How much debt are you in?

[eyelinerpencil]

Was chatting to a friend earlier who is in over 500k of debt, which she thought was ok but I think is astronomical.

I will say - though I am debt free I rent. So I expect to be debt-ridden in the next 3-4 years when I finally get on the housing ladder.

Mortgage: £500k (£350k equity)
student loan (plan 1): £12600
credit card (0%): £8k
kitchen finance (0%): 9k

total: £529600

We have just remortgaged to fund a house extension/new kitchen etc so the debt was planned debt. Monthly repayments are all affordable and household income is high at £155k per annum.

Credit card debt will be tackled first, then my student loan, kitchen finance we will just let tick away over the next 4 years.

My debt is £630k mortgage and £3k on a credit card. Nothing else. Our income is £200k p/a.

Am just curious – have you not started paying off your student loan? Plan 1 ended in 2011 and the max loan was £12-14k.

Just the mortgage and we have 75% equity, so not a big deal. We’ve historically had quite a bit on credit cards though, so far from perfect debt free mumsnetters! Oh and I’ve still got about £10k student loan but I don’t think I’ll ever pay that back now - I’ve never earned over the threshold.

OP, a mortgage isn’t debt in the same way that credit cards, loads and overdrafts are. Yes, technically it’s a debt if we want to be pedantic about it, but it’s also an investment that eventually results in an asset, so not at all comparable.

I think it’s a little disingenuous to say that your friend is in £500K of debt when that includes her mortgage.

I’ve still got ~£16k on a plan 1 loan. Had max loan for a 6yr course and have had 2 mat leaves since graduating. So it keeps accumulating interest

Mortgage, only just bought first house though. About 27k of other debt which dates back to when I was younger and trying to live beyond my means. Then cleared loads of it then had a baby. Cleared again then bought a house and was doing work, buying furniture as rented before. Now I’m determined to get rid of it for good. In that is my car which I owe about 7K on.

It would be good if we came back to this thread in a year’s time and I could say about 17k ☺️

I’m the poster they quoted, but you answered better than I could 😊

£140k of mortgage (cheap house though, have about 60% equity) and nothing else. Old cars, old kitchen, no extensions or fancy refurbs, pay for holidays up front now. Trying to build up reasonable savings cushion for emergencies. Might consider borrowing more against the house in future for refurbishment.

I very much don't consider them a graduate tax because a tax wouldn't only apply to people below a certain age whose families didn't have money to pay them out of it, but otherwise agree.

Still owe money on mine and just don't see any reason whatsoever to voluntarily pay them off. It got sold to a hedge fund anyway, and the repayment terms are rather advantageous in my circumstances.

Because I live in a low COL area where the threshold buys a lot more than in some places, but also because it's about types of income rather than a combined amount iyswim. So my income can and does go over the threshold. But because no one source of it does, I don't have to pay the hedge fund it was sold off to for the impertinence of being born academic and working class after the early 70s.

Sadly ive been paying it off for years! I went to uni in London, so got the tuition fee loan (3k per year) and the maximum maintenance loan (6k per year). Total amount was just shy of £30k for all 3 years