How much debt you in ?

[Herr Tubthumper]

As with everyone who returns home, family. Father was ill. Also was DJ'ing out in Spain and got too old (at 45).

Fair enough. Family I understand…..but Carl Cox is now 60.

 

[mikeyjh]

There's an assumption isn't there that people in debt are in debt because they're shit with money or they like a gamble or whatever.

I don't have the data but I'd wager the vast majority of people in debt are in out of necessity rather than recklessness.

Definitely - I would add that the latter would describe those most in need, those that are in debt because they're trying to feed their family and heat their homes. This will be the vast majority you speak of.

At the other extreme, there's middle class debt, those that want their shiny new cars, multiple holidays AND to progress up the 'property ladder'.

 

[Icy Gull]

45k left on the mortgage which no matter which way you look at it, is debt.
That should be paid off 2/3 years, we have money saved for daughters education which is over probably 3-4 times more than we have left on the mortgage, so she should be sorted (hopefully).

I do not use credit cards, or an overdraft and have not since my dark days and paid them all off.
The wife does put the certain things on a credit card like as others have said the holidays and she pays them off after we have been, she has taken a credit card out in my name for holiday, only because most car hire places need one in the drivers name when you go abroad.

I hated debt, I feel for anyone in it.

What is she doing that is going to cost you 130 to 200k.

 

[swindonseagull]

No mortgage
No loans
One credit card for fuel ( company pays most ) probably owe £200
Full military pension
Good salary

Doing OK

 

[dazzer6666]

Not easy for sure. You really have to be determined to make a new life for yourself to do this. And fill it with a lot of other things, Otherwise retirement would be a long time to be bored

Must be a tricky balance. Got pals who moved lock stock and barrel to Spain but didn’t last long - mostly missed grandkids and golf……ended up coming back but buying a holiday home there so a compromise (and they get to play golf in the warm during the winter)

 

[mikeyjh]

45k left on the mortgage which no matter which way you look at it, is debt.
That should be paid off 2/3 years, we have money saved for daughters education which is over probably 3-4 times more than we have left on the mortgage, so she should be sorted (hopefully).

I do not use credit cards, or an overdraft and have not since my dark days and paid them all off.
The wife does put the certain things on a credit card like as others have said the holidays and she pays them off after we have been, she has taken a credit card out in my name for holiday, only because most car hire places need one in the drivers name when you go abroad.

I hated debt, I feel for anyone in it.

I did, it's horrible. It's odd, I never had 'expensive' tastes, I was just living beyond my means. My saviour was my salary going up and my spending habits not really changing. I do worry when I see kids and teenagers today getting, almost literally, everything they desire, holidays of their dreams and then will want to be buying a house as soon as - I think there's a lot of talk of 'our' generation and how buying houses was easy, it wasn't, people made a lot of sacrifices 20/30 years ago and I'm not sure young people today truly understand that most people have to do that....

 

[dazzer6666]

At the other extreme, there's middle class debt, those that want their shiny new cars, multiple holidays AND to progress up the 'property ladder'.

This describes a very high proportion of the people I worked with……..hence most of them are still working and I was able to comfortably bail at 54, debt free and just ahead of pension freedom time. We overpaid on our mortgage (modest house we stretched ourselves to buy 25 years ago) for years so cleared about 10 years early that when I was 46, which meant several years of excess income over expenditure, which in turn allowed us to save quite a bit…….and hence stop work early.

The somewhat competitive need to have the best (new) car and the biggest house never really appealed. Not working is massively more fun.

 

[Weststander]

Do you know what the average personal pension provision is? Do people have personal pension pots?
And what is the average level of savings?
These four stats seem to sit together to give us a decent picture of what might be coming down the road for us all. I worry about a generation relying on building up equity in their potentially lower value home, already with debt and no pension provision. How the feck are we going to support everyone?

Googling reliable sauces:

Median average is the best measure of savings, because a minority of households have vast wealth in ISA’s which would give a high mean. £12,500 is the median savings per household, £25,000 at age 65.

Pension provision is very disparate, but I’ve found the following.

Occupational pension scheme income median is £10,300 per annum. [7.3m out of 11m pension age folk]
Private pension scheme income median is £9,700 per annum. [8.1m out of 11m pension age folk]
Note the overlap, many have both.

Plus state pensions for a couple with full NIC histories in 2023/24 will amount to £21,200.

The UK has higher occupational and private pension provision than many other countries, it’s a tradition. Whilst others are dependent on high taxation now to pay today’s pensioners.
Some interesting stats here, “adequacy” is the key metric.
https://www.visualcapitalist.com/ranked-the-best-and-worst-pension-plans-by-country/

Behind these numbers, 2m UK pensioners live in poverty.

 

[Herr Tubthumper]

Not easy for sure. You really have to be determined to make a new life for yourself to do this. And fill it with a lot of other things, Otherwise retirement would be a long time to be bored

Never say never buy I can’t see myself going back to the UK. I have lived away for a long time now and I’m not sure I fit in any more.

 

[Weststander]

Never say never buy I can’t see myself going back to the UK. I have lived away for a long time now and I’m not sure I fit in any more.

I love continental Europe, I particularly find the Nordic nations, Germany and Austria interesting.

Not slagging off the UK here …. but I don’t blame you one bit. Berlin, Munich and many others are great cities.

 

[papachris]

Thanks.

I imagine there are a lot of people going under right now and I bounced the thread to show that there is hope after a few years.

To illustrate, 16 years later my £59K debt is now 'only' £6600.

Well done! From my experience over a period of time by paying my mortgage and property prices going up it put me in a stronger position than when I used to pay rent but got nothing in return, the money just goes into a black hole

 

[ChickenBaltiPie]

I’m very sensible with my money. Worked my balls off to settle my student loan by 25 and maximise the amount I could borrow on my mortgage, which is huge admittedly but means I live in a lovely house that ultimately if not presently will appreciate more than anywhere smaller. (The size of my mortgage does scare me sometimes, but that’s the calculated gamble I took.)

I use 0% credit cards frequently however to spread the cost of what I consider sensible/home improvement things. Just had fitted furniture throughout the house/shutters for example (all of which add value to my home) but the way I figure I could spend a couple of years saving and then spending or spend and then spread and enjoy these things now rather later.

Mortgage just went up to 2.5k a month (which I cover alone) plus the cost of gas & electric going through the roof so I am presently debt free and won’t be borrowing anything anytime soon. Just gotta be sensible and measured and only borrow what you can afford and there’s no harm in borrowing for the right reasons.

I have never paid any notable amount of interest on anything other than my mortgage. It would drive me insane to hand over my hard earned money to pay for interest like some of my buddies do. I hope to avoid ever ending up in that position.

I use credit cards day to day almost exclusively to earn miles & cashback, increased purchase protection and to maintain a strong credit history, but always pay the balance each month by DD.

The one key mantra I’ve always lived by above all else is balance and moderation and I’ve done OK.

 

[mejonaNO12 aka riskit]

I've got £266k left on the mortgage but I've been listening to some older folks that know their onions and I've decided to cancel Netflix so I can repay the mortgage in no time at all.

 

[Garry Nelson's Left Foot]

Did it magically disappear? Asking for a friend.

I don't know, I'm still out of the country!

It's been over 20 years so it should have done.

 

[spongy]

Morning squire. Were you the bloke is a tizz a couple of years ago because a mortgage looked like an impossibility? If so - congrats - happy for you! If not, sorry for mixing you up with someone else.,

Sure was

Happily mortgaged now thanks to @Uncle Spielberg

Only 27 years to go

 

[Insel affe]

What is she doing that is going to cost you 130 to 200k.

She is probably going too either Plymouth or America to study, that should ! cover it and housing etc.
We did not want to be hassled with extra payments once the mortgage is done, we should be able to downsize and both get part time jobs and enjoy our late 50s early 60s.

That is the plan anyway, we need to do stuff to the house, it is looking tired after bringing up a child, but I am inclined to leave it, and just sell when she leaves. The new owners will want to put there stamp on it anyway, I never understand folk that do up a house to their taste and then sell it.

Personally I don't have more than a couple of grand in the bank, it is all in the joint account and tide up as I say.

But I would never loan or get another credit card for personal use, I simply can't be trusted and would buy shit I don't need or worse still go back to big time gambling. I worked hard to clear the debt I did accrue, and regain the trust of the wife, the pain and agony, angst and feeling totally trapped has never left me, and I never want to go back there.

 

[timbha]

A word of warning - down sizing might in theory look like the perfect solution to a debt free/comfortable retirement but it’s not always easy to find the right place at the right time. It’s surprising how emotionally attached you get to where you live and how many things go on your list of “must haves” - off road parking, garden, spare bedroom, not at top of hill, shops, buses, near family, etc. plus the cost of moving.

 

[ChickenBaltiPie]

Thanks.

I imagine there are a lot of people going under right now and I bounced the thread to show that there is hope after a few years.

To illustrate, 16 years later my £59K debt is now 'only' £6600.

Well done chap! Impressive! How on earth you’ve achieved that though is beyond me. Remarkable! New you is as smart as old you is dumb for getting into that situation in the first place. Could easily have been me or anyone else at what I’m assuming was a young/naive age. Well done.

 

[worthingseagull123]

About £1,500 on my credit card which I’ll clear on payday.

 

[jackanada]

No debt but everything I own is falling apart.