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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:
OnlyFoolsnMothers · 10/01/2020 12:07

People prioritise different things in life. But I do think people need to own their choices I agree to a certain extent but I don't think it's unreasonable to want to stay near your support network- the financial and mental impact of losing that can be too much for most people.
I just think people are overly critical of Londoners compared to people from other expensive regions.

hiddenmnetter · 10/01/2020 12:07

It depends what you're trying to achieve doesn't it? If debt is overdone is a problem, but essentially debt is a way of changing fixed costs into monthly costs. But a car for 10k? Buy the same car for £200/month over X years. With 0% finance you're paying the same cost.

Like car insurance- I could pay £100/month, or £1,160/year. So it costs me an extra £40/year (or around £1.60/month) to not pay upfront lump sums.

Provided it's kept within manageable limits it's simply a way of moving to a monthly payment system which I don't necessarily object to.

TabbyMumz · 10/01/2020 12:07

"You're naive if you really think it's possible to live without any debt."
Lived without debt all my life.

Damntheman · 10/01/2020 12:07

I have a student loan and a mortgage. Other than that I consider myself insanely lucky to have been able to build up a good savings buffer and have enough spare to save for other big expenses like buying the car outright. Not everybody is that fortunate though, so yes I do agree that debt is a given for a lot of people. Not everyone in financial trouble is there because they've been an idiot.

BlaueLagune · 10/01/2020 12:07

I have always tried to live debt-free other than my mortgage. Other than my mortgage I have only ever had two loans (other than a small student loan when a student in the days when loans were very small) - one was to help my mum buy her house when she spit up from my father than the other was when I started my first job after university as you get paid in arrears, so I needed money for the first month.

I save and buy cars outright and other than that if I can't afford it I can't have it. I very occasionally buy something on a credit card eg pay for a hotel bill but I pay it off immediately.

I've been lucky that although I have lost jobs over the years I've had pay-offs and/or got another job easily so I've never been really strapped for cash.

If your washing machine breaks down and you can't afford another one, of course you will need a loan or to put it on a credit card.

Interestingly my credit card has a much smaller credit limit on it now because I never use it. I think the bank have reduced it from £5K to £1500 which doesn't make it much use for more expensive holidays.

adaline · 10/01/2020 12:08

Everyone saying 'of course it's easy, I do it' you really don't know how lucky you are

It's not all down to luck. People make different choices and sacrifices in life. Not everyone has the same priorities.

OnlyFoolsnMothers · 10/01/2020 12:08

kids are a luxury. There are many of us would would have loved a bigger family, but can't afford one. It's a choice it's true, kids should only be for the rich- if you have to finance a car your tubes should be tied Hmm

TroysMammy · 10/01/2020 12:08

I do and no mortgage either. I had a redundancy pay out 12 years ago and didn't spend it as my endowment mortgage at the time was due to fall short. When my mortgage was due to be paid off it was only short by about £400 and the money stayed there. I now save the mortgage payment each month as I don't miss it and don't need it. I only work 25 hours a week for minimum wage. I live within my means.

BlaueLagune · 10/01/2020 12:09

I pay one car and home insurance over the year - so I suppose that is debt. The other car only costs £200 to insure though, so I paid that in one go.

Schuyler · 10/01/2020 12:09

Children are a luxury on some level but equally, you can’t shove them back into your uterus should you find yourself victim of unfortunate and unexpected financial circumstances.

JosefKeller · 10/01/2020 12:09

it's true, kids should only be for the rich- if you have to finance a car your tubes should be tied

these comments are stupid, so you think it's ok to have kids when you can't afford to give them a decent life? How selfish do you have to be. They are not a right, it's not about being "rich", it's about being able to afford them. And make sacrifice for them, which is lost on many.

adaline · 10/01/2020 12:10

it's true, kids should only be for the rich- if you have to finance a car your tubes should be tied

Where has anyone said that?

Children are expensive. Lots of people stop at one or two because they can't afford anymore without getting into financial difficulty. Personally I think that's a pretty sensible decision to make.

I see lots of threads on here where people have found themselves pregnant and have no idea how they're going to afford it.

JosefKeller · 10/01/2020 12:10

f your washing machine breaks down and you can't afford another one, of course you will need a loan or to put it on a credit card.
why? You can manage without one for a while, you don't need to go in debts.

It's harder without a fridge, I give you that, but a washing machine?

OnlyFoolsnMothers · 10/01/2020 12:11

All these issues arent even about people's choices- few of us take 3 holidays a year, drive a Porsche and eat out 3 nights a week- yet many of us are in debt.

The issue is the state of wages in this country.

It's awful to think any full time working adult in the UK cannot afford the basics- and yes I include a washing machine, the internet and transportation as basics as we dont live in the 3rd world!

MarshaBradyo · 10/01/2020 12:11

It is possible. I’m sure I heard on R4 that personal debt was up in the U.K.

TabbyMumz · 10/01/2020 12:11

Dont have outgoings I cant afford

What, like a roof over your head, heating and food?

Yes. I can afford what I have. If I couldnt afford them, I wouldnt have them. Have a house you can afford, and know you will have enough on top to cover emergencies and luxuries.

OnlyFoolsnMothers · 10/01/2020 12:11

Children are expensive. Lots of people stop at one or two because they can't afford anymore without getting into financial difficulty. Personally I think that's a pretty sensible decision to make

People with 1/2 kids are in financial difficulty!!!

1300cakes · 10/01/2020 12:12

I know what you mean OP. I'm not in debt as luckily I don't need to be. But I don't think debt is bad, or judge people in it - sometimes it's the best choice or unavoidable.

But I know a few people who are in massive debt even though they earn the same as me, who have had no unlucky financial circumstances, (eg, car written off, medical bills). They have spent years spending up big on credit cards, frittering away money on the most ridiculous things (eg, the most expensive wines, regular shopping sprees in designer stores) and justify it by saying "well everyone's in debt these days, it's a part of life, I can't help it". For them, it's just an excuse to go shopping.

MarshaBradyo · 10/01/2020 12:12

I’ll amend that possible for some not everyone

TabbyMumz · 10/01/2020 12:12

"Your washing machine breaks down and you can't afford another one, of course you will need a loan or to put it on a credit card."
Nope. Would have savings for emergencies. Or if not, wash clothes by hand.

adaline · 10/01/2020 12:13

I agree to a certain extent but I don't think it's unreasonable to want to stay near your support network - the financial and mental impact of losing that can be too much for most people.

Of course it's not unreasonable but you also have to accept that by making that decision, you're potentially negatively impacting your life in other ways.

I just think more people need to take ownership of the choices they make in life. Admit that the reason you can't afford to buy a house/go on holiday/save for retirement is because you chose to remain in an expensive area to be near your family. For some people, that's worth the trade-off. For others, it's not.

Of course that doesn't apply to everyone but lots of people choose to live/buy/rent in expensive areas when they could make other choices and have more disposable income to save.

JacquesHammer · 10/01/2020 12:13

I'm not in debt as luckily I don't need to be

I think this is the wisest post on the thread.

WireBrushAndDettolMaam · 10/01/2020 12:14

What a silly thread. Of course it’s possible for some people to live debt free. Some people are born wealthy and never need to worry about covering bills. Others will need to take on debt just to eat. You can’t surely be so ignorant of the lives of others as to assume everyone starts on a level playing field?

slashlover · 10/01/2020 12:15

Have a house you can afford, and know you will have enough on top to cover emergencies and luxuries.

If only it was that simple.

SunshineAngel · 10/01/2020 12:15

It is very possible, but the problem is that people want things NOW, they won't wait, nor will they buy things within their budget .. they just have to buy things brand new, or expensive.

It's like so many people stretch themselves for car finance when you can get a perfectly good second hand car to buy outright.

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