To ask how much, if any, credit people have?

[Allinadayswork80]

Not wanting to offend anyone, but having seen previous threads asking how much you you earn, etc. I hope this question wouldn’t be unreasonable to ask.

Curious to know how much credit/debt people have and what for? I was brought up with the attitude that if you can’t afford it, you don’t have it but I also have friends whose attitude is “life is too short and have what you want”. There’s lots of things I’d like, new clothes, upgraded furniture/white goods but we live within our means and generally only buy what we can afford or have saved for. Whereas we have friends with lovely newer cars, latest clothes, American fridge freezers with ice dispensers etc. all on credit. I personally would find this stressful. I’d love to know the general consensus on peoples’ attitudes towards credit and if I’m cutting off my nose to spite my face?

As I have the ability to be utterly irresponsible with money I am aiming for debt free - and almost there.

I have a ridiculous amount of credit available- probably around 45k in total. My DH probably has about 10k available.

Between us though, excluding mortgage, we have about 5k on 0% credit from a car purchase and some house repairs. This isn't true debt though as we have enough in savings to pay it off, so net debt is actually zero.

We have two cashback cards we use and pay off monthly (Amex and Visa).

We use 0% cards as if we don't have the money up front, we would rather get whatever house repairs needed done earlier for a small ~3% fee and pay it off over the 0% periods rather than waiting for 1-2 years to save to get the work done. We view the small fee as a convenience fee for getting work done earlier.

For example, we had to get the side of the house repointed and it cost around 2k. Didn't have that readily to hand but could get a 0% transfer for a small fee of £60. We opted to get the work done on credit as the £60 fee wasn't a lot for our circumstances which I appreciate is a very fortunate thing to be able to say.

In the past I did accrue about £7k on credit for paying for our wedding and clothes (weight loss) but I blitzed that in 6 months by taking on two additional part time jobs on top of my full time job. Not something a lot of people could do but I don't like to take on credit without a clear plan to get rid of it.

Sure, but presumably at some point you have to get credit to have debt. It cannot be a closed circle or how would anyone start?

I had zero problems getting a mortgage. Yet currently rated at 0% chance of getting loans or credit cards.

I'm solvent, so it's only a logistical pain for me. But still, it makes me wonder how all this credit is obtained by others.

I think it depends on the type of person you are and knowing how you are with money. I have a credit card, and also an online credit account. I think atm I owe about £2000.

I use them for bigger purchases - furniture, car seats etc. Especially if there's a special financing deal such as paying no interest for 6 months or whatever. In my mind - yes I could take money from my savings to pay upfront but why do that when I can buy it on credit and pay it back as and when it suits me.

I absolutely hate dipping into my savings so if it's a choice between £100 credit card and £100 out of savings I'd choose credit card everytime.

Also for other types of purchase I like the extra security afforded etc by doing it.

But I'm also the type of person who will always make sure it is paid and always overpay more than the minimum amount.

To put into context I think I have a limit of about £5000 across both. So not extensive by any means and if I needed to pay back in full tomorrow I could happily do it.

I’m paying off an interest free credit offer for the boiler when we had it replaced just over a year ago, and another for the carpeting we had put in. Other than that I have a mortgage and student loan. That’s it. I’ve been lucky.

I wonder if ppl know that even a personal loan can be a better option for planned bigger purchases (dentist, sofa...)
usual apr for credit card is around 17-25%. whilst unsecured cash loan is in the ballpark of 4-10%.

It would be much better to teach this than "what does the hibiscus symbolize throughout the book".....

and tbf I only know this as I am working in an EU bank on an unsecured cash loan product. a year ago I had no clue about this. And I even thought that I was financially literate.

We have quite a lot of debt at the moment (about £15k), mainly because post-maternity leave I decided to retrain for a more steady career which meant having to use credit for some of our everyday expenses.

Two years later I am earning more and DH's income has gone up too so we are making a concerted effort to pay it back. It will take us at least a year I think but then we will be in a good position to save and also plan for luxuries like holidays etc.

We've used 0% cards as much as possible and budgeted carefully. Saying that we did go a bit mad at Christmas! But we have to balance enjoying life with the sensible stuff.

I'm currently a couple of hundred pounds in debt, the loan is manageable and going down every month.
Despite having no earned income I'm able to get over £5,000 in credit (which I know I couldn't repay), and regularly have to apply to reduce the amount I am able to use.

I did have 3k on a car finance but will have paid it off by the end of next month. I also have about 300 on a credit card but it's just to raise my credit score, it gets paid off in full every month.

When I needed a new bed, that was on IFC over a year but could have paid it off at any time.

Mortgage and a few things on 0% finance. But also money in savings so totally unworried.
As for credit, could borrow tens of thousands if needed

Only debt is the mortgage. Have bought cars on finance when 0% but always had the money in savings to pay it off at any time.

None im in the camp save up for things and pay cash when My OH was working he earned good money so had several credit cards about £8000 since he retired he has paid off all but one card and now uses that one for deisel etc and pays it off in full each month no mortgage so basically we are debt free and still have a comfortable if not extravigant lifestyle

240k mortgage.
£300 per month car finance
We have credit cards. Dh pays off as he goes along. I've got a little on mines.

We do have about 30k in savings though

Usually our only debts are mortgage and my student loan (DHs is paid off). But we're currently doing an extension and have opted to put things like the kitchen, units & appliances etc on to credit card to allow the cash in the bank to be used for the workmen who don't take card and for unexpected work that crops up. We should in theory have sufficient funds to pay them off once the build is done but it depends on what extras works are needed.

We usually use credit cards and get the cash back on them and pay them off in full each month, this is the first time since buying our very first home that we've had money sit on them for more than a month.

Totally agree @FloatyBoaty and have a very similar story. For many people credit isn't for the frivolities but the essentials and it can be managed and a lifeline.

It's not some sort of badge of honour to have never had any debt but you can sense the smugness in some of these posts

None just my mortgage

“If you can’t afford it you shouldn’t have it”.

Well tell that to the people who would otherwise not be able to feed their families, afford transport to work etc.

Some people have a very simplistic view of life, don’t they.

@FloatyBoaty thanks for highlighting this to others. I totally agree with everything you have written

@Thelnebriati

I'm currently a couple of hundred pounds in debt, the loan is manageable and going down every month. Despite having no earned income I'm able to get over £5,000 in credit (which I know I couldn't repay), and regularly have to apply to reduce the amount I am able to use.

Is there a reason you ask for it to be reduced? Could you just not use it? The reason I ask is that it negatively affects credit checks, so could impact you in the future.

I owe nothing to anyone. Completely debt free.

I have no credit / debt, but I spent the first 10 years of adult life in debt. When it was finally paid off I vowed never again.

I now save £300pm that was being used to pay debt into a Vanguard life strategy account. It builds up quickly so if I need a big ticket item like a car or kitchen I can just use that to pay for it.

I don't have any credit because I don't have any cards, much to the annoyance of my bank who keep phoning to insist that I must need something . Only debt is a postgrad student loan, that will probably never be paid off fully. I learned from another thread that my debt
aversion makes me staunchly working class 😁