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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To ask how much debt you are in?

776 replies

Sunshine3013 · 18/02/2021 07:04

Just that really.
Wondering how much debt the average person is in.. Including mortgage, loans, credit cards, overdraft?

Just curious!

OP posts:
BarbaraofSeville · 18/02/2021 13:48

Credit cards have a number of advantages that have nothing to do with borrowing money or getting into debt. That's why most people have them - something like 60/70% are paid off in full every month.

@Fiona2020 34. Bought my house outright at 30. No student loan. My car is pcp costing £135 a month but about to exchange. And I have about £150 on my credit card smile

I was taught if you can’t afford something don’t buy it!

So if you hadn't been one of the tiny minority that can afford to buy a house without borrowing, would you still be renting or living with your parents? Don't you think it's a little disingenous to talk about buying a house outright at a young age and not buying things you can't afford within the same paragraph when it's so far from a realistic expectation for most people?

userxx · 18/02/2021 13:49

@Notimeforaname I don’t know one single person who hasn’t got a credit card - that should answer your question! Great for emergencies but a nightmare if you live off them.

amusedbush · 18/02/2021 13:53

Last year (aged 30) I paid off my debt repayment plan as I ran up £14k in credit cards, loans, overdraft and catalogue accounts when I was 21, which I'm not proud of. I now don't have a credit card or overdraft and I don't want one.

DH and I inherited our house so no mortgage. I have a £5.5k tuition loan for my MSc but I'm still a student so won't start paying it back until 2024. I have a £10k car on hire purchase.

SplendidSuns1000 · 18/02/2021 13:55

Just mortage- around 17k which will be paid off by June.
We don't use credit cards- only debit.

StarsonaString · 18/02/2021 13:55

@Notimeforaname credit cards are brilliant when used sensibly. Mine gives me 1% cashback on all purchases so I use it for as much of my spending as possible. High interest rate though so pay off in full every month to avoid it. When I have had short term cashflow challenges after moving, renovations etc. I have taken out 0% cards, lived on those for a short time then paid them off before the interest free period ends. Costs nothing and helps me out in various ways.

Fuckadoodledoooo · 18/02/2021 13:58

Personally nothing but I have nothing either!

My husband has a student loan and he consolidated credit debt with a 7k bank loan as it was cheaper. So just that.

Sceptre86 · 18/02/2021 14:00

My share of the mortgage so about 90k no other debt.

Wedlock · 18/02/2021 14:01

@Fiona2020

34. Bought my house outright at 30. No student loan. My car is pcp costing £135 a month but about to exchange. And I have about £150 on my credit card Smile

I was taught if you can’t afford something don’t buy it!

How much did your house cost and where did you get the lump sum to pay for it at the age of 30?

I agree with @BarbaraofSeville, it's easy for people to cheerily say 'I was taught if you can’t afford something don’t buy it!' when they have been on the receiving end of financial good luck that has meant they haven't ever had the need to avail of credit.

Bloodybridget · 18/02/2021 14:02

None; mortgage was paid off years ago and although I use a credit card it gets paid off each month.

Sixtyorforty · 18/02/2021 14:03

Just my mortgage which is approx £225,000 to go. Paid off my student loan last year and don’t use credit cards. DH doesn’t have a student loan - he has AMEX but pays it off each month.

Wedlock · 18/02/2021 14:04

although it could be the case that you saved up £60,000 by yourself over a decade and paid for a £60,000 house in an area of the country where house prices are low. ?Was that it?

HarrietOh · 18/02/2021 14:05

About 110k on mortgage (which will increase in future when me and DP own together!)
2.1k on 0% credit card (have it in savings to cover when needed)
3.8k car loan, overpaying currently.
Think my student loan is due to be paid off in 6 years. If you read MSE article it makes no sense to pay off early really!

Doris86 · 18/02/2021 14:08

Yes credit cards have their uses. I do all of my spending on mine, which earns me cash back and gives me extra protection should I have a problem with anything I buy. I then pay it back in full each month, and credit card company never makes a penny from me.

0% credit cards are also the cheapest way of borrowing if used sensibly and paid off before the 0% period ends. Once I got a 0% credit card and did all my spending on it for a few months. I saved the cash I would otherwise have been spending and spent it on a car. I then made monthly payments on the card and paid it off before the interest free period ended. A completely free car loan.

Credit cards are also great for building up your credit score before applying for a mortgage. If you’ve never had debt you’ll have a very poor credit score. However if you spend a few pounds on a credit card and then pay it off each month, you’ll build a much better credit score.

dottiedodah · 18/02/2021 14:10

No outstanding debts.Small mortgage left .Pension and Savings as well .

VestaTilley · 18/02/2021 14:13

None aside from student loan.

I’d love to have a mortgage.

Bingbangbingbangbong · 18/02/2021 14:15

359k on mortgage
20k on my student loan (DHs was paid off in Jan)
7k on the credit card, but this was a planned interest free card taken out specifically for some house renovation project work. This will be cleared well before the interest period ends.

polkadotpixie · 18/02/2021 14:16

£163K on the mortgage (joint with DH) and god knows how much student loan, I don't earn enough to pay it back so I dread to think

No loans or credit card debt though

Fuckadoodledoooo · 18/02/2021 14:21

@VestaTilley

None aside from student loan.

I’d love to have a mortgage.

Yes us too, but no chance of ever getting one, even though a mortgage on and identical house what we rent would be half the price of renting it Confused

Crazy, really.

Fuckadoodledoooo · 18/02/2021 14:21

*that we rent

MirandaWestsNewBFF · 18/02/2021 14:23

Mortgage of about 70k and a student loan, plus a boiler replacement that I’m paying off at £85 a month. I don’t do credit cards and try to stay in the black as much as possible.

iwishiwasatcentralperk · 18/02/2021 14:23

My only debt is my mortgage and around £2K on 0% interest on my car purchase. I don't believe in debt. I have credit cards but pay them off in full each month, and use them mainly to collect loyalty points.

I was brought up "if you can't afford it, you can't have it". I saved for years for a special holiday rather than go instantly and put it on credit.

Tyranttoddler · 18/02/2021 14:25

@Fiona2020

34. Bought my house outright at 30. No student loan. My car is pcp costing £135 a month but about to exchange. And I have about £150 on my credit card Smile

I was taught if you can’t afford something don’t buy it!

Gosh how did you manage to buy a house outright at 30?
WeAllHaveWings · 18/02/2021 14:28

Credit card aside which is used for convenience/protection and paid off each month then debt is £0.

Mortgage is paid off, car is (old) paid off, we use savings/save for anything we need now.

The only reason we are in the black with no debt is because we are old(er) 😁. I would much rather be young and up to eyeballs in debt again!!!

What is average debt is really dependent on what stage you are at in your life.

Notimeforaname · 18/02/2021 14:31

Thanks for the info re credit cards!! Very interesting. I'll go to bed less stupid tonight!!Grin

heatherpot · 18/02/2021 14:41

As others have said it's useless info unless we know the assets and age of the poster as well. I'm 44 and earn about £50k.I have 2 sec school aged dc and receive no CM for them from ex. I have £111000 and 18 years left on my mortgage, though 'm going to start over-paying next month. I had to pay ex out about 5 years ago so that added to it. I also have about £2.5k on 0% credit card. When the 0% deal ends later this year I'll pay it off with a recent inheritance. When I ex and I split I was left with about £5k of marital debt and I've cleared it but added and paid £2k off for home improvements (essential) and so it's been at around it's current level for last 3 years or so. Thanks to my inheritance (a lot more than the cc debt), it will finally be gone soon and I do feel lucky for that - not lucky that my very elderly and much-loved relative died, but fortunate and grateful that they chose to leave so much of their savings to me.

I'm determined not to use CCs again, unless it's on a 0% promotion to spread the cost of something major and have protection, and I'm sure I'll manage it. Last year I borrowed £3k to replace my kitchen - it was falling apart. I'd planned to borrow more for the fitter but refunded holidays 'thanks' to Covid meant I was able to pay that portion outright.

I also think people's relationship status has a bearing on this. I've read most of the thread and every comment I'm sure has been 'we' this that and the other! If I had a partner on similar or even quite a bit lower than me, I'd have no debt if we were pooling resources, but being the higher earner in a divorce and then remaining single is hard financially.

I also don't regret the stuff I've had and that I've not managed to be debt-free up to now. A kitchen falling apart is depressing and I've had some lovely holidays with the dc - not overly expensive and they weren't put on CCs but obviously if I'd not gone on them I'd have had more money available to pay off other stuff. But my kids will have left home/won't want to holiday with me within a decade so I certainly don't regret the good times we've had.

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