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Original poster

People in extreme debt - is this really as common as I’m told?

271 replies

Lesterzap · 16/08/2023 21:02

Chatting to my friend today who works id debt management. She was saying how busy it’s been since covid and COL crisis.

I mentioned how someone I know had ended up owing 20k. According to my friend 20k of debt is now a drop in the ocean and that there’s been a real increase in people in higher incomes owing 70-100k!!! Totally shocked by this. Aside from my mortgage I’ve never owed more that 5k (car loan)

surely that level of can’t be common?

OP posts:
lovewoola · 16/08/2023 22:45

@Banditqueen12 did they include mortgages?

teaorme · 16/08/2023 22:45

Is a car loan (from the bank) secured or unsecured? Know nothing about finances, I know, I need to educate myself

lovewoola · 16/08/2023 22:47

Oh & I have 1.5k minus 4 months of payments on a interest free sofa. I could have used savings but there are in a high interest account.

ItsNotRocketSalad · 16/08/2023 22:49

Middleagedmeangirls · 16/08/2023 22:45

My DD left uni with a good degree and debt of £36,000. It's normal. Poor things.

I don't think many people consider student loans a debt in the way this thread is talking about debt. It's more of a graduate tax.

AnxiouslyWait · 16/08/2023 22:50

I have 175k student loan debt and I find that terrifying. Thankfully don’t have any credit card debt

Pallisers · 16/08/2023 22:50

I recently discovered my friend has about 100k in debt. He has a repayment plan in place and possibly has some equity in his house (not sure about that though - definitely still has a mortgage). He isn't young either. I'd find that terrifying but I understand why he has the debt -self employed and ran into real difficulties for a while.

BIL has unsecured dept of at least 400k but probably more, owes money to family, maxed out credit cards, overdraft, up to the limit of the mortgage - the lot. He has a big job, big income and a big lifestyle but has always lived beyond his actual means - even though the means were very high. To make it worse, I don't think his wife knows.

BlueMongoose · 16/08/2023 22:52

I think a lot of people who were quite well-off and have always been insulated from debt have got caught out by the combination of large rises in interest rate rises and unprecedented fuel costs. In some ways, those on narrower incomes are used to being caeful of getting into debt -even though of course they have been hit hard too- but those who have always had a lot of disposable income got used to running up big credit card bills because they could always pay them off. And they can be a bit too 'I deserve' this that and the other thing, which most of us would regard as luxuries to be saved up for or done without. It takes a while to change a mindset.

Ineedwinenow · 16/08/2023 22:52

I currently have 88k of debt, I had to have a life changing/saving operation that the NHS wouldn’t pay for so had no choice but to go private, we are chipping away at it and are fairly high earners and we will get there eventually but for my circumstances it wasn’t spent on shopping, cars or day to day expenses it was on medical bills

boomtickhouse · 16/08/2023 22:54

multicolouredbunting · 16/08/2023 21:26

Im 3k in debt and I'm panicking. Will calm myself down.
blimey people nearly 100k in debt 😳

Don't stop panicking.

Deal with it now, before it gets worse.

lovewoola · 16/08/2023 22:54

@Ineedwinenow sorry to hear that & you make a good point. I have a relative who spent similar during lockdown as the waiting lists were so long. Too many people think debt is only incurred by too much shopping, holidays etc.

mommatoone · 16/08/2023 22:56

I had to go bankrupt back in 2011 after my wanker ex fucked off and left me with a pile of debt. I didnt have a choice. Mine was in excess of 80k (involved house etc)My mindset at the time was - if its 2k or 80k , there was nothing i could about it .As daunting as it sounds, there are so many things in place these days that can help people manage debt. Anyone of us can find themselves in this situation.

lovewoola · 16/08/2023 22:56

@AnxiouslyWait 175k! what did you study?

BitOutOfPractice · 16/08/2023 22:56

BlueMongoose · 16/08/2023 22:52

I think a lot of people who were quite well-off and have always been insulated from debt have got caught out by the combination of large rises in interest rate rises and unprecedented fuel costs. In some ways, those on narrower incomes are used to being caeful of getting into debt -even though of course they have been hit hard too- but those who have always had a lot of disposable income got used to running up big credit card bills because they could always pay them off. And they can be a bit too 'I deserve' this that and the other thing, which most of us would regard as luxuries to be saved up for or done without. It takes a while to change a mindset.

I agree. I think those on lower income are getting squeezed every week.

but I do wonder if the more well off, with big financial wheels to turn, who might see their mortgages increase by 2,3,4k a month, might be on the brink of financial disaster too.

Ineedwinenow · 16/08/2023 22:58

lovewoola · 16/08/2023 22:54

@Ineedwinenow sorry to hear that & you make a good point. I have a relative who spent similar during lockdown as the waiting lists were so long. Too many people think debt is only incurred by too much shopping, holidays etc.

Yes exactly! Unfortunately the NHS do refuse a lot of life saving treatments and I guess I was the unlucky one who lived in the wrong postcode area.

I’m on the mend but it’s been just over a year of pain/reconstruction and there’s definitely the light at the end of the tunnel for me, I’m much better health wise but poorer for it!!!

Bloody NHS 😆

BlossomCloud · 16/08/2023 22:58

Ineedwinenow · 16/08/2023 22:52

I currently have 88k of debt, I had to have a life changing/saving operation that the NHS wouldn’t pay for so had no choice but to go private, we are chipping away at it and are fairly high earners and we will get there eventually but for my circumstances it wasn’t spent on shopping, cars or day to day expenses it was on medical bills

This is a good point. But its also a good reason for people not to be complacent about frivolous debt because it might prevent them obtaining debt when they really need it

Bonfire23 · 16/08/2023 22:59

pinksheetss · 16/08/2023 21:10

I'm in about 15k of debt from cards and loans and that terrifies life out of me.

It's slightly reassuring it's more normal but I still find it stressful and want out asap but it feels a never ending circle. Will never manage a mortgage with this

This might not be helpful but I got a mortgage with adverse credit from a broker called simply adverse. Expensive (they added the fee to the mortgage) but excellent

unicornhair · 16/08/2023 22:59

I think people expect a much higher standard of living even if they don’t earn that much.
I was always stunned when I did peoples wages were people who earned say £16k a year were driving a brand new Audi etc, I assume on PCP. To me it’s insanity.

AllTheChaos · 16/08/2023 23:00

I had a lot of debt myself a few years ago, but to buy in the area I wanted I had to get a ‘fixer uppper’, then used an interest free credit card to buy the new kitchen and bathroom, and a loan to pay for the work (incl new plumbing and electrics etc.) Prioritised paying it off over 3 years. Was hard but meant we had a lovely place, and the equity helped pay for current house. Couldn’t access the funds via a higher mortgage, but could via unsecured credit, which seemed really strange!

Ineedwinenow · 16/08/2023 23:01

BlossomCloud · 16/08/2023 22:58

This is a good point. But its also a good reason for people not to be complacent about frivolous debt because it might prevent them obtaining debt when they really need it

Show quote history

Yes, unfortunately emergencies happen at any time to anyone, I was really healthy and I was lucky that I didn’t have loans or credit cards but very unlucky with what happened and I’ve been lumbered with a 100k ish bill to boot ( I’ve paid 20k off) but the 88k left will be a long slog for us as a couple

Nat6999 · 16/08/2023 23:02

I was £25k in debt when I left exh, that was without the mortgage.

lovewoola · 16/08/2023 23:03

but I do wonder if the more well off, with big financial wheels to turn, who might see their mortgages increase by 2,3,4k a month, might be on the brink of financial disaster too.

A lot of them will have fixed mortgages, lots of equity & higher salaries makes it easier to switch to interest only etc.

Puccini1900 · 16/08/2023 23:03

Does this include student loan debt? Are student loans 'unsecured debt'?

...if so, I'm probably in about £53k debt...

continentallentil · 16/08/2023 23:03

Well she is the expert!

I think It is though yes.

lovewoola · 16/08/2023 23:04

@Ineedwinenow glad you are doing better

Ineedwinenow · 16/08/2023 23:06

lovewoola · 16/08/2023 23:04

@Ineedwinenow glad you are doing better

I am! My consultants are both predicting I’ll be a fully functioning adult again by December! I’m getting drunk this Xmas, missed it totally last year so will be celebrating twice Grin