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Original poster

To have no debt

31 replies

Gravelator · 07/09/2024 15:39

Is it really so unusual to have no unsecured debt? My friend thinks that it’s very unusual that somebody of my age (35) with 2dc’s to have zero unsecured debt. I’ve never had a loan or credit card or anything like that. I do have a mortgage tough.

this isn’t a bragging post btw. I’m not loaded or anything, I’ve just always paid for stuff outright. Is that so unusual?

OP posts:

Mrsttcno1 · 07/09/2024 15:54

I’m not sure if I think it’s unusually generally, but it depends how you’ve been raised & what parents etc do I think.

We are the same as you, we have a mortgage but no loans/credit cards, we save for things and then buy them outright rather then put things on cards or finance them, but I think that’s a combination of how my parents were and also just planning on our behalf and really a bit of good luck.

We’ve been lucky in that we’ve never really had a huge unexpected expense, or multiple expenses in quick succession, that we didn’t have savings to cover. I’d love to say that’s all down to perfect planning and part of it is in the sense that we do save each month for these things, but a lot of it is down to luck, for example my friend was the same and then in the space of a couple months her car broke down and repairs were a fortune, a leak sprung up at home which needed repairing and in the process of leaking damaged the sofa and the flooring so both needed replacing, and child nursery changed payment system so suddenly had to pay that in advance.

WorkCleanRepeat · 07/09/2024 16:09

It's unusual in my social circles. We all have credit cards (Used to varying degrees. Ours are ot used in an Emergency)

MinervaMcGonagallsCat · 07/09/2024 16:15

I'm 50 and only have a mortgage

I have a credit card but clear the balance each month.

Precipice · 07/09/2024 16:16

I think it's comparatively rare to not have credit cards at all (though I don't), because there are greater protections for payment with them on larger purchases and because they often some with some benefits. However, I wouldn't really consider credit cards which are paid off within the month, so before any interest accrues, to be unsecured debt. It's such a short term one, a bit akin to having a brief debt on your energy account before the direct debit clears it.

Student loans aren't secured against anything, so if you're counting them, I'd say it is rare not to have any debt in your 30s.

Hatty65 · 07/09/2024 16:16

I'm obviously a lot older than you (almost 60) but I've never had a credit card or any debt apart from a mortgage. We were brought up to think that you saved up for stuff - so we've never put holidays, cars or anything else onto a credit card.

We saved for big items, bought second hand or went without. I have DC around your age and they are the same as us - I suspect that's how we brought them up. To not live beyond your means.

Moier · 07/09/2024 16:17

Never had a credit card either.
Although when l got my big pay out ( just over 3 mil) my bank wanted me to get one.
I didn't need one or want one.
Before my payout l didn't have debt either.
No mortgage ( l rented).
Now l own my house.. one in the Canaries ( which I'm selling to buy another some place else).
I'm also lucky l got my daughters an house each and got them debt free .
But l think your friend isn't correct.. of my friendship group.. apart from mortgages only one has debt.

CandleBlowerOuter · 07/09/2024 16:25

I think it is rare and you are also lucky that no situation has been thrown at you where you don't have the available cash/savings and had to use your credit card to an amount you can't clear in a short time. Not everyone spends on a credit card for fun, some people do it in dire circumstances, job losses, divorce, child with cancer so have to quit work, long term illness etc.

I used to debt collect as part of my job, some situations are truly heartbreaking, luckily I worked for a company that had the discretion to be able to write off the debt. We weren't heartless, any time I could do it I did for those in shitty situations.

Personally we just have the mortgage. We have bought cars outright and clear our cashback credit card every month. I recognise not everyone is that lucky but I grew up poor, being sent to answer the door to the milk man collecting his money and lying telling him my parents weren't in, that humiliation has driven my I can wait for stuff attitude.

Cantabulous · 07/09/2024 16:30

I’m 61 and until a year ago (when I paid off my small remaining mortgage with a small inheritance) I always had unsecured debt of varying amounts. I’m self employed so cash flow is distinctly lumpy, which credit cards helped smooth out. I like the protection element of them too, so I’ve carried on using my card and just pay the balance each month.

I believe that if I’d had the ‘debt is bad’ mentality I would have done/achieved/accumulated a lot less in my life. Every individual has a different attitude to risk though; mine has always been quite positive towards it.

BobbyBiscuits · 07/09/2024 16:34

Most people I know have some form of debt, mortgage, or simply an overdraft.
I don't really see what difference it makes. As long as you're able to pay stuff comfortably. Which of course lots of people can't.
I currently don't have any debt. It took me seven years to pay my credit card after I could no longer work. I'm very lucky that I don't need to borrow. I have no money, but hey. Something has to give. Just be thankful you don't need any loans and that you can pay the mortgage.

Memba · 07/09/2024 16:34

No mortgage (paid off), no car finance, but we do have approx £10k credit card debt. It's split over different cards which we move and/or pay off regularly so it's always interest free. It's a good way to maintain a healthy credit rating!

junebirthdaygirl · 07/09/2024 16:36

My dad went through his whole life never having any debt except a mortgage. As soon as he bought a car he started saving for the next one. He tried to teach us the same but l do have a car loan..no mortgage though as its paid off. But no credit cards or small loans. Its a good way to live as it saves a lot of stress. We save for holidays and new appliances etc. Could have no car loan if l went for an older cheaper one but when it's paid off l will keep it for years.

Emily1583 · 07/09/2024 16:36

Got myself in about £3k in debt with credit cards when I was in my early 20s. Managed to pay it off but I've never wanted to have a credit card again since. If I don't have the money in my bank account then I simply don't buy it.

Lovelynames123 · 07/09/2024 16:36

I reckon most of my circle have a mortgage but also car lease/finance. I use a cc for large purchases/holidays for the protection but pay off in full every month. I have savings for emergencies and save or budget for things I want, would hate to be in debt. I don't think I'm unusual

Bornnotbourne · 07/09/2024 16:47

Have a range of friends who have no debt including being mortgage to single mums who owe payday lenders, buy everything on finance and live pay check to pay check. It really depends on your situation and social circle

rainbow1902 · 07/09/2024 16:57

I have no debt at all I don't own a credit card either never have.

rumblegrumble · 07/09/2024 17:11

I have a few thousand on credit cards with 0% interest as I can get over 5% on savings at the moment. I have the money to pay them off if I wanted though so not sure if it counts as debt. I wouldn't want to have debt I couldn't cover, though I would consider it for big, important purchases like home improvement or a car. Or in an emergency, obviously.

Meadowfinch · 07/09/2024 17:18

No, I don't think so.

I have a mortgage, and I have a credit card which I pay off every month.

If I want something big, I save up. I have a car fund that I pay into every month. After 10 years, there is enough to buy a newer car. Holidays are the same, save up, separate pot.

We were pretty much penniless when we were kids and I've grown up fearing debt so I always save an emergency fund before I spend anything at all on myself. I'm sure I'm not the only one.

ShanghaiDiva · 07/09/2024 17:23

Have never had any debt but luckily I went to university in the 1980s- no fees and a full grant. I have a credit card but pay off in full every month. I think it’s unusual not to have a credit card.

Bellyblueboy · 07/09/2024 17:29

I don’t think it’s that rare.

I occasionally have a car loan - but haven’t had one for six years now. I use a credit card for big purchases for the protection but pay it off every month.

credot cards are awesome - I booked flights on an airline that went bust. One phone call to the credit card company and they arranged an immediate refund.

suburberphobe · 07/09/2024 17:31

I have no debt but I do have a credit card as I need one to secure a booking for a hotel room if I'm travelling. Gets paid off every month when I've used it.

DramaAlpaca · 07/09/2024 17:35

I don't do debt, other than mortgage which is now paid off. If I owed money it would make me very anxious. DH has a credit card, I've never bothered.

Overthebow · 07/09/2024 17:45

I don’t think it’s unusual. We have no debt other than the mortgage. We do have credit cards but don’t use them usually, unless it’s a big purchase and we want the protection but then pay it off straight away. We just don’t buy things if we can’t afford them, I wouldn’t go into debt for something like a holiday or sofa.

RaraRachael · 07/09/2024 17:48

I've never had any debt other than a car loan when I was younger. I have a credit card that I barely use and pay off the amount each month.

I've always been careful with money and never bought anything if I didn't actually have the money for it.

I see people buying stuff that they probably have racked up thousands of pounds of debt for but I just couldn't live like that.

Redlocks28 · 07/09/2024 17:50

I think a lot of people have credit cards, even if they only use them for big purchases. having one is good for your credit score.

We don’t have a mortgage (paid it off) but do have a credit card. We put big things on it and use the Tesco points for stuff. We pay off the balance very month.

KarmaKat · 07/09/2024 17:50

Nope, 39 and ‘just’ the mortgage too

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