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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

How much debt are you in?

221 replies

Bottomlesspit21 · 24/03/2021 11:20

Following on from the savings thread, how much debt are you in?

Not including mortgage but including student loans, car finance etc.

I’m not in any debt but haven’t got much in savings either!

OP posts:
plumpuddisnice · 24/03/2021 18:27

@Moomoolandmoomooland

I love these threads because people with enormous mortgages look down their noses at someone who rents and owes £500 on a catalogue.

You keep on believing you'll pay off your £800k mortgage in your lifetime on your SAHM salary.

😂😂😂👏🏼
notdaddycool · 24/03/2021 18:28

Paid off childcare debt, have a mortgage, about to take on a small amount to cash flow some home improvements landing at the same time as some bills.

CorianderBee · 24/03/2021 22:47

£65,000 of student debt. Nothing else. Tuition fees really fucked me tbh.

VeniVidiWeeWee · 24/03/2021 23:24

@CorianderBee

There's no such thing as student debt. It's a tax if you earn over a certain amount.

LaBellina · 24/03/2021 23:27

None except what remains of my student loan which is still a few thousand and will be fully paid off within now and 3 years.

Cherryblossom7 · 24/03/2021 23:33

I have some debt but as others have said it's maybe a bit odd to ask if you don't have any?

zzzebra · 25/03/2021 12:41

[quote VeniVidiWeeWee]@CorianderBee

There's no such thing as student debt. It's a tax if you earn over a certain amount.[/quote]
It always feels so dismissive when people say this. It's a HUGE extra tax and it's ultimately is to pay off a loan that is designed to not be possible to ever pay off.

The minimum amount of debt you come out of uni with in England is £40k. That is for staying at home and for the minimum amount of student finance.

The interest for some new graduates is 5.6%, that's a minimum of £185 a month in interest!

I'm lucky that I'm on the old plan so my interest and loan amount are lower. But still I literally cannot pay my loan down, the interest is almost equal to what I pay. It does affect my monthly outgoings, £200 each going to pay this loan off is a huge thing.

JokeTheCoalman · 25/03/2021 13:23

About 15g worth on provi loans, payday loans a few credit cards etc. I like spending so any money I get I spend it. I don't always pay the debt back mind. It's a risk they take when they lend to Joke.

Vixivixen · 25/03/2021 13:42

@zzzebra I couldn’t agree more!

As well as everything you’ve said, let’s be honest - it’s a tax levied only on those who come from less well off backgrounds, or at the very least it disproportionately affects them. It is all the small things added together, that are designed to penalise those with less money and benefit those with more, that further widen the divide. Add to that the other points I raised earlier - low/stagnating wages, unaffordable houses, lack of job security - and it feels pretty dire for younger generations.

It’s all very well to talk about going without, saving and making sacrifices but that simply isn’t enough to ensure financial security. If that’s all you need to do to be comfortable then you’re already in a position of relative privilege.

willithappen · 25/03/2021 16:18

@zzzebra that is some intense loan returns!
I have student loans, but based in Scotland. That plus my income being lower means I'm paying £17 a month back so I don't really notice it

zzzebra · 25/03/2021 16:55

[quote willithappen]@zzzebra that is some intense loan returns!
I have student loans, but based in Scotland. That plus my income being lower means I'm paying £17 a month back so I don't really notice it[/quote]
I don't believe the loan changes were made in Scotland or Wales. So the fees and interest rates are much lower.

A lot of my friends who stayed away from home and come from low income family's have £65k+ debt so can end up with £3500+ interest a year. It's completely insane.

PattyPan · 25/03/2021 21:15

The postgraduate loans take it to a whole new level. It’s 9% of my income on my plan 2 loan (which is less than the interest) and 6% of my income on my postgrad loan, so 15% in total. Almost as much as the 20% income tax! Doing a masters was a huge mistake financially but at least that one will be paid off eventually.

littleloopylou · 25/03/2021 22:06

I did post grad in the US. My loan payments were over 1000 USD per month if I recall correctly.

littleloopylou · 25/03/2021 22:07

Actually, I think it was more. Maybe like 1800/month.

1Morewineplease · 25/03/2021 22:11

£0

PattyPan · 25/03/2021 22:26

@littleloopylou that’s mental! Was it worth it?

Jeeperscreeper · 25/03/2021 22:35

None exept 20 k mortgage

shivawn · 25/03/2021 22:53

No debt other than 120k on the mortgage, will be upping that to 300k once we upsize! Had a 10k wedding loan a couple years ago but paid it off ASAP because I hated having it!

Don't know why people are so triggered by you asking OP, its a discussion forum after all and no one has to answer if they don't want to!

MiddleClassMother · 25/03/2021 22:59

None. I hate debt. We recently paid out mortgage off and that's the only debt I have ever had. I use credit cards but pay them off as soon as the statement card comes in, I do this for the protection and travel rewards rather than needing to borrow money.

BoomTastic1 · 25/03/2021 23:02

Just finishing paying off 5k on credit cards and my overdraft is almost paid off so as of tomorrow none apart from mortgage. Long time coming.

fourpotatoes · 25/03/2021 23:10

About £20k in student loans, but they're very old loans and being deferred every year, I don't make any repayments.

Used to have £25k of unsecured debt due to legal costs but went bankrupt 8 years ago and now it's wiped off my credit file.

DH owns our home outright, no mortgage.

CorianderBee · 25/03/2021 23:36

[quote VeniVidiWeeWee]@CorianderBee

There's no such thing as student debt. It's a tax if you earn over a certain amount.[/quote]
Don't be pedantic, you know what I mean. Anyway my loan has gone up more in interest than the few thousand I've paid off since I graduated. So really it's just a forger tax until I'm at whatever age they dismiss it (unless they retrospectively change the terms... again)

CorianderBee · 25/03/2021 23:39

And yes mine is undergrad and post grad and adds up to 15% of my wage monthly on student loans. Add in tax and pension and I take home 60% of my wage. Leaves me annually with £16,800 for a 45 hour per week, well regarded professional job.

CorianderBee · 25/03/2021 23:43

Oh wait think I calculated the loan repayment wrong bc it's over the threshold... still you get my point

quollaa · 26/03/2021 00:08

I think the post it fine I find it weirder that people with no debt comment that really. If @FluffyHippo partner had a real life thread of the amount of people in debt it could have helped. Money destroys people and happily saying your in such a great position could destroy someone. Everyone could lose everything in a second and become poor nothing is guaranteed. And I would give every penny I had to keep my husband and kids alive, I hate that decent people end their lives because of money situations. Their needs to be more help, support and understanding so they don't feel overwhelmed.