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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:
Neron · 10/01/2020 12:15

@WreckTangled @schuyler but it didn't come to that for me because I done what I could to prepare against it. No I didn't have children as even if I wanted to I couldn't afford to have them. I understand completely how people get in to debt, my DH had enormous debt when I met him and who knows what the future holds. So far I've done what I can to make sure my life does not resemble where I came from and that's included living with no debt

adaline · 10/01/2020 12:15

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

Sure, and lots of people decide against having children because they can't afford to raise them. Or stop at one because more than one child is too expensive. It's also the reason lots of people have big age gaps - so they're only paying out one lot of nursery fees at a time.

Again, multiple children (aside from twin/triplet pregnancies) is a choice people make.

Nighttimefreedom · 10/01/2020 12:15

JosefKeller if you're on a low income it could take you a year to pay that off.
It's a reasonable thing to put on a credit card. I grant you you could do without but it would be hours of handwashing, no spin dry, or going to a launderette.
To me that's a sensible debt.

Elbeagle · 10/01/2020 12:16

TabbyMumz I seriously don’t believe you lack the intelligence and awareness to understand that some people are down to the very very basics, and still don’t have money left over?
Thankfully, I am not and have never been in that situation. But I know that other people are.

RuthW · 10/01/2020 12:16

I have a mortgage. Apart from that I have never been in debt and I'm 51.

TabbyMumz · 10/01/2020 12:16

"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."

It is. People often buy houses they cant afford.

Ariela · 10/01/2020 12:17

debt is so cheap these days to pay back, its almost worth buying a sofa , a car or a holiday on credit and paying it back- its much harder to save thousands of pounds at a time for these items.

This is precisely how people get into debt they cannot pay back. They see a sofa they like to replace their current one. Or they book their summer holiday at a location they've not got the funds in the bank for. They buy on credit, thinking that's fine I can pay out of the next few months salary THEN they get made redundant/the boiler/car blows up - and then the debt cannot be paid back in the time frame needed to retain 0%. (BTW it's fine to buy on interest free credit if you have the same sum sat in the bank earning 1% interest).

That interest free sum will be charged at some ridiculous APR of 24% on the whole amount if you miss an interest free payment. That is how your debt builds up.

Maybe I'm old fashioned but in the old days you saved a little and spent a little and you used your savings to buy the sofa/holiday/car. If you've no money for a new sofa I see plenty on Facebook being offered cheap or free, ok not the best looking but you could shove a cheap fleece throw over it to tide you over till you had saved enough. My current 3 piece is new but the last one lasted 20 years and cost £ 250 - in that time my friend was on her fourth one at over £ 1k each.

What annoys me now is that companies make so much money on selling you a holiday/car/sofa etc on credit from the credit firms they do not want your cash and you can no longer negotiate a nice 'discount for cash'

adaline · 10/01/2020 12:17

Some people are born wealthy and never need to worry about covering bills. Others will need to take on debt just to eat.

Most people don't live on opposite ends of a broad spectrum, though. Most people are muddling along somewhere in the middle and make various choices in their lives that impact their financial security.

WireBrushAndDettolMaam · 10/01/2020 12:17

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.

Oh is it really just as simple as knowing you have enough to cover emergencies and luxuries? I didn’t realise knowing something made it happen. I’m now imagining myself receiving £1bn in a cheque by post tomorrow morning.

TabbyMumz · 10/01/2020 12:18

TabbyMumzI seriously don’t believe you lack the intelligence and awareness to understand that some people are down to the very very basics, and still don’t have money left over?
Thankfully, I am not and have never been in that situation. But I know that other people are.

Of course they are. I'm not. A lot of it is down to life choices. If I couldnt afford anything, I wouldn't have it. I cant talk for anyone else.

WireBrushAndDettolMaam · 10/01/2020 12:18

Most people don't live on opposite ends of a broad spectrum, though. Most people are muddling along somewhere in the middle and make various choices in their lives that impact their financial security.

So because there are some in the middle we are ignoring those on the ends?

adaline · 10/01/2020 12:19

debt is so cheap these days to pay back, its almost worth buying a sofa , a car or a holiday on credit and paying it back- its much harder to save thousands of pounds at a time for these items.

That's the problem. People want things NOW and can't be bothered to wait and save up for them. I'm currently sitting on a sofa that's third hand, old and battered because we couldn't afford a new one until this month.

People think it's perfectly okay to just take out credit for every little thing because it has no immediate impact on their finance. And before they know it, things have spiralled and the debt is out of control.

OnlyFoolsnMothers · 10/01/2020 12:20

in the old days you saved a little and spent a little in the old days things didnt cost as much.

adaline · 10/01/2020 12:20

So because there are some in the middle we are ignoring those on the ends?

No, but it doesn't make sense to argue about the few when we're talking about the majority in the middle. Of course some people struggle, just as some people are born into a life of luxury. But most people are somewhere in the middle and are making choices that aren't necessarily positive.

WireBrushAndDettolMaam · 10/01/2020 12:21

It is. People often buy houses they cant afford.

And people are renting houses/flats/rooms they can’t afford but have literally nowhere else to live. Well- there are the streets I suppose.

TabbyMumz · 10/01/2020 12:21

"Oh is it really just as simple asknowingyou have enough to cover emergencies and luxuries? I didn’t realise knowing something made it happen. I’m now imagining myself receiving £1bn in a cheque by post tomorrow morning."
Of course not. This is part of the problem these says, people want things, so go and get them, even if they cant afford it. I chose a career, worked hard, and spent what I could afford. Saved hard. Worked for me. Never ever had a debt in my life.

usernotfound0000 · 10/01/2020 12:21

It all depends on circumstance. We are debt free aside from a mortgage. I was "lucky" in that DM died so I received a small amount of inheritance, it allowed us to buy a reliable car outright and have a small amount of rainy day savings. Friends with good jobs and higher incomes than we have, have large debts and it is just through their lifestyle choice, we rarely eat takeaway, food shopping is meal planned and budgeted, don't have expensive phone contracts etc. Having said that, I'd take having my mum over some debt any day.

OnlyFoolsnMothers · 10/01/2020 12:21

Again, multiple children (aside from twin/triplet pregnancies) is a choice people make surely then you think having 1 child in a choice, not just multiple?

Trewser · 10/01/2020 12:22

I have no debt apart from a small mortgage.

WireBrushAndDettolMaam · 10/01/2020 12:22

No, but it doesn't make sense to argue about the few when we're talking about the majority in the middle

Op says it’s possible to live rent free. I’m pointing out that there are circumstances where it isn’t possible. It wouldn’t make sense in this discussion to ignore the end of the spectrum that shows it isn’t actually always possible.

Elbeagle · 10/01/2020 12:23

People often buy houses they cant afford

And a lot of people can’t afford to buy a house at all, and their money goes on renting a shitty damp bedsit. Or a house-share with 6 other people.

WireBrushAndDettolMaam · 10/01/2020 12:23

*debt free

adaline · 10/01/2020 12:23

surely then you think having 1 child in a choice, not just multiple?

Where did I say otherwise? Confused

WireBrushAndDettolMaam · 10/01/2020 12:25

Of course not. This is part of the problem these says, people want things, so go and get them, even if they cant afford it. I chose a career, worked hard, and spent what I could afford. Saved hard. Worked for me. Never ever had a debt in my life.

You’re not actually answering my question here you know. How does “knowing you have enough” magically make money appear when you’ve just been made redundant and your oven has broken? I don’t understand how that works.

slashlover · 10/01/2020 12:26

It is. People often buy houses they cant afford.

If people can afford to save for a deposit in the first place then that's not the people I am talking about.