12

It's funny how some of these threads come about...People do not choose to be in debt those who are financially aware.
Financial situations change, wrong investments losing well paid jobs. Many factors can contribute resulting in borrowing.....

It's also cheap to borrow.... investing in stock market couple be a better way than paying off the mortgage.

CatToy · 10/01/2020 20:12

Today, for the first time since I was 19 years old, so twenty years, is the first time I have been debt free. My DH and I have cleared everything in the last 18 months after years of being a bit careless, having fun and not very savvy.

We are also saving for a deposit for a mortgage so we will be in debt again by the summer, but only mortgage debt. We both are earning good salaries now that mean we should be able to live off one and save the other. I am ridiculously excited about this. I want to tell strangers in the street!

TabbyMumz · 10/01/2020 20:20

Wire brush...you clearly want me to say I would get a loan. I wouldnt, therefore I wont say it. Sorry, but not sorry. I've managed my whole life without one, as have many others. If you want one or have had one, that's up to you. Not really my business. I've simply answered questions as to how I've managed. As have many others.

JosefKeller · 10/01/2020 20:21

well done CatToy

WireBrushAndDettolMaam · 10/01/2020 20:23

I asked what you would do. Not what you wouldn’t do. Doesn’t matter. Don’t answer. I’ve read it enough times. You’d be fine.

HollyBollyBooBoo · 10/01/2020 20:30

Of course it's possible but sadly it appears to be the norm nowadays. Apparently the average unsecured debt is £15.4k per family in the UK.

TabbyMumz · 10/01/2020 20:43

WireBrushAndDettolMaam

I asked what you would do. Not what you wouldn’t do. Doesn’t matter. Don’t answer. I’ve read it enough times. You’d be fine.

I told you. I'd sell stuff. Anything I'd need to. Furniture, jewellery, cars, downsize the house. Whatever I say you'd have a further question....you asked me "what if you didnt have anything to sell."...so you know I answered? Because you questioned my answer.....because you desperately want me to say I would take out a loan. Well I wouldnt. I never have. Neither have loads of others.

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