Debt.. if so, how much?

[Onetwobuckeroo]

Evening. For a bit of context I worry about money constantly. My husband doesn’t but understands why I do.

I was brought up to save, don’t buy anything without saving first etc. My husband’s family are more live for the day.

Please help me rationalise my constant worry. Do people have debt? My husband tells me everyone does, it’s normal. Then how much is “normal”?

I appreciate it’s a subjective question.

Ave salary up here for an office job is circa £23000, once you paid tax its £1673 a month, take your pension out of this say £80, leaves you with around £1590 a month to live on. Rent around 7-800 a month, council tax 100, water 35, gas/electric 180, etc. Then car, insurance, food, phone, broadband etc. It's not a lot to live on even if you are being frugal - this is why so many people turn to CC, loans etc and then there is a debt to repay on top of all the bills. Even with min wage increase there is still not going to be a lot left in the pot for many people.

This is an incredibly simplistic way to explain to people who are drowning in debt, or not necessarily drowning but struggling. I was recommended this and honestly I just couldn't understand it, I know that makes me sound a bit stupid but I literally couldn't.

The idea that everyone in debt is driving a huge car and going on amazing holidays just to keep up with the Jones' is not that simple is just not true. I used to buy things, hide them and never use them. And the shame made me never speak to anyone about it, I still find it really hard to speak to anyone IRL about it because it's so taboo. To all the people above who are great with money, I honestly envy you because it's something I wish I had in me. I'm so much better now but I've had to cut any credit available to me (even though my bank has just offered me a £10k limit CC!) as I'd just do it again.

BTW - not blaming anyone except myself here, but reasons for people getting into debt can be complex and I really wish we'd remove some of the stigma around it so people would be able to talk about and maybe do something about it before things got to levels that feel unmanageable.

Just mortgage and car finance. We replace our car every 4 years, so we'll always have car finance (until we near retirement, then we'll buy a little fiat 😂). It's not for everyone, but my husband is a high earner and he doesn't drink, smoke or gamble - a nice car is his only vice!

No debts or mortgages. Which is just as well as the teenagers are costing an arm and a leg!!

We do, we are early 30s and bought our house but only had enough for the deposit really so I would say we have roughly £8k
However, house prices sky rocketed and the value of our house has gone up 60k since we bought it so if we had waited we would have been paying more.
We are working to pay it off asap but it's hard I wouldn't recommend it and we will never do it again.

Probably like many things in life it's pretty much a 50-50 split

Apart from mortgae I have never had debt , always save or go without - it's just the way I am wired. Dh is the same so it's quite easy.

None now. Only ever had a mortgage and credit card I could pay off every month. Never had a car loan.
Just didn't have it if I couldnt afford it - saved!

Yes I have debt

£79,000 on mortgage but will be paid off in 3 years and house is worth £500k

£6k loan

Car on lease but if I had difficulty we would sell the other VW transporter

We have a combined income of £100k so it doesn't worry me too much.

Worrying about debt is a working class response. Some debt is positive and enables you to build assets.

Todays credit card balances are: £21,983.

This is extremely high for me, typically I'd carry no balance but I'm currently stoozing. All my debt is either on 0% balance transfer cards (£18k worth) and I have the funds in savings to pay it off earning 5.15% to 7% interest or my cashback spending cards, I'm earning cashback of 0.5% to 1.25% per £ spent, these spending cards I pay off in full every month. Current cashback earned is over £225 for this year.

I'm no longer scared of debt whilst savings rates are quite decent but I will always make sure that my savings are higher than debt and don't take account of the contra sum when working out my net savings.

Nope. Mortgage only. Staggered by how many people change their car every 3y on tick.

If you want something, save up for it.

I'm in an awful situation.
I was also raised to not to borrow and be in debt and by nature am a saver.
My circumstances changed and I found myself alone with my children and our pets.
I now have 30k of debt - credit cards.
I rent a house and my salary covers our basic monthly costs.
I have put clothes for children/vets etc on credit cards but am unable to repay the monthly amounts.
I'm working with stepchange to come to a solution.
I'm a professional and I earn approx 34k per year, not able to increase my earnings.
It's awful but after all I have been through in the last few years it is not the worst situation I have found myself in. I hope to resolve it.
No hope of ever buying a home or being very financially secure despite working really hard. Just feel like you are surviving.

The idea that everyone in debt is driving a huge car and going on amazing holidays just to keep up with the Jones' is not that simple is just not true.

I haven't said that.

I was recommended this and honestly I just couldn't understand it, I know that makes me sound a bit stupid but I literally couldn't.

What part don't you understand?

The reasons for people getting into debt are often complex. Some people (me!) are stupid, some are unlucky. The easy access to credit in this country is insane. And pp was right, this thread is self selecting so those sensible with money are happy to share. It really doesn't reflect the majority.

OP, debt is a trap. It's a trap that most have become used to, but it's still a trap that stops people from creating wealth.

I'm like you, so I started saving and investing in my 20s as soon as I had a steady paycheck. 40 years later I never have to worry about money again, nor do I have to hope for an inheritance to avoid poverty in old age, because I delayed SOME gratification early on.

I have a fully paid off house and no debt whatsoever. I paid off my first house at the age of 33. My retirement coffers are full. I buy what I want when I want and am very generous to others. All because I put money aside early, added to it regularly, and sat back to watch it grow. You can't do that if all your money is going to pay debt.

I hate to tell you , they might get nowt.

Agree. I don't talk about it, and I try really hard to pay it off as fast as possible. I worry, too. Solidarity.

Worrying about debt is a working class response.

That is the daftest thing I've heard in a long time. And incorrect.

Mortgage, plus approx £10k debt due to unforeseen business costs, & a holiday we, in hindsight, shouldn't have gone on. Cannot wait to be rid of it, is a noose around our necks and stops us from being able to upgrade our ancient cars. Income is the lowest it's been for a while & really we are just existing at the moment. Expecting a small inheritance in the coming months, so will hopefully be able to clear the debt and start again at 0.

'@timetodecide2345
Worrying about debt is a working class response.'

Daft...

I’m debt-free now in my early 60s but in my 40s and 50s I had up to £40k in overdraft/cc/HP, plus a mortgage. I know it sounds weird but I wasn’t too worried. I was using debt to help me achieve what I wanted (private education of DC) while also slowly building up my pension and paying off my mortgage. Gradually the balance tipped. I took additional mortgage borrowing to pay off some cc, took some tax free lump sum to pay off some cc, DC became fully independent so could pay off rest of cc, £20k inheritance paid final bit of mortgage, and here I am. I paid a fair amount of interest over the years but have always had modest tastes - apart from the mad penchant for private education - so it was fine.

That said, I had equity in the house and a tent, so knew I would always have a roof over my head. My profession means I could always earn more when I needed to (which I often did, as XH was a spendthrift). And my DP were comfortable, so I had that amazing safety net if everything went completely tits up.

Racking up debt on ‘stuff’ with no plan and no safety net and no scope to increase income is really stupid. If we were more open about it, perhaps people who are tempted by ‘stuff’ would be better guided. But so often people end up in debt through illness, relationship breakdown and redundancy. This is where the tragedy lies.

I have a mortgage of £75k
additional mortgage £12K for some home improvements
Car on finance £10K
I'm 36.

Never had a credit card but have had many, many things on interest free credit over the the years, and I still occasionally Klarna things, all within my means.

I don't think all debt is bad if you can afford it.

Debt is debt whether it’s a mortgage or other things. If you can afford it, it’s not a problem. 🤷‍♀️

Having experienced the stress of barely manageable credit card debt, I refuse to borrow any more, except for mortgage. Student loan doesn't count.

It depends to what extreme you are trying to take your savings approach to!

Dh: takeaway tonight? You: Nope let’s keep saving, takeaways are a waste

DH: we need a new bed you: let’s see if we can buy second hand

DH: I want to go out at the weekend you: are you sure you want to waste your money on a night out? Why not stay in and have a glass of errr water

😂😂😂

There’s a middle ground op and I’d recommend you both compromising on your approaches