How much debt are you actually in?

[Avocadoontoast]

I feel so much better hearing everyone’s situation. I mean i wish everyone all the best in trying to get out of debt and pay everything off but I use to walk round Westfield in London looking at people walking around with shopping bags in hand looking carefree etc. Or even people with nice cars and big houses. I now realise/think that a lot of those people are probably sticking it all on credit/finance and just chipping away at it rather than paying the full amount up front. I’ve always grown up being told to only buys things I could pay for up front so the only thing me and my husband have a debt of is the mortgage of £280,00 on a £400,00 house. We paid for our car in cash and anything else we need/want or we do without. We are not rich at all, my husband has an income of £37,000 and I’m a stay at home mum with 3 kids. We are just super careful and frugal. We like the nice things in life but we save for them. We have a big 3 bed house opposite a beautiful park in Reading and have an Audi, but please don’t be jealous or think it came easy, we have worked so hard to save for the things we want and have made so many sacrifices for the important things.

 

[Be More Pacific]

My uncle’s a mortgage advisor and the amount of people he has to turn away because someone doesn’t admit to their partners etc. they are in serious debt is really high

Yep, I worked for a mortgage broker for ten years and one of our advisors had to go out early to an appointment after the husband called him to meet with him before his wife got there. He'd actually fathered a seven year child during a one night stand (before he met her) that his wife had no idea about. He had no contact with the child but he always hid his wageslips as the CSA were deducting their payments at source but obviously he had to come clean to our advisor. It absolutely crippled their affordability and they couldn't get a mortgage. Oh to be a fly on the wall as that one played out. I wonder if they are still married

 

[Noname12345]

I owe 6k on my car but I don’t see that as a debt as such. It’s a 4 year pcp agreement and I could just give it back in a year and be done with it. I won’t tho, I’ll swap it for another car I owe £100 on a student credit card I’ve had for about 10 years and pay £5 a month off it. Everything else is short term debt... like I have a next card and I will spend one month but pay the full balance off the next month.

Why won't you just pay off that 100?

 

[ChloChlo]

Thankyou so much to the two posters above. I'm definately going to look into this Stepchange and sort out my recklessness from a few years ago! Because it certainly isn't going to just go away!

 

[Northern northener]

2023 is going to be my debt free year . Currently owe £12000 on credit cards. I have £27k on mortgage which will be paid in 3 years if I do nothing. I am never going into debt again after that.

 

[Laur91]

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!

always admire people like yourselves - it’s such a ridiculous easy situation to get yourself into nowadays with credit so easily available! Sounds like you’re doing really well though, well done!

 

[GossipMongoose]

In my early 40’s. The only debt I do have is about £800 on my credit card but it’s ‘affordable’ debt and not something I worry about.

Mortgage is paid off
No loans
No store cards or catalogue credit agreements
I have an Overdraft facility but I’m *not using it.

I realise I am very fortunate to be in this position. My heart goes out to all those tattlers struggling with unmanageable financial difficulties

(*edited to add NOT)

 

[Cocopops91]

Why has someone reacted with a sick face because I've said that I've got no debt or mortgage?!

Hahahaha standard jealousy probably! Anytime I try and show someone the maths of why I rent and not buy (there’s a £300 a month difference as in cheaper to rent, before you add in any maintenance etc) they just don’t get it because they’ve been programmed that you’re a fail if you don’t own a home. I’m not going into the nitty gritty on here but I’m personally much better off renting than buying. Not the same for all I know but no one understands how it’s possible.
I’m with you, I don’t have debt because personally if I can’t afford to buy something outright then I don’t have it. Only thing I’ve had on finance is a £10k car, which I paid off within a year so I didn’t pay the interest on it.

 

[insta(sham)]

No debt apart from a large mortgage. About 340k outstanding on a house worth £650k. Am 31 years old. Currently on maternity leave and living off savings, when I go back to work I won’t have any personal savings, but about 8k in a joint savings account with husband. I guess I have around 1k disposable income once I have paid 60% of my salary into mine and my husbands joint account each month. Need to get much better at saving. I have had a lovely time buying pretty much whatever I want for the last 8 or so years.... big wedding, house renovation and several holidays. I use my credit card but always clear each month. Reading this has made me reialise how lucky I am and that I need to save more. I have definitely got better at buying less/ buying once and buying well. 2020 is the year that I am wanting to get this nailed. Would like to try for baby number 3 next Christmas and would like enough savings to be able to afford to take a full year off again.

 

[Avocadoontoast]

We’ve just bought a house so have a mortgage of around £280,000 - will be making over payments each month as we’ve always been doing.

No loans

No credit cards debt as we pay the balance in full each month

Nothing spend of the overdraft

No store cards

I am very conscious that I’m slightly addicted to shopping so I have to be extra vigilant about my spending habbits. The Minimalists have helped so much in this department. They have helped me focus on what’s important in life - not things! Me and my husband would like our house paid off before we’re old!

 

[muffintop13]

Step Change have been an absolute godsend to me. I’m now in a DMP with them after spending many years paying off my debts on time but being broke every single month. It was totally against my nature to not pay things and do this but it’s ended up meaning I’m able to survive without living on credit month to month. I totally recommend it to anyone struggling.

 

[flamingo29]

I’ve just spent the last 2 years paying off £10k of credit card/next debt and it has been a long and tough road, the relief now to finally be free of it has been worth it all. I have nothing to show for any of that debt, just stupid spending when I was younger, always ending each month with just pennies in my account etc

The only advice I have is that I tracked every penny on spreadsheets each month and gave myself budgets for everything, it almost became a game against myself to try and keep my bank balance over a certain value by the end of each month and i’d be gutted if it went under the value

 

[midnightrose]

Age 33
Overdraft £1100
Credit cards £7300
Car finance £15700

no mortgage BUT got £23000 in saving for house deposit and currently being processed for a mortgage of £360k

so not all debt is against you

Be interested in your household income. You’ve got more debts than I have, and I don’t think my partner and I would get accepted on a mortgage that high xx

 

[ciaoadiosimdone]

My ex was totally toxic and left me in the shit with money when we split up. I have ended up paying back a loan he took out and other debts he had racked up, by myself. There is only a couple more payments to go until I am free of it and I can’t wait. I now have a small overdraft which I have reduced massively over the years. It used to be massive when with him, I would barely manage to get out of it each month but now it’s so small and manageable. I have one credit card 0% interest with about £200 on it which I plan to pay off once Jan payday comes. No mortgage yet but I have savings and hopeful to get on the ladder in 2020. I have my student debt too but I don’t see this as am paying back directly from my salary and have been since I graduated years ago.

 

[hlgray]

Ladies, thank you for this thread. It makes me feel so much better knowing that there are other people in similar positions.

I earn about £1,500 a month. I am living in my overdraft of £1,250 (I have been for 10 years now after getting into it when I was a student), £500 on my credit card and £100 on my next account. Plus small student loan, mortgage and then car. I don’t count the last three as I see them as acceptable debts, if that makes sense?

This is the year I get my shit together though. I turn 30 this month and do not want another year (or ten!) living in my overdraft. By Hogmanay this year my overdraft, credit card and next account will be cleared.

 

[megsmagoo]

This thread has been an eye opener for me. I’m in a terrible situation at the moment, I’m I’m about £8000 of debt at 23 years old. Was very stupid with money when I got my first “proper” job and took out payday loans, credit cards etc. It just spiralled and spiralled and got even worse when I had a bereavement In my family last year. I live in constant fear every single day, to the point where I can never relax because I’m so scared. I’m scared when somebody knocks on the door, when letters come through my door, when the phone rings. And the worst thing about it is in I work in finance and would lose my job if I got a CCJ or anything along those lines. I just don’t know what to do but I know I need to something before it gets a whole lot worse.



i feel like I’ve ruined my life before it’s even begun. my friends around me are buying their first house etc and I don’t feel like I’ll ever have that. It’s soul destroying to say the least

Please please speak to step change, you won’t get a ccj and typically don’t pay interest while you’re in their care

I can’t tell you the relief I felt when I spoke to them. I was on the verge of suicide because I didn’t speak to anyone about it and couldn’t see an end because of the shame. I said this earlier but they really saved my life

 

[Lovegin]

I have quite a bit of debt, I’m using a dmp with StepChange I’m paying £750 a month and will be debt free in Jan 2023

 

[ChloChlo]

At least 30k.

These are all various catalogues I ripped off years ago when I didn't care. Old phone bills following me around. Various loans.

I am also 36 and have never paid a gas/electric bill in my life, I wont even open what is sent, last time I ever opened one it was 4k.

I wish I could sort all this shit out, but wouldnt know where to start.

 

[Be More Pacific]

Age 33
Overdraft £1100
Credit cards £7300
Car finance £15700

no mortgage BUT got £23000 in saving for house deposit and currently being processed for a mortgage of £360k

so not all debt is against you

Whilst it doesn't necessarily go 'against' you, debt will always impact on your affordability when applying for a mortgage. Some lenders, even if you have credit cards with zero balances, will take the credit limits into account in their affordability calculations - the reasoning being they could approve the mortgage then you could go and run up those credit limits the next day.

You (and/or your partner) must earn a serious amount of money to getting a mortgage of £360,000 in the first place.

 

[Rosalind96]

26 single mum to a 2 year old.
Owe about 65k in student loans which I will never be able to repay- did a PGCE and now I’m doing a masters.
Will soon have a house deposit saved only due to my ex’s fam giving us a 5% deposit for our first house, 4 years ago. Made money in the sale so will still have a deposit left after my divorce.
Own a car outright only because his fam bought it for him and then he gave it to me when they bought him a new one.
Not in any other debt because my mum has been helping me out with solicitor’s fees and things for my little boy.
Basically, I’m immensely privileged and well aware that someone else, who had worked just as hard as me, could be in thousands of pounds of debt just through the misfortune of having no family who are able to help them.