How much debt are you actually in?

[Hc68759]

Mortgage has about 70k left on it.
No other debt between me and my partner. I used to have about 25k worth of debt on credit cards and payday loans when I was younger and it took me years to sort out in a debt management plan. I’m really careful now and only spend when I have to.

 

[50sGirl]

I really wouldn’t worry about student loans, they aren’t a debt as they don’t show on credit scores and aren’t seen as a negative, there not taken into account when taking out a mortgage or loans, and they get written off after a certain amount of time, it shouldn’t put people off getting a degree. Martin Lewis explains it really well on one of his shows that they shouldn’t been seen as a bad thing.

Oh I know, we’ve told him to view it as an extra tax once he starts earning.
I’ve always had the mantra, if you don’t have the money, you don’t buy it, so as a person who has never been in debt (obviously we did have a mortgage), then I find it hard to get my head around.

 

[OmgObsessed]

I'm honestly scared that I'm about to be in debt from my Masters. I'll be around 30 when I finish my degree. I wish it didn't have to be this way.

 

[Justlooking19]

I was also going to advice consolidating i to one debt.
It’s hard for people and I understand that if something goes wrong people get into debt in one month and then can just never manage to get out.

I grew up in South Africa and my dad drilled into me from a young age not to buy anything on credit. It’s been great because I’ve never really had any debt (apart from mortgage) but on the other hand I think it’s also left me with some issues as I find it hard to spend money on myself. I’m forever squiralling away money, like you will find about five different places in the house I hide money and then have all different savings accounts . I think my dad talked to me when I was too young and it has left me scared of being made homeless and I mean the proper left on the street homeless.

I have the same issue, can’t spend moment on myself but in one good way I have paid off my mortgage. I lost my job a couple of years ago and only after four years have managed to get something permanent. So in hindsight good job I did pay my mortgage off

 

[Brianbadonde]

I think I need to grow up in terms of my position, whilst it’s getting better, it’s far from ideal and sometimes I just cry and despair at what I’ve gotten myself into. If I could I would enter an IVA I think but my occupation prevents me from doing so. It will get better though



I dislike this as they make you feel, or me at least, like I should do it or that I’m ‘entitled’. It’s poor on their part in my opinion

Have you looked into a DMP if an IVA isn’t an option with your job? Used to work for a debt management company and could be something to look into.

 

[Hallobrit]

Right now I'm down to £235. I rent, dont have a car, don't have any savings and very little 'fun' money each month (wages vary month to month so it can range between £20to £100 going spare) when all the bills are paid. I've had some huge expenses the last 18months, paying for my mum's funeral, moving house. I'm slowing putting as much as possible into doing up my new place. But it's a lot of pressure tbh. I loathe my boyfriend having to pay for something as simple as cinema tickets and the varying wage is anxiety inducing. I am looking for something else BTW before anyone suggests it

 

[caterday28]

Student loan. A big chunk of (though luckily pre-2012 9k fees).

 

[bobby88]

I find this thread so interesting, I'm a nosy cow and love seeing other people's financial situations, probably because it's quite taboo and nobody really talks about it with their friends and family!

I have 2 mortgages with my partner - one for around £80k on the first property we bought together which we now rent out and about £170k on the property we live in. I don't really count these as 'proper debt' though as I don't really think about them, the direct debits go out every month and I've accepted this will be the case for a long time!

We owe my mum about £9k (was £15k initially!) as she lent us some money for home improvements and we're currently paying her back £500 per month between us - I'm extremely grateful for this and realise how lucky we are to have been able to borrow interest free from a family member and not had to take out a loan.

My partner and I both have about £400 each on our own credit cards, I pay off a little bit of mine every month but am not too concerned about it as its currently interest free and I don't need to use it that often but its comforting to know its there for emergencies.

 

[summersuzy]

Has anyone any advice on what a good safety buffer savings amount would be. Like what are people comfortable with? 2021 is my year for getting sorted financially!

 

[VioletSkies]

I’m 23 and have no overdrafts or credit cards. I don’t have a student loan as I didn’t go to uni (baby at 18)

I have a few debts with catalogues and a credit card as a result of financial abuse/fraud by my abuser. The companies are aware and the debts have been defaulted so they don’t keep going up. Since they reached CCJ level I’m working on getting them removed from my credit rating. I probably won’t be able to afford a mortgage until they’re automatically removed anyway so it’s not urgent! I can still rent with a guarantor and don’t drive so don’t need car finance.

My genuine debts are: I owe £4 to eBay (failed listing) and have been banned for not paying it I don’t agree on having to pay for a listing that didn’t sell. I don’t like their threatening emails over such a menial amount and will pay them the £4 when they speak to me like a human being! I also owe a couple hundred to Severn Trent from when they stopped doing paper bills without my knowledge. No idea how they got my email but it was an old one that I don’t use and only happened to see the overdue bills when I got hacked on FB and needed to access the old email to get back into FB. I also owe £40 to Klarna for some clothes but I’m in the process of moving next weekend and need the money for the deposit/first months rent so I’ve delayed it with them and they’re okay with it.

I personally don’t know any adult that isn’t in some sort of debt. Whether it’s credit cards, overdrafts, car finance, student loans etc. I don’t know if it is truly possible to live your whole life debt free unless you’re a millionaire

 

[Cocopops91]

In my area, it is much cheaper to buy than to rent, but each to their own I guess. Plus, I don’t like the idea of paying a landlord every month. And there are many benefits to owning a home. I find it interesting, and of course you are entitled to your opinion.

Also, investing is not guaranteed and you cannot pass anything on if renting.

I can’t pass bricks and mortar on no, but I can pass money on. I don’t just invest in banks etc, I invest in items too.

 

[Countrybumpkingirl]

Tuition fees are over £9000 per year now. If you get the full maintenance loan (no longer a grant so now needs paying back) that’s a further £8-9000 per year. A Masters is 4 years.
£18000 x 4 = £72000.
My son changed university after year 1 so at the end of it he will have been studying for 5 years and accrued about £87000 worth of debt.
I find it sad because we, as his parents, have zero debt and he will be starting out in life with such a huge student debt. Plus they get charged interest from day 1, even though they are unable to start paying it back until after they graduate.
I dread to think how much it will be once that is added on.

I have a huge amount of student debt however after 30 years they write it off. It is hardly a big payment per month and doesn't affect credit history so really I would never worry about it or try and pay it off early. I think per month I pay 50 quid or something. As it comes straight from my pay I don't really think about it. It is similar to pension etc to me

 

[binlova]

385k homeloan... 2k on credit card.

Australia house prices a 385k outstanding homeloan is nothing. A 1bedroom apartment in my suburb cost $320k+

 

[Tui]

£400 for a sofa on 0% APR - I only keep the debt to improve my credit rating after the bank fucked up the closure of an account and it badly affected my credit rating which was difficult to recover as I didn’t have any debt at the time.

Christ knows how much in student loans. £20k+? I don’t even look as I’m already paying for it every month.

 

[under the ivy]

I owe £55 on my Very and about the same amount on my credit card. I’ll pay these off at the end of the month.

I used to be about £2k in debt on a store card that I got pressured into signing up and I thought it was great - I was a student at uni at the time and would be buying clothes all the time. I didn’t have the money to pay it off in full so the interest racked up... thankfully when I was working I set up a plan with them to pay off £100 each month and then I decided to pay it off in a lump sum. It’s affected my credit score quite bad (was around 4 years ago) so hoping it will get ‘erased’ after year 6 (think that’s the case)?

Eta; I’m about £45-50k in debt with my student loan which I haven’t paid off yet.

 

[Broken puzzle]

$0 credit card
Owe $40,000, on a house worth $325,000.
Car loan balance $2,000
Medical debt $10,000.
Job security weak. Husband was laid off one week this year already, at a place he has worked 30 years at.

 

[OnlyHereForTheLolz]

This year we really struggled with debt, my husband has a very well paid job but I was on maternity leave & we bought a new house before that. We failed to adjust our lifestyle & racked up some serious debt, credit cards, loans, leasing a car & other store finance. It was a very tough time & even after I returned to work part time, we never had enough money to make ends meet. Eventually I contacted step change, realising I was never getting anywhere paying the minimum amount. It was so bad they suggested I declared myself bankrupt.. which does put your house at risk so that was never an option. We both worked so hard to buy our house, we wanted to do everything & anything to protect the house. We reduced as many payments as possible & got rid of one of our cars which meant we could finally be accepted for the DMP. It has been a weight off, we actually feel like we can enjoy like again. When we worked it all out, it came to approx £43,000 for the both of us. We now pay £550 a month which means we can afford to pay our mortgage & bills. It’s still hard to budget because we live in an affluent area we do sometimes feel the pressure of keeping up with the neighbours. My husband will receive a dividend from his company at the end of the tax year & we hope we can then pay a lump sum off the debt. It’s really shit.. realllllyyyy shit but there is help out there. It does feel good to only buy things with our actual money now. The day we become debt free will be a good day!

Just keep in mind that when he gets a dividend he needs to keep some money aside for his self assessment tax bill! Lots of people get caught out by that. We get billed in January and July

 

[Zenchick101]

0 Debt and lots of savings thanks to my family mostly. It's a good thing because I'm struggling professionally

 

[Louisej3]

£4 to PLT?

I used klarna to buy clothes and owe 4 quid paid it off over 3 payments

 

[Monkeybum]

Aside from my mortgage, I've got about £15k in a bank loan racked up through a very leechy ex. In hindsight I was such a mug

But I start a new job on Monday with a good pay rise so I'm going to start overpaying whenever I can to pay it off sooner