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?

xenia

Are you on glue my love?
You have just gone up in my estimation.
I never thought I'd hear you utter "I am very lucky*
Aw, you're human x

Well, of course it’s possible
It’s also very possible to use debt to your advantage. Cash back cards, stoozing, borrowing at 0% when it’s available for purchases etc etc.

Very few who get into property development, for example, ever have 100% of the actual capital up front... they fund renovations and building work via the bank.

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!

Thank god for this refreshing post! I get so sick of reading the same ‘we scrimped and saved and only ate beans’ lot sneering at anyone who gets anything on credit.
I got my kitchen on 0% too. It’ll be paid off this year and I don’t regret it one bit. Cheers

I pay council tax, water, car insurance, car tax upfront. I save for it through the year and pay the bill in full. Less direct debits.

Money is created when someone borrows it so it is impossible for everyone to be debt free otherwise there would be no money. The money you have in the bank represents someone else's debt.

Debt is fine as long as you can manage it. That’s how extremely rich people make more money. Leverage to the hilt and take risks.

I don’t have any debt at all . I wouldn’t sleep at night .

I used to be in terrible debt, ended up having to declare bankruptcy and it was the best thing I ever did. Paid off about 6k of it (just over a 1/4) for 3yrs, then my student loans finished the year after. Finally my money is my own, couldn't get an overdraft, finance or credit card even if I wanted to but it is so worth it. I rent so don't have a mortgage and won't be able to get one. Almost did the salary sacrifice thing for a car but backed out at the last minute and decided I'd rather have that £200pm for travel/holidays. I'm very impulsive but determined to stay debt free now (other than juggling bills a little if I am buying something big or have an unexpected bargain of a trip....

I am so grateful to be out of debt now after being in it for about 30yrs

Something very smug about people who are debt free..not everyone but a definite air of worthiness on some of these posts.

I agree - but some of them also sound like they’ve had self-imposed, unnecessarily miserable lives!

@YappityYapYap and @contentedsoul’s posts are refreshing - YOLO FFS.

I confess I did feel very very smug when I finally got out of debt. It was a millstone around my neck. Now I can afford to ( pretty much) buy what I need without borrowing. There were, though, years of hardship, negative equality, ridiculous credit card debts because after a divorce I simply couldn't manage on solo earnings. I regularly do Kate now to a food bank, if they had existed 30 years ago I might have used one. I am so lucky and I feel genuinely bad about those who aren't yet in my position and those who never will be. If you are poor it's so much harder to be debt free.

Donate. Bloody autocorrect and not previewing my post!

I have a lot of debt but it is manageable and at some point I will pay it off in one go.

I am not particularly a big spender on credit cards but a lot has gone on children and setting them up with what they need.

I have never worried about how to pay off debt as something will turn up.
I look at it as numbers, sometimes they are minus numbers and sometimes they are plus.

I know how to make money. I just can’t go to a regular job and earn money.

Dp and I were discussing my career prospects.
Nearly 60, no qualifications, not even O levels and riddled with arthritis and have a dodgy back and haven’t had a normal job since 1986

Yes. I am 45 and never had any debt, never had a store card or credit card. My mortgage is my only debt, and that is £310 per month (will be paid off the day I hit 60). I have never earned more than £24k per annum.

I get so sick of reading the same ‘we scrimped and saved and only ate beans’ lot sneering at anyone who gets anything on credit.

who's sneering? Have you got a chip on your shoulder or something?
Is it possible? yes.

Would I buy something in instalment with 0% interest? possibly, but so far I found those to be more expensive than what I could buy cash elsewhere.

I am happy I did scrimp and save personally, I wouldn't have been able to afford my current mortgage if I hadn't, and wouldn't have a the lifestyle I now have. It was worth it. I am not going to feel embarrassed about it.

Shit happens in life, redundancy, illness. I sleep better knowing that we could still manage, which would be near impossible if we had debts.

It's also little things, no debts means I can book our Easter and summer holidays around Christmas. It would be impossible if we had £100s coming out every month to repay this, that and most of Christmas like some do. I am not smug, but I am not sorry either.

I've never scrimped and saved (although I do save and despite friends earning more than me I've got more savings bizarrely) and only ate beans, either. I've a perfectly fine standard of living thank you and I've never gone without. I don't do all inclusive holidays, but I can certainly afford to go away on a perfectly nice holiday abroad each year if I want.

Of course it is, and it's a VERY GOOD PLAN will save ££££££ over a life time and if you're paying debts it must make saving practically impossible.

I bought my first fridge, to go in my first (mortgaged) home on credit and when I really looked at what it cost me , I resolved never to do it again. And I haven't in 30 years.

If I can't pay for it I can't afford it. FWIW, until we saved, we furnished that house with deck chairs my parents lent us, the bed from my teenage bedroom and a second hand microwave

It's not sneering at people who borrrow, but the fact that I haven't borrowed is the single most important factor in the fact that I'm now able to pretty much spend as I wish. If others choose differently that's up to them but it will be much longer before they are in a secure comfortable position, if ever.

Not necessarily.

Debt can be a positive if it is for the right reasons.

I agree - but some of them also sound like they’ve had self-imposed, unnecessarily miserable lives!

This. I mean, each to their own but why would you survive with borrowed deck chairs as furniture when you don’t have to? I find it strange.
I think debt can be bad and good, depends on how you use it and how much!

Of course it is, and it's a VERY GOOD PLAN will save ££££££ over a life time and if you're paying debts it must make saving practically impossible.

Not necessarily. I have both debt and savings. The interest on my savings is higher than the interest on the debt so it makes sense to do that financially.

It's not sneering at people who borrrow, but the fact that I haven't borrowed is the single most important factor in the fact that I'm now able to pretty much spend as I wish.

Rubbish. You would be in the same position or perhaps better off if you had borrowed sensibly.

Sometimes you can be happy with borrowed deck chairs for those few minutes of sitting while you are in the throes of a renovation. And knowing that you are doing the hard work now but will get the results soon.

The reno gets done a lot cheaper doing as much as possible yourselves. You don’t waste time sitting as the chairs are fine but not overly comfy, so you do another short job every evening and the list gets done weeks faster.

And you have plans that involve spending money saved in the Reno on the exact perfect sofa and chair that will match the work you’ve done and your personal style, and that you will enjoy many happy evenings relaxing in once the job is done.

On the other hand, there are people who get the contractors to do everything, move into rented accommodation while the Reno is done, feel miserable being in a “not what we wanted” house and waiting for the reno to be finished, and possibly end up with a sofa that doesn’t match or work as well because you haven’t had time to get close to the project and don’t have as much spare cash (or credit) available at the end (contractors higher costs, extra rent, etc).

In the first instance, there is delayed gratification at play, but not indefinite. And while doing parts of a renovation yourself can be hard work, it is also very rewarding.

the fact that I haven't borrowed is the single most important factor in the fact that I'm now able to pretty much spend as I wish. If others choose differently that's up to them but it will be much longer before they are in a secure comfortable position, if ever

This is complete bollocks. Why would you be in a worse position taking 0% finance and leaving your money invested? It’s what we do, it’s called being financially savvy.

Life is short and I hate seeing people go without as a life long choice because of fear of debt.

Friend has only ever rented and refuses to take out a mortgage as to her that is debt.

We went without for a year to get ourselves into a studio flat

But from that we have lived, we have eaten out a couple of times per week, we have been to the theatre or cinema when we have seen something we want to see.

We have put children through private school and bought and sold houses. We are moving this year and trading in our house in a very expensive area for a house in a nice but cheaper area and buying a holiday home for cash.

Friend is still paying rent.

No idea why you would pay council tax and water rates up front.

Surely it would make better financial sense, even if you had saved the amount to pay over the 10 months and put the money in a savings acvount

Why would you be in a worse position taking 0% finance and leaving your money invested?

Because you can usually buy cheaper if you pay outright. Someone has to pay for the finance and that's usually the shop/supplier. The 0% credit illusion also draws you to the shops offering it, so you are less likely to shop around to find other shops that sell something similar cheaper.

There is also the risk of either forgetting to pay it off, or being unable to pay it off on time, which is where the finance company make their money with late payment charges etc.

You may also buy something sooner if you don't save for it. Whilst, yes, you have use of it sooner too, but you also risk being stuck with an out of date/obsolete model, when you may have been able to get a better model if you'd saved first and delayed the purchase, especially with tech items such as phones, cars, computers, etc.

scrimping and saving and being frugal does NOT need to be miserable. It can be more about being sensible in your spending decisions.

So shopping around for the best value (overall price, after sales care, loyalty schemes available, best sales or discounts negotiable etc). Using coupons or special offers on items you would buy anyway and loyalty schemes in shops you normally shop in anyway.

Making sure you cook proper portion sizes and don’t waste food unnecessarily- and know how to make use of leftovers rather than throwing them out. Knowing how to cook cheaper food to still make really tasty meals. Knowing how to cook and bake from basic ingredients rather than needing to buy ready meals and convenience food.

Keeping an eye on your bills so that you have the best tariffs for energy, water, phones and the best rates for insurances etc. Don’t pay for unnecessary insurance, but so make sure that you cover what’s important to you and your family (do you really need an extra 1 year warranty on a fridge when you already get 3? But does your family have serious illness cover for any wage earners?).

Make use of what’s available locally. Public transport. Local libraries and other amenities. Local parks for meeting friends and letting DCs play while you have a picnic in good weather rather than always soft play.

If you have a car, being sensible. Try to plan routes to get all the jobs done as economically as possible, not weaving back and forth across the locality. If you’re going 1 place for a specific reason, is there anything else useful to do there or in that direction while you are there.

Spend money on good quality items and repair them - not cheaper things that will fade/break/wear out quicker and need to be replaced rather than repaired. In the long run, the “more expensive” items can work out cheaper.

We have a good lifestyle, and now earn good salaries, but were enjoying our lives long before our salaries improved. And I am quite happy to keep some of my frugal ways because i can save more for the future and also because some of our favourite meals are actually very cheap - they just happen to be very tasty as well. I enjoy growing some vegetables in the garden - but I know I can’t dedicate the time to an allotment at the moment (I did save loads on veg when I did have one though!). Lots of the wine in Lidl is really nice but almost half the price of other supermarkets (main ones anyway - I haven’t really explored Aldi for wine), and it still gets you drunk if you drink enough of it!!