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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:
Youngatheart00 · 21/02/2021 12:26

@therealteamdebbie I’m talking about people using ‘debt’ as a loaded, negative statement.

If the asset you own is worth far in excess of the mortgage outstanding, the net debt is nil. Hence why I don’t consider it debt.

MrsABC123 · 21/02/2021 12:30

How the hell has everyone paid off their mortgages? Ours is massive and we're planning on moving in the next few years and getting a bigger one...

needadvice54321 · 21/02/2021 12:38

@MrsABC123

How the hell has everyone paid off their mortgages? Ours is massive and we're planning on moving in the next few years and getting a bigger one...
Ours will be soon, but only because sadly DH has lost both of his parents fairly young so inheritance has helped Sad
notacooldad · 21/02/2021 13:16

How the hell has everyone paid off their mortgages?
Overpaid as much as I could Even if it was only by 50 quid. There was no penalty for over paying.
Lock down was a massive help fo us having a lot of spare money.
I did get a bit obsessed and if DH suggested a takeaway for example, I'd refuse, make something at home and pay 40 off the mortgage with the money we "saved" by not spending!!😂😂
Everyone is thankful it is now paid off and we can have treats again!!

notacooldad · 21/02/2021 13:18

If the asset you own is worth far in excess of the mortgage outstanding, the net debt is nil. Hence why I don’t consider it debt
I considered a debt because it was something I had to pay monthly fir no matter what. If it wasn't paid for I risked losing it.
It was a huge part of my budget.

Youngatheart00 · 21/02/2021 13:20

But that’s the same as rent - you have to pay it every month or you lose where you live.

buddy79 · 21/02/2021 13:26

Surely only people who are not in much debt will feel comfortable to share / I think this is a massively unrepresentative thread!
Mortgage £240k between me and dp and my student loan but that’s it. We have been very very fortunate and been in right place right time for property purchase.

PattyPan · 21/02/2021 13:32

@MrsABC123 we haven’t paid it off yet (only took it out in 2019 and haven’t won the lottery!) but have decreased the term by a few months already by overpaying whatever we can each month and keeping the monthly repayment as is.

MRex · 21/02/2021 13:35

@MrsABC123

How the hell has everyone paid off their mortgages? Ours is massive and we're planning on moving in the next few years and getting a bigger one...
It's often the choices that you make. I was lucky enough to earn a decent amount, but worked very long hours (self employed) to earn a lot more. I used to work with colleagues who talk about their mortgages, but they would take expensive holidays instead of cheap ones, new cars and clothes all the time, basically frittering away loads of money on nothing. I earned much more than I spent and overpaid in lump sums a couple of times per year, every year. When we moved, we could have bought a much more expensive house with a big mortgage, but we decided to go for no mortgage because we planned to have DS and very low outgoings is a massive advantage in looking at how much parental leave we could afford. We might move again and take out a mortgage in a few years to pay for a better or larger house, but this lifestyle suits us for now where we can each spend much more time with DS.
notacooldad · 21/02/2021 13:39

But that’s the same as rent - you have to pay it every month or you lose where you live
I agree, but I've never rented soever thought if it that way.
I'm happy with the security I have at the moment and knowing the £100's I was paying out every month is now mine to be free to do what I want.

changi · 21/02/2021 13:41

How the hell has everyone paid off their mortgages? Ours is massive and we're planning on moving in the next few years and getting a bigger one...

By not having a massive one to start with and not getting a bigger one.

We never overpaid a penny when we had one, although the mortgage was over a relatively short term and my husband had had it a few years before we married.

PurpleFlower1983 · 21/02/2021 17:35

@MrsABC123

How the hell has everyone paid off their mortgages? Ours is massive and we're planning on moving in the next few years and getting a bigger one...
I paid £100k for my 4 bed Victorian end terrace - it needed a lot of work doing and we live in a Northern town where prices are cheap! That was 9 years ago, I still owe £50k but obviously that’s not much in comparison to others.
MrsABC123 · 21/02/2021 18:10

Thanks for everyone's replies but I think the choice is somewhat limited if you live in an expensive city. We live in a relatively affordable part of London but still have a £350k mortgage (with, of course, more equity)- that's just life. I suppose we could have found somewhere £100k cheaper but we'd still have a £250k mortgage.

I don't personally think being mortgage free in your 30s or 40s is necessarily a choice although I take the point that if we choose to upsize then we are choosing a larger debt.

BikeRunSki · 21/02/2021 18:23

How the hell has everyone paid off their mortgages?

We’re old (45/50)
We bought modestly
We live in W Yorks (not swanky N Leeds though!)
We didn’t get a bigger house after we had dc
We’ve overpaid regularly

NoMackerelInSwindon · 21/02/2021 18:26

The right level of debt is good. It might even be essential for sound finances.

optimistic40 · 21/02/2021 18:29

None. But I also rent.

DdraigGoch · 21/02/2021 18:43

Mortgage 104k, should clear it in 10 years
Student loan 34k, god knows if that'll clear or be written off
A few hundred on sofa finance etc.

For context, I'm mid-20s and live alone.

Tink2007 · 21/02/2021 18:50

Stupidity when I was younger buggered my credit rating so now having to claw my way back so we can try and get a mortgage. I hate my younger and stupid self.

User7538943 · 21/02/2021 18:51

None but we are early 60s so paid off our small mortgage and pay off cards each month

Hettyhopper · 21/02/2021 19:12

Student loan but I do not earn enough to repay Sad

About £100 (still interest free atm) as the remainder after our washing machine broke unexpectedly

I rent so no mortgage

I am immensely proud of myself for being in this position though, as my exH got us in so much debt (close to 80k including 12k just in my name) and I have finally paid mine off and put myself and my children back in to a financially secure position in this house Smile

Dowser · 22/02/2021 22:28

@Rangoon

None - own house outright. Pay off credit card in full every month.
Same here
WalfRiggum · 27/05/2021 10:06

Wife and I are 40 yo. Hopefully by Nov this year we will be completely debt free as we pay off our mortgage and car payment early. We've been working towards that goal for years. Until about 7 years ago we had no grasp on our money etc. For some reason that I'm still not aware of I got into budgeting, which led to getting into the hobby of money management etc. It was eye opening. I now view debt in any form (mortgage less of an issue actually) as a really bad thing. I can't wait to be debt free and our aim is to never ever owe another penny again.

Babbly · 27/05/2021 10:08

Mortgage - £180,000 (I guess half of that is DH too though)
Student loan - £106,680.34 (according to the current balance online)

WalfRiggum · 27/05/2021 10:11

There's your problem. Lifestyle creep. BE happy with what you have. Unless your existing home is awful or you really don't like it why move. We've been in our home for 12 years. It's a mid-terrace stone house with 3 beds and 1 bathroom. My friends have all "upgraded" to massive new houses with 3+ bathrooms and a HUGE mortgage to match. It's insane. Live within your means. Don't fall for the 'keeping up the joneses' rat race. The Joneses are broke and are racked in debt. You just don;t know it because of their huge houses and PCP funded luxury SUVs. Avoid the lifestyle creep!

Sushirolls · 27/05/2021 10:18

Just our mortgage, thankfully!

I do have a CC which gets paid off in full if used and an overdraft which I don't use, as it's for emergencies.

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