Is debt considered normal these days?

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Just that, really.

We have a car on finance (good deal) and mortgage but otherwise refuse to buy anything on credit - no pay later, overdrafts, credit cards etc. As soon as the car is paid I wouldn’t get another on finance either (husbands idea to do it and I don’t want to again!).

If we want something like a holiday, new furniture whatever we save for it.

A good friend of mine recently shared with me that her and her husband have just under £30k on credit cards, plus a holiday for £4K that needs paying before the summer. Plus car plus mortgage.

She said this without a care in the world - as though it was normal and she’d pay it off later.

They’re good earners so I think they must be living hugely out of their means but she seemed shocked that I was shocked by it?! I hate the car finance as it is and think I would feel incredibly stressed with that credit card debt sitting over me?

I know there’s an element of keeping up with the Joneses etc but I was so surprised (she spends a lot, regularly posts her days out etc on social media).

I dunno I think it depends on the person. For me personally I have none. I don’t even have a credit card, that’s not a brag/boast etc but I just have never needed one.

I use a credit card for the extra protection but always pay it off in full each month. We also have car loans etc but that's because we find it much easier to budget a monthly cost than spending £15k in one go for example.

You are sensible OP!
However, you should try to build up a credit rating - it’s quite easy to do, just pay for something (e.g. monthly rail fare, food shopping) on credit card and set your payment plan to clear it each month…

I've never borrowed anything except a mortgage, considering if I can't pay for it I can't afford it, and do credit that policy with the fact that I'm pretty comfortable now.

However, I do think my view is unusual now, even among people my age. A colleague bought a car for cash after an inheritance and other colleagues were horrified "who pays cash for a car?"

I have a credit card for the consumer protection it goves buty always pay it off in full every month. I did take out £10k loan for our bedroom furniture for two rooms in our new house but that was because we needed approx the same amount to fund dd through drama school. We paid it off within 12 months.

It just comes down to the individual I think.

A friend recently revealed to me they’d funded a three week luxury holiday on credit cards to the tune of ~£20k and I was also quite surprised by that decision as it seems so insane.

I imagine it can get a bit addictive.

And - I think a lot of people use credit cards to cover major purchases that are essential or job loss. A different kind of borrowing but probably accounts for using credit cards.

I used to pay cash for cars but most recently we have taken out finance because the interest due was less than the amount we saved in the MOT/servicing that was included for the 1st 3 years. we always pay maximum deposit though and pay it off as early as allowed.

we only have a mortgage. I do have a credit card, but it is because travelling they always want a credit card to hold a deposit on like for car rentals and hotels ect so I have it for that.

Interesting re cars as among my peers cars are either:

• second hand bought in cash
• salary sacrifice electric cars through work

I can’t think of anyone saying they’ve bought one on credit.

I never buy anything on credit. The only debt I have is the mortgage. Never have done. Always just wait until I've saved it and if I can't do that I either can't afford or don't need it enough. There is almost always a second option.

It's definitely normal in the sense that noone would think soneone was abnormal for having some money owing on a credit card.

It does seem a bit odd that you have a car on finance yet judge your friend for having debt. I'm not sure why your debt is superior to hers in your eyes.

Depends. I do think some people slip with debt a lot and as so many have it, it becomes just one of the normal things.
I did have quite a few k on 0% card for couple of years (house renovation). The same money were making me interest in savings. Just paid minimum required and paid it all of before end of 0%. Actually ended up in plus that way.

I can’t see a problem with credit as long as you can afford it.

No debt - I only buy what I can afford.

Why does the OP need to build up a credit rating if she's already got a mortgage?

Hmm we’re sort of middle / low income and we use 0% credit a lot for things - holidays, large purchases, house repairs. We have no savings, we use credit and then pay it off. Some would say that’s terrible but it just works for us. We have about £6k of debt. But - we have low outgoings, no mortgage (paid off), no car finance (motability car, I’m disabled), we don’t borrow more than we can afford to comfortably pay back. We don’t worry about the debt. If dh lost his job tomorrow we could still pay it off through my income (inheritance, disability benefits, previous high income etc). So to us it’s a non issue. But to others - for example my Mum, when she was alive, she would be horrified!

I think for us a part of it is that I suddenly became severely disabled about 5 years ago, on highest rates of pip indefinitely and Ds is also disabled. We live for now. We have no idea how long I’ll be around or what life might be like in 5-10 years time. I’m not going to miss out on holidays etc, making memories is really important to me.

The vast majority of adults have a credit card.

a few pay it off every month, most might use it to spread a big purchase (eg holiday or similar), a few have a lot of debt on them.

it is unusual not to have a credit card.

finance on some large products can also be a very good deal. They’ll often offer much more money off the product if you take the finance which legally they aren’t really supposed to do.

car finance until recently was a very very good deal due to low interest rates. Less so now.

i am considering leasing a car rather than buying my next one honestly just because I want a big car (multiple wheelchairs) but don’t really want to own it.

She has a mortgage and a car on finance- she’ll be fine!

There will always be people who wilfully live beyond their means. We have had forty years or more of consumer debt being normalised. We are also in a cost of living crisis. It’s not really surprising that some people carry large balances. I couldn’t stand it myself.

Not normal for me. We don't have any debt at all and wouldn't take any on either.

Credit cards are great for the extra protection that give you, so get one, use it and pay it off.

And a car loan.

Aside from my mortgage, I have about £15k credit card debt. 0% interest

And a lot more than that in 5% savings...

Gotta love a good stooze.

I assume if you can put a 20k holiday on a card you have been granted that much credit so can presumably been assessed that you can afford to pay it off

I am over drawn and maxed out in credit card 1.5 k

ive not had a holiday in 13 years and haven’t bought clothes or unnecessary toiletries for a year this is just living and paying bills ( we have had to replace some white goods and some expenses have come at once )

if you are not in this position , well good for you ,

Not all debt is equal. We have debt, and we have savings. The interest we receive on our cash, almost covers our interest free loan repayments. We would be worse off without the debt.