No More Debts - Feeling Liberated !!!!
Discussion
I remember when we used to take out small loans and counting the years to have it paid off.I always hated debt, of course we had our mortgage which always takes forever.We have been debt free for years just lucky that we don't have to go into debt.
We help our daughter now with loans interest free.>)
We help our daughter now with loans interest free.>)
After being in nearly £10000 worth of debt for 10 years, i paid it all off when i got made redundant from my old job.
It's a nice feeling. I recently bought a car with cash (rather than finance) and had more confidence to offer what i thought the car was worth and go elsewhere if necessary.
It's a nice feeling. I recently bought a car with cash (rather than finance) and had more confidence to offer what i thought the car was worth and go elsewhere if necessary.
H22observer said:
After being in nearly £10000 worth of debt for 10 years.
Less than £20 a week? Hardly a worrisome level of debt I would have thought.I've was debt-free & smug for 10 years and then a work client went pop leaving me in the red. Was simply vile, took a year to clear the debt. I know folks at work who have had the debt equivalent of 2yrs income. Just nuts.
MrOrange said:
H22observer said:
After being in nearly £10000 worth of debt for 10 years.
Less than £20 a week? Hardly a worrisome level of debt I would have thought.I've was debt-free & smug for 10 years and then a work client went pop leaving me in the red. Was simply vile, took a year to clear the debt. I know folks at work who have had the debt equivalent of 2yrs income. Just nuts.
t if I'm £1000 in debt... I would say £10000 is quite a worrisome amount!If you don't find £10000 worrisome then... You should worry
MrOrange said:
Meh 
Each to their own, I suppose. A grand a year of debt is low compared to the average and is just £20 a week, that's a sarnie & a latte for lunch.
Debt's a necessary evil for most (mortgage, car on finance, credit cards etc), very few folks have no debt at all.
Very much a response of this place. A 10k loan for anything other than a mortgage is a decent stretch for rather a lot of people and if you can get a personal loan for around 80 - 100 quid a month for that sum, you're doing ok.Each to their own, I suppose. A grand a year of debt is low compared to the average and is just £20 a week, that's a sarnie & a latte for lunch.
Debt's a necessary evil for most (mortgage, car on finance, credit cards etc), very few folks have no debt at all.
jimbop1 said:
Are you for real? I feel st if I'm £1000 in debt... I would say £10000 is quite a worrisome amount!
If you don't find £10000 worrisome then... You should worry
Well said. t if I'm £1000 in debt... I would say £10000 is quite a worrisome amount!If you don't find £10000 worrisome then... You should worry
If you're on an average wage (£1600-1700 per month after tax), £10000 debt is large if you have no assets.
Calling it "£20 a week" is trivialising it. That doesn't include compound interest over 10 years.
MrOrange said:
Meh
Each to their own, I suppose. A grand a year of debt is low compared to the average and is just £20 a week, that's a sarnie & a latte for lunch.
You're trivialising it. It's not a grand a year. It's £10000 at a personal loan rate of 6-7%. £20 a week will cover the interest in year 1 still leave you with over £9500 debt in year 2.Each to their own, I suppose. A grand a year of debt is low compared to the average and is just £20 a week, that's a sarnie & a latte for lunch.
I can say from personal experience that such debt is very worrying at the time if you're paying £8000 per year rent to a landlord in the private sector.
£10000 debt might be buttons to somebody who pays 40% income tax, but for normal people it absolutely is not.
H22observer said:
£10000 debt might be buttons to somebody who pays 40% income tax, but for normal people it absolutely is not.
That's the key to it. It just comparing your expenditure run-rate to your earnings. The absolute amount of debt is irrelevant. A million to some people in very high earning situations might seem very normal, yet much smaller amounts might be stressful for someone with modest earnings and dependents. No matter what the actual original amount, the relief of having zero is well worth it.RDMcG said:
That's the key to it. It just comparing your expenditure run-rate to your earnings. The absolute amount of debt is irrelevant. A million to some people in very high earning situations might seem very normal, yet much smaller amounts might be stressful for someone with modest earnings and dependents. No matter what the actual original amount, the relief of having zero is well worth it.
Exactly. A friend of mine is a uni graduate. I think at one point he had £23000 of unsecured debts and a student loan. His salary was £16000 up until recently. He used to worry about it a lot.
I can't even imagine what that must be like. His monthly takehome pay was roughly 1/20 of what he owed to the banks.
I hate debt and only have my mortgage as debt which is great. I used to buy a new car and top up with a loan to buy it, but my current car I paid cash.
I do use my credit card to help keep my credit rating up , but pay it off immediately and most of the time in advance.
It is nice not to have a big sum going out each month for a loan.
I do use my credit card to help keep my credit rating up , but pay it off immediately and most of the time in advance.
It is nice not to have a big sum going out each month for a loan.
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