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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:
missfliss · 10/01/2020 20:46

@TabbyMumz

I don't think you understand. I'm not disputing that critical illness cover was affordable for you, I'm saying that for many people it wouldn't be.

In the event that for any reason I couldn't work, and couldn't get another job e.g. serious ill health etc. I really don't know how we'd manage, and i simply don't think you can always mitigate those risks.

I think the problem is that when you assert that it's all avoidable, you are coming across as judgmental of people who cannot do exactly the same as you, unintended or not.

unlimiteddilutingjuice · 10/01/2020 20:49

People in poverty have always found themselves in debt. That's not changed.
What has changed is that in the past "respectable" working class people would often have a fear of debt and avoid it if at all possible. My parents are from that generation.
Since the liberalisation of credit in the 1980's debt has lost its stigma and people do feel more comfortable using credit for discretionary spending, buying things new rather than second hand, having stuff now rather than later.
I'm quite old fashioned. I have a mortgage, a tiny overdraft facility and car payments.
Before this car we used to buy absolute bangers for £150 from exchange and mart. They would generally last up until their next MOT. The decent second hand Micra on finance was a step up but borrowing the money was still anxiety provoking because of how i was brought up.
Im well aware that I might have to take on debt if something unexpected happens and for that reason I try to avoid taking on responsibility for fixed payments unless i absolutely have to.
I think the worst thing is to have "managable" debt that suddenly becomes unmanagable because of events beyond your control.

HairyToity · 10/01/2020 20:53

As long as your job covers your outgoings, and you live within your means, then I think you can be debt free excluding mortgage and student loans. I got into some debt when I lost my job though. It was a change in circumstances, and my savings soon depleted. The maximum debt was £2,100.

isabellerossignol · 10/01/2020 21:03

I'd have gone straight into another job.

And what if you didn't?

TabbyMumz · 10/01/2020 21:10

"isabellerossignol

I'd have gone straight into another job.

And what if you didn't?"

I'd have sold stuff. I've already answered this. Several times. What would you do? Get a loan? Good for you.

Purpletigers · 10/01/2020 21:12

No debt here . Not since I was a student and had an overdraft which I paid off before it started to accrue interest . My student loan was paid off as soon as I could, before we had a house and before children .
We live frugally compared to friends, drive old cars , holiday very occasionally .
I think a lot ( not all ) of debt is avoidable . Lots and lots of brand new minis / fiat 500around here with R plates . Lots of new graduates buying a brand new car when they get their first job instead of saving and buying one for a few grand .

Besidesthepoint · 10/01/2020 21:13

Everyone saying 'of course it's easy, I do it' you really don't know how lucky you are and I think you're extremely ignorant to think that just because you can do it everyone else should be able to as well.

If you read this thread properly then you read that in most cases it IS possible to live debt free, but that it is not always easy and requires sacrifice.

Just look at some responses of people saying it is not possible:
Oh but if the fridge breaks I need a new one.
Answer: no you don't, it's not a necessity but a luxury.
Oh but when the washing machine breaks I need to replace it.
Answer: no you can wash by hand.
Oh but I chose to have many children while in debt and they're expensive.
Answer: this could have been avoided by living debt free before choosing to have many children.
Oh but I must have internet and a computer at home.
Answer: no, just go to the library

Paying off debt costs more in the end than paying for the thing outright. It is not always possible to live debt free, but in most cases people see luxuries as necessities. If you have acommodation, a matras, food, heating, medicine and basic clothing (in some cases a car for work if far away and no other travel possible) then you are done. The rest can wait.

AlexaAmbidextra · 10/01/2020 21:17

I’m completely debt free, no mortgage. I wasn’t when I was younger though. I think it depends very much on the stage of life you’re at.

isabellerossignol · 10/01/2020 21:29

I'd have sold stuff. I've already answered this. Several times. What would you do? Get a loan? Good for you.

Why are you snapping at me? I asked a genuine question. I don't understand your logic. Because if you are young and have only started into the world of work, what would you have to sell? You presumably wouldn't own much yet because you wouldn't have built up the finances to buy stuff. So you sell it, and it's gone, and then what? You wouldn't have years of work experience behind you to make it easy to find another job.

When I was young and redundancy hit us, we had very little to fall back on. It would be very easy for me as a financially secure 40 something to be fairly certain that I could walk into another job tomorrow, that our savings would see us through until we found another job, that we have enough equity in our house that we could sell it and rent somewhere until we got back on our feet. But none of those options were available for us when we were in our early 20s, because we didn't have belongings to sell, or the employment history to make job hunting easier.

That's all I'm asking. What do you suggest that people do who have run out of things to sell, and who have applied for every job they can find but have been rejected?

Drabarni · 10/01/2020 21:29

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.

This would scare me to death and i couldn't sleep at night if that was me. I'd be rubbish at buying everything on a credit card, no way would I keep track of it all or want to.

For most people being in debt/ taking credit is avoidable, for a minority it's unavoidable.
It isn't necessarily a bad thing, interest free credit/ credit cards can offer great bonuses for a start.

My own preference is cash for daily shopping and debit card for anything more expensive.
Trades people are usually online transfer.

We are all different I'm no better than my dsis who owes a fortune and lives her life on credit. She's happy, I'm happy and our different views amuse each other.

Purpletigers · 10/01/2020 21:31

I do think credit to live a lifestyle you can’t afford is stupid . You’re not fooling anyone but yourself !
Buy the fiesta instead of the BMW and the Motorola instead of the iPhone .

MAFIL · 10/01/2020 21:33

I've never had any debt except for a mortgage which is now paid off. However, I am old enough not to have needed to worry about student loans. It makes me sad to think that so many young people are starting their working lives saddled with debt already.

Justontherightsideofnormal · 10/01/2020 21:41

We try to live debt free (apart from mortgage). Owe 58k on mortgage with a house worth £350k I'm not quite 40. Both low paying jobs ( I use to earn a decent wage but put family before work and now part time on menial amount) dh works part time. It works for us.

Rose789 · 10/01/2020 21:57

It is possible to live debt free, and of course some people do. Which is fine that’s their choice
For some they choose to be in debt e.g spending on credit cards for holidays and clothes. Which is fine that’s their choice

For others they have no choice but to be in debt and once you’re in debt it’s a bloody struggle to get out of if you’re lucky

For others it’s impossible to get out of debt.
Not fine and not their choice

Geraniumblue · 10/01/2020 21:58

I’m not sure that washing things by hand is particularly practical. They would be dripping for ages with no spin dryer - where would you dry dripping bedding and towels in the middle of January? Even the Victorians had a mangle. Also, just going to the library for the internet - I live in a village -the nearest library is a train ride away and costs about £5 return.

Chuffit · 10/01/2020 22:19

@Elbeagle
My house cost £700 when we first married.
We saved hard and paid cash.
It was a bit of a shed, but structurally sound with a decent roof, so we did it up as we went along.

thehorseandhisboy · 10/01/2020 22:32

Yes, you can live without a fridge, washing machine or the internet if you have all the time in the world to shop nearly every day, somewhere to hang out clothes and bedding washed by hand for days and didn't need to look for a job/keep in touch with people/respond to correspondence so it wouldn't matter if the library computers were all down or in use when you walked the 5 miles to get there.

Unfortunately, that wouldn't leave you with much time to work to earn money.

JosefKeller · 10/01/2020 23:23

where would you dry dripping bedding and towels in the middle of January?

in the shower... you do realise some of us have done exactly that?

It's actually easier to spend a bit more and go to the laundrette for bedding and pay to use the dryer, but when you haven't got a washing machine, you don't use huge towels either.

It's not ideal, but it's not worth going into debts either. When you cannot afford a decent washing machine upfront, you really can't afford the credit either - that was my reasoning. It's so not a big deal.

Strictly1972 · 10/01/2020 23:33

Yes we have a mortgage but no other debts. It’s taken us a long time to get here. I think we are fortunate.

Besidesthepoint · 11/01/2020 01:08

*Yes, you can live without a fridge, washing machine or the internet if you have all the time in the world to shop nearly every day, somewhere to hang out clothes and bedding washed by hand for days and didn't need to look for a job/keep in touch with people/respond to correspondence so it wouldn't matter if the library computers were all down or in use when you walked the 5 miles to get there.

Unfortunately, that wouldn't leave you with much time to work to earn money.*

I have done this while I had a fulltime job! You might want to listen to people telling you why they are debt free instead of going but... but...but... and saying it is impractical. It was impractical! But it was cheap! It was also possible. I spent my days working, doing a food shop on the way home, cook and then do the chores. I just didn't have a lot of free time. I didn't have a tv either so that kind of helped.

Ellisandra · 11/01/2020 01:19

What a pointless statement. Of course it’s possible to live debt free.
I do.
If I wanted to be smug and patronising, I’d tell you about living with no stair carpet for 4 years until I could afford one, instead of using credit.
Which did happen.
But bottom line? I’m debt free because I have a high salary.
So of course it’s possible - but I don’t preach to everyone else, like I’m so extraordinary and admirable for it.

Besidesthepoint · 11/01/2020 08:02

What a pointless statement. Of course it’s possible to live debt free.

It's not a pointless statement, it is the answer to the question in the OP.

adaline · 11/01/2020 08:02

I’m not sure that washing things by hand is particularly practical. They would be dripping for ages with no spin dryer - where would you dry dripping bedding and towels in the middle of January?

It's not at all practical but it's free. We used to get as much water out of them as possible over the bath, and then hang them over the shower curtain rails overnight. By the next day they were reasonably dry so they'd be moved elsewhere so we could shower.

Tumble dryers and dishwashers just aren't necessities - they're certainly useful and nice things to have, and I certainly missed my dryer when it broke, but I managed perfectly fine without it. Just like I've managed to wash clothes in sinks and baths when I've been too poor to afford a plumber.

adaline · 11/01/2020 08:07

Everyone saying 'of course it's easy, I do it' you really don't know how lucky you are and I think you're extremely ignorant to think that just because you can do it everyone else should be able to as well.

All the thread title asked was "is it possible" and lots of people have been perfectly honest and said "yes", because, well, it is possible for them.

I've been dirt poor. I've been at the stage where I can't afford to put the heating on or to buy food that wasn't 18p loaves and value beans. I've had to wash my work clothes in the bath numerous times because I couldn't afford to fix the washing machine and had no access to any spare money or credit. It sucked and it was bloody hard but I still managed to stay debt free. I just went without.

Like a PP said my logic was that if I couldn't afford to buy it outright, I probably couldn't afford to be in debt either.

Besidesthepoint · 11/01/2020 09:17

Too many people are having trouble with comprehensive reading on this thread. The question is: is it possible to live debt free aside from mortgage. People answer yes, but not always easily, and more people (more, not all) could do it if they had the right mindset. Why then do people feel the need to reply that they couldn't? Well, maybe because you aren't one of the "more people" then.

I do think it's weird that people say they can't save a single pound but can take on a new debt which means extra expenses every month. So if you have zero, how do you pay the new loan oayments then? To me that sounds like you made a bad financial planning decision somewhere.

For what it's worth I do think that student loans can be worth taking on. If you want to get a degree in something that will better the rest of your life then you might want to make this decision and be in debt for a while. Just don't do it if you want to be a SAHM or if it pays peanuts, because that is bad financial planning.