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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:
dayslikethese1 · 19/02/2021 13:46

I think it's important to consider what the debt is for. I mean, if the debt is for a roof over your head (mortgage) or to gain better employment (for study etc.) then it could be worthwhile in the longterm to take on. I remember having a conversation with someone I worked with who told me he wasn't letting his kids go to uni because they'd be in debt. I explained how the student loan system worked and he honestly hadn't known. So I think it's a shame if someone's fear or debt stops them studying if they really want to.

ChocOrange1 · 19/02/2021 13:48

I have a joint mortgage with my husband. There is about £170k left to pay off.

I have a student loan but I am not currently paying it back, nor do I expect to be any time soon so it doesnt really count.

dayslikethese1 · 19/02/2021 13:48

I don't think the media has helped in that regard either regarding student loans; the way it is reported is misleading and scares people. But that's an aside.

WhitechapelFatberg · 19/02/2021 13:52

I don't count my mortgage as debt. I need to pay to live somewhere, and I would not be able to rent a property locally for the cost of my mortgage.

Bluemoon94 · 19/02/2021 16:00

Quick question

Does anyone know how Hermes delivery driver works ?
Like how much money you make per parcel etc

BarbaraofSeville · 19/02/2021 16:04

Not enough to get a big mortgage to pay off or to live a debt free life.

Chewingle · 19/02/2021 17:14

@dayslikethese1

I think it's important to consider what the debt is for. I mean, if the debt is for a roof over your head (mortgage) or to gain better employment (for study etc.) then it could be worthwhile in the longterm to take on. I remember having a conversation with someone I worked with who told me he wasn't letting his kids go to uni because they'd be in debt. I explained how the student loan system worked and he honestly hadn't known. So I think it's a shame if someone's fear or debt stops them studying if they really want to.
“Letting his kids go to uni”?

Not his choice.
He couldn’t have stopped them!

Earthling1994 · 19/02/2021 17:21

None, I privately rent (would love to have a mortgage but saving is hard!). No loans, nothing on my credit card, no store credit etc.
26 year old single mum who works her little socks off :)

Flyingskunk · 19/02/2021 17:21

Mortgage of £160k on house of £515k no other debt. But moving shortly and will have mortgage of £315k on £700k house. It’s a big mortgage but due to the equity we have and that we’ll downsize when the kids are grown up I’m ok with it

Jane1727 · 19/02/2021 17:22

About 317 on mortgage. 2 loans about 24k credit cards about 23k. Gives me sleepless nights!

YukoandHiro · 19/02/2021 17:23

None. Own house outright but we need to somewhere bigger due to new baby so will probably have to take on a mortgage this year or next. Might have £100 outstanding on my credit card, will need to check.
Not much savings and not much pension though.

saffy2 · 19/02/2021 17:24

We have a mortgage of £160 thousand. No credit card debt, no overdraft debt, no loans. I have a student loan which will never be repaid, due to the circumstances of repayment and my current, past and future earnings, it doesn’t affect my credit score. And I currently owe tax credits about £1000 due to overpayment, which i am repaying in instalments and will be repaid by the end of this year.

HandlebarLadyTash · 19/02/2021 17:24

£0 as of 2021 brand new to the mortgage free club
Not much in pensions / savings

Chichiboo · 19/02/2021 17:31

zero. we own our house and i don't have credit cards or store cards etc. never took out a loan in my life. i'm a sole trader and my business doesn't even owe any money.....yet.

my dh has a credit card but he pays that off as soon as he gets paid every month and he doesn't have any loans etc either. i think the only thing he was paying on hp was our sofa but he finished paying that off a year ago and we only did it because it was interest free.

thelongwayhome · 19/02/2021 17:35

I have some student debt, in final year currently. But nothing else, not in my overdraft, no other loans or credit cards, but I rent so no mortgage.

OhFFSMum · 19/02/2021 17:42

Can I ask - what is the idea behind using your credit card every month for spending and then just paying it off in full? Why do people do this over just using a debit card?

(Yes I'm shit with money)

FancySomeChips · 19/02/2021 17:42

£6000
£2000 each on a store card, my over draft and a catalogue.
£200 on a loan which I pay off next month- wooooo!

No mortgage.

But I will use the loan repayment money I’m not using each month to pay off my catalogue from April as that has the highest interest rate. And once that is paid off I’ll have £400 a month to pay off the store card... and eventually £600 a month to pay off the overdraft.

Bakingcupcake · 19/02/2021 17:46

No mortgage..own house outright,have credit cards that are cleared every month we use them to get perks i.e. on Amex card. Have savings, if we do ever borrow money which we have in the past for example on cars we only do it if they offer 0% interest so not paying more than item worth if not we buy outright

TrixieMixie · 19/02/2021 17:47

Exactly this. Other than retired people I know no one with their mortgage paid off. MN is not a typical representation.

We paid off two mortgages on a flat in London and a house in the country long before retirement. (still not there yet). But we live very modestly and earn well. For years we prioritised paying off mortgages and went without holidays, didn't do up the properties etc. No other debt. I'm now prioritising other savings, and have around £200k - DH has about £250K. We both came from poor backgrounds and most people we know through work are much better off than us financially!

OverSha · 19/02/2021 17:47

@OhFFSMum

Can I ask - what is the idea behind using your credit card every month for spending and then just paying it off in full? Why do people do this over just using a debit card?

(Yes I'm shit with money)

i only have a debit card so I am not sure I am the correct person to ask, but i do know that because I had no credit history it was a bugger and a shit getting a mortgage. I had to coat tail on DH. I was pretty cross that the fact i had never borrowed any money it meant i was a borrowing risk. very odd.

So to answer the question, if you have a credit card and pay it off it gives you a good credit history.

Mesoavocado · 19/02/2021 17:56

None

Owed house outright and car

Not yet 40 but would give it all back for my dad to be alive still

Mesoavocado · 19/02/2021 17:58

@OhFFSMum

Can I ask - what is the idea behind using your credit card every month for spending and then just paying it off in full? Why do people do this over just using a debit card?

(Yes I'm shit with money)

I get cash back using my credit card so exclusively use it
scubadub · 19/02/2021 17:58

Can I ask - what is the idea behind using your credit card every month for spending and then just paying it off in full? Why do people do this over just using a debit card?
It's build up a good credit rating. Though if you live in the rep of Ireland it doesn't apply. There's no need to do that here, there's no such thing as a good credit rating here. Only a bad one as such. As long as you don't have a bad rating then you are not a risk. Also credit cards here in Ireland don't offer any more protection than a debit card.

Galena · 19/02/2021 17:59

@OhFFSMum

Can I ask - what is the idea behind using your credit card every month for spending and then just paying it off in full? Why do people do this over just using a debit card?

(Yes I'm shit with money)

We do this because we earn points with our credit card which we then use to pay for memberships.
Ilovewolfblass · 19/02/2021 18:02

0 student loan
£70k my share of mortgage (house is worth £1million, £600k of which is mine)
I pay £583 on a car contract
£1000 in btl mortgages but rents bring in over £3000