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?

Possible...

For some, if you are lucky.

I don't think its a reasonable goal for all, or achievable for all.

I don't have a mortgage - is that down to hard work, good judgement, or luck.

It's down to 'luck'... my parent died and left me enough to buy a right to buy council house with a significant discount. When I sold it and had to move to a more expensive area, my living parent helped with the cost difference.

I do have debt, because I don't have savings, I don't have any fall back, slack, spare to pay for emergencies, so when the boiler died and the patio doors almost fell out, I had to get a credit card to pay for those.

Again, was that poor judgement, or bad luck - I'd say bad luck that those two things happened before I'd had opportunity to earn enough to build up savings and now I can't build up savings as that money is servicing a credit card instead.

So yeah, you can live debt free if you can buy outright and already have 5 to 10k in savings for emergency situations.

I doubt many folk are in that position though.

I dont have debt and our mortgage is paid off. We live within our means, our cars are second hand and paid for outright we dont have expensive furniture on credit but prefer upcycled bits. I dare say some people wouldn't like our lifestyle my ds was bemoaning it the other day compared to his friends but I told him I was not prepared to spend a fortune on fancy gadgets and cars like his friends parents do. It doesn't matter to me whether we've kept up with the Joneses or not.

Getting into serious Debt is multifactorial and one difference in those factors can cause a spiral.
A. Person loses job, has no savings ,lives in a rural area where there are few jobs.
Has to travel to find a new job and so racks up debt.
B.Person lives in an urban environment, finds a new job quickly ( shops, bars, businesses and minimal transport ( can walk).
I
Also hindsight is a wonderful thing.

Mental health issues cause debt and debt causes Mental health issues, its a horrible catch 22 situation.
I would agree that we live in an environment where we are bombarded with adverts and many people are caught up in this.
The ability to delay gratification is a massive factor.
A.
Person sees shoes £100.
Waits until they can afford them , if they are lucky they go on sale -now £50

B.
Person sees shoes £100 and buys on credit card apr 24.9%.
Is a bit short next month so doesnt pay off, the shoes eventually really cost £125 by the time they pay for them .
Thats £75 difference -same shoes

Disclaimer -yes I know not everyone can afford to spend that much on shoes

My hat goes off to those who have managed without a washing machine to avoid getting into debt. It would be an acceptable debt in our household tbh. Or I would get a secondhand one.

If you’re struggling on minimum wage with no reserves, then it’s probably very difficult to avoid debt.

Both DS last two girlfriends were Polish. They did NMW jobs, rented a room (not together) in a shared house, had no credit cards and saved money. As did DS’ other Polish colleagues, when he worked at a supermarket - they thought it was great here!

We have always avoided debt as much as possible. We did have a mortgage but paid it off after 25 years. We did get a loan to buy a car when the one we had blew up (car was essential for DHs work) but paid it off inside a year. We use a credit card for all spending but pay off in full every month and get cash back rewards. It hasn’t always been easy but unless it’s essential we don’t have it if we can’t afford it.....

I think it depends on your circumstances. If you have a low income then you may have very little or no disposable income to manage emergency or unexpected spend, even to have a holiday or deal with Christmas. It could be really difficult to survive and stay out of debt.
We have a mortgage but otherwise debt free, We use the credit card but pay it off monthly. I’d love to get credit and go shopping tbh but had paid off a large debt in the past that was painful to pay off. Once bitten .....I feel a lot better not having multiple debt on my shoulders even though I often save to get what I want.

We’re debt free apart from a mortgage because I don’t like the worry of having debts. We fortunate in having a small amount of savings though so if we get an unexpected expense we can absorb it, not everyone can do that.

Yeah definitely. We do have our sofas on a 4 year interest free thing but we could have bought them outright to be fair - but we decided to bank the money in our savings and utilise interest free!

Manageable debt is not a problem. I have quite a bit but can easily cover the repayments. We wouldn’t be able to give our children the lifestyle that they currently enjoy without borrowing. YOLO!

Of course it’s possible. My partner and I are completely debt free. No mortgage, no credit cards or loans etc.
I was always taught to live within my means. If you wanted something you couldn’t afford, you had to save up for it. When I had a credit card, I paid it off every month. Why waste your hard earned money on paying interest?
I did once have a mortgage which is paid off now thankfully

I've always lived debt free since I split from my husband in 1984....and I've always had a low income. I just don't buy anything I can't afford.

We are on a low income and debt free - most things they want me to buy I don't need nor want. And things like a broken washing machine etc. are expected expenditures and so saved for in advance.
Reasons for debt would be "accident / illness not totally covered by insurance"-related and be accompanied by scaling down spending on other things to minimise the debt.
But then - we live centrally so do not need a car to get to work, do the shopping or see a medic, I don't have to follow a dress code so jeans and a shirt are fine for work, etc. so it is comparatively easy for us to not spend.
On the other hand - want I want and can't pay for needs to wait until I can.

Having been a bit overloaded with debt when I was younger, I think being debt free is much more pleasant and less stressful. You have more money each month to choose what to do with. I do use credit cards but only when I know I can pay it off in full when the payment is due. Enjoy your freedom and maybe pay extra off mortgage so it’s paid off earlier

I think it depends on your hour working hours and financial situation. I would like to think it could be possible and only have a car and mortgage or rent to pay plus bills.

Of course it's possible.

Of course it is possible. Even people only a low wage can usually avoid debt most of the time if they want to by saving first. Many people don't mind some debt though.

Yes it is. Our only "debt" is our credit card which we pay off in full each month. We do not have a mortgage either.

I think it's possible but difficult to avoid on very low incomes.

It can be done but it's not easy for some.

Well let's hope everyone doesn't decide to live debt free or that will be the end to free bank accounts, millions of people in the financial industry out of jobs and the economy will essentially combust!

It's the same when these idiots jump on mumsnet and come away with "why do people buy new things when you get almost new second hand?". Well dear, if no one bought new, you wouldn't be able to get your hands on anything second hand would you? Living frugally and saving for everything is fine but the way the world is now, we actually rely on people taking debt on. I have a home improvement loan and about a grand on a credit card and a mortgage. I couldn't give two shits what anyone thinks. It's affordable debt and I wasn't going to save for 3 years to get a new kitchen when I didn't have to. I cook ALOT. I'm happier now that I have a new kitchen and my decision to take debt on to get that new kitchen literally affects no one!

It is possible....like others have said it depends on personal circumstances and what people prioritise. I worked in a bank for 24 years and having dealt with people in debt for many of those years have always been quite careful with money. Always had a contingency in case of issues. I have had times when I have had money owing on credit cards ( husband made redundant twice) and did have a mortgage but it was always my priority to clear those ASAP. I’m now debt free and mortgage free with a comfortable amount of savings but I’ve probably not been abroad on holiday as much as others and don’t impulse buy. I go for practical over prestigious, but I don’t knock anyone who has different ideals and priorities.

We literally have no debt except our mortgage. No credit cards, no overdrafts, no car finance, no phones on contract. I agree it’s easy.

We are and were debt free from mid 40's on.
However..I often question WTF for.

Now, as I sit in my mortgage free house, looking across at my partner I wonder where the years went. For decades (2 of them actually) we shunned everything to arrive...eventually debt free.

But all the money in the world will never give me back my wasted younger years, the nights we stayed in to save money, the years that passed without holidays.

For us personally it came at a huge expense. If my numbers came up tonight, it wouldn't turn the clock back...that's gone and along with it 20yrs of my life.

If I could do it all again, I'd definitely do it differently. I wouldn't have overstretched myself that's for sure.

I remember my Dad saying to both of us "Get out and enjoy yourselves, you're only young once" But we were obsessed with becoming debt free.

This isn't actually the dream I imagined. We don't have credit cards. We don't want to get into debt to buy anything as that would contradict the past 20 fucking years! So, we are both stuck in a rut. Saving again to pay for things out right.

Pretty miserable TBH.

By comparison friends we used to know really well, got a council house, never aspired to buy it, the house is lovely, huge front and back gardens. They have a new car each, go abroad every year. And should they lose their job or when older go into care their home will not be repossessed to pay bills.

I often ask myself who got it right....I'm pretty damn certain it wasn't us.

I’m debt free - mortgage nearly paid too😊

I have no debt at all. No mortgage, no overdraft (paid that off over 5 years ago) no credit or store cards, no car. I live hand to mouth.