Are you completely debt free?

Satts

If you have a mortgage but you are in positive equity, are you still in debt ?

I'm debt free; no loans, mortgage or credit card debt thankfully.

Eric Cartman

Eric Cartman wrote: »

.............

AH is not a representation of most of the country.

thank feck for that

Frank Black

I've always tried to keep my money affairs in order so that I'll be in a sound financial position to pay for the debts of my less frugally minded fellow citizens.

iguana

Rayden Rotten Music wrote: »

I'm not a fan of this smug 'I live within my means, so I have no debts' mentality. There are plenty of reasons why someone who's responsible with money can still be in debt. Like the majority of UK students, I needed to take out a loan to go to university.

It's not smug, it's just how some people choose to live. Not having debts involves making sacrifices, people shouldn't be made to feel like they are doing something wrong or as if they should hide it for fear of people who didn't make those sacrifices, lest they be labelled smug. In fact if people had heard a lot more from those who avoided debt perhaps it would have encouraged them to avoid it too and the economy would never have boiled over.

I paid for college when I was a student. I took a year off after school and worked full-time saving as much as possible. In college I worked 25-30 hours a week during term time and full-time during breaks. In my final year I only worked weekends and holidays in order to have more time to study so I borrowed a couple of thousand to cover my last term's tuition. As soon as I graduated I took a job in a factory working 80+ hours a week on a swing shift so I could pay back everything I owed and stash away a pile of savings that could see me through a couple of years of working for very little/free in order to gain experience in my field and have money to cover any emergencies that cropped up.

If people take debt on that's a choice they make, but where does anyone get off on insulting people who choose differently and calling them smug?

Mike 1972

Satts wrote: »

If you have a mortgage but you are in positive equity, are you still in debt ?

:rolleyes: Sure you are just stop paying the mortgage now and come back to us in a few months and let us know how youre getting on.

DazMarz

I'm 23 and renting. No mortgage. No loans of any kind. Might owe a few quid off my credit card, but I pay that in full every month, so I never build up interest. No overdraft.

In fact, I'm owed money from a few people. It probably amounts to about 3 grand or so, which ain't pretty, but that's life.

Satts

Satts wrote: »

If you have a mortgage but you are in positive equity, are you still in debt ?

Mike 1972 wrote: »

:rolleyes: Sure you are just stop paying the mortgage now and come back to us in a few months and let us know how youre getting on.

Good point. If I don't make all the repayments including the final one, I could loose my house.

But because the value of the mortgage is about 25% of the current house value, I don't 'feel' in debt.

I am indebted to the bank for the remainder of the mortgage but am I 'in debt' considering my assets far outweigh my debts ?

* The way I 'feel' about my mortgage may change if I were to loose my job.*

mikeyboy

Have about €1500 on credit card but won't be getting any more as I have cancelled it so once that's cleared I'm good

Mike 1972

Satts wrote: »

But because the value of the mortgage is about 25% of the current house value, I don't 'feel' in debt.

How you feel is pretty irrelevant you are in debt.

First off no matter how much you think your house is worth it's still a house not a pile of cash. Even if you decided to sell it tomorrow and clear the mortgage its not something you could do overnight, Its going to take you (best case scenario) at least a couple of months and carry all manner of additional costs oh and there is also the little problem of then needing someplace new to live.

Secondly a debt is still a debt even if you have the means to repay it immediately. If Mike 1972 owes Satts a tenner the fact that Mike 1972 happens to have 40 quid in his wallet doesnt make Mike 1972 any less indebted to Satts.

Granted you may be in a much better position than someone in negative equity and/or (because theyre not the same thing) struggling to meet their monthly payments but you are still in debt nonetheless.

Wibbs

Rayden Rotten Music wrote: »

I'm not a fan of this smug 'I live within my means, so I have no debts' mentality. There are plenty of reasons why someone who's responsible with money can still be in debt. Like the majority of UK students, I needed to take out a loan to go to university. That gets automatically taken out of my pay cheque every month. I also have a few hundred on my credit card for emergency dental treatment I needed last month. I don't earn a lot, I already save every penny I can, already buy almost everything second-hand. I've never had state handouts for anything. I'm as responsible with money as anyone else, I just haven't been as lucky as some. My boyfriend is much more frivolous and has spent ridiculous amounts on ridiculous things, but he went to college for free and lived at home for a few years afterwards.

Oh I agree 100% IW, but there is or should be a balance and middle ground. I would be thinking more of those who bought into the banks/financial sectors bullshít of "free money", free money that swelled the banks coffers on the backs of uniformed people never quite out of debt, paying out overinflated dividends to the banks for years if not life when they overstretched themselves. Something the banks were only too happy to promote and why wouldn't they? Build enough of a debt and they have you for life with little investment from them, but punitive interest that outweighs the initial loan. Talk about a good investment.

The consumer society has been fed a pup and a large dollop of bullshít. Think about it, people will spend more on a tee shirt or jacket or whatever that has some company logo writ large, compared to same without. They pay extra to advertise someone elses company and profit margin for free. A generation(or two) of free walking billboards. The financial sector is not dissimilar with their "free" credit/money. And trust me I'm no hippie, but I hate someone pissing on my head and being told that it's raining. If this "recession" teaches us anything it should teach us that difference.

Satts

Mike 1972 wrote: »

How you feel is pretty irrelevant you are in debt.

Ok, instead of saying I don't 'feel' in debt, I should be saying "I have a debt but I also have positive net worth".

How I 'feel' about my positive net worth may be irrelevent to you but I am signing off now to have a sleep that is just as good as the sleep of someone who is debt free.

Mike 1972 wrote: »

If Mike 1972 owes Satts a tenner the fact that Mike 1972 happens to have 40 quid in his wallet doesnt make Mike 1972 any less indebted to Satts.

Any chance of that tenner back, I'm a bit stuck this month ?

foodie66

Just a couple of hundred on my credit card , will pay that off this week.

Compared to others i am very sensible with money but even still i kick myself when i think of the money i spent on needless things back in the day. I certainly didn't go crazy but things like having 2 dresses for 50/60 euro each that i've never worn - i could have that in the bank!

That said, i didn't just buy things like that for the hell of it, i really wanted them at the time and thought about it hard. Even back in the so called boom time i could never just throw away 100 euro on a jacket or boots like some friends.

I've a decent amount of savings that would ensure i wouldn't starve for a while so i'm pretty fortunate. I never had much growing up so it's not that big a deal watching my money now. I do sometimes look around at neighbours and friends my age who were able to build big houses and have 2 fancy cars on the road, be in normal enough jobs and have kids and social lives, and wonder how they were managing it, and most of them still seem to be living decently.

I must be going wrong somewhere!

coolx

Lots of debt

Davidson2k9

6k debt from my car. I'm 20

SpannerMonkey

Im 27 no mortgage Up to recently I owed about 30000 between loans and credit cards , I bust myself to clear as much as possible for last year and a bit and I currently owe nothing <200 on credit card and about 3000 on a loan , so I am very happy to be honest ,

I was stupid with money during the good times very stupid over 50 k in total , never again , lesson I suppose , if I could go back I would slap the ****e out of myself

Schapiro

Hovering around $103,000 student loan debt. From undergraduate alone.
That's with $70,000 in scholarships, and $5,000 in grants.
I'm 23, have never had a credit card, always lived with my parents, work about 30 hours a week and attend classes full time. All my cheques are put into paying back this debt, supplies, transportation, and helping my parents out with things.

A future? My own place? What are those? :pac:

oldyouth

After 25 years, I have a small balance on my mortgage. I could clear it today, but it is manageable and I would rather have the savings.

44leto

I now have a completely different attitude to borrowing. I use to regard getting credit for anything I wanted as routine, as normal as everyone did it.

Now I save and do without till I have the money. Something amazing happened. I like everyone else have bought a lot of credit crap over the years, now I have become less impulsive and I find I really don't need or want all the things I desire.

I am now in the process of buying a car, I need one, its second hand, a year old and I have been saving for the last six months for one. I will pay cash and I may have change, I am dead chuffed that I didn't have to borrow.

i have a couple hundred on the cc, far outweighed by savings
nothing else
generally clear the cc every month

Snakeblood

I have no debt and no cash, I blew my savings getting rid of an apartment I bought in 2007. Oh well. I'm happy enough with it.

denhaagenite

Mortgage is the only money I've ever owed. I've never had a credit card limit more than I can afford to pay off in one paycheck, the one I have now is a pay as you go one.

I'm appalled by some people's attitude to borrowing. When Ireland beat Estonia, there was a headline on Breaking News quoted from some w**ker who said "Ireland should recapitalise the Credit Unions so that we can all go to Euro 2012"- if you have to get a loan to go, then you should be watching it in the pub. The weddings forum here is full of people who get loans for engagement rings and weddings- either save or compromise. Personal finance ads on TV with small print of 4763% APR, who the hell actually avails of these??

If I owed as much as some people we know for things like furniture, weddings, holidays etc, all discretionary, I wouldn't be able to sleep. I might not have the most interesting life in the world but enjoying the simpler things in life is vastly underrated imo.

neilthefunkeone

2k loan.. No credit card, no savings and no assets bar a 12 year old car..

Living the dream!!

No1J

As this is the most popular answer, I was wondering is it because people just haven't bothered/cant afford to get their own place or are all the boardies just doing well for them selves.

options
1. no mortgage, no property, no debt.:)

2. no mortgage, payed off, no debt.:D

Duke Leonal Felmet

I owe about 6000, however, that was solely for my college education, and I now have a good job thanks to that. So I don't mind.

Wibbs

Number 2 for me.

LeeHoffmann

No. 1 for me.

I'm young-ish (27), haven't bought a house, the economy crashed just as I got out of college, I've some savings but a good chunk of those will be used to fund our wedding and travelling round the world in the next couple of years. I hope to have nearly enough left over to constitute a deposit for a house whenever we decide to buy one. I've had a few small debts at various times. The largest sum I've ever owed was €5k and I paid it back within 5 months. If I don't have the money, I go without. This has meant that I've lived on as little as €1.50 per day (that sum includes all food, transport, groceries - everything except rent & electricity in other words). Here's the important point to note though - I have no kids.

Shenshen

IvaBigWun wrote: »

It seems everyone is in some kind of debt these days.


Apart from my mortgage Im not too bad, about 800 euros owed on a credit card.

Are you completely debt free? Poll to follow.

Apart from our mortgage, yes.

I never had another loan in my life, and I don't have a credit card.

30Min

Im in debt, but its not my fault !!


I bought a house for a million squid during the boom. Now its only worth half that and the bank has the cheek to tell me they wont accept the offer I got for 500k and leave me off the rest !!

Yahew

No1J wrote: »

As this is the most popular answer, I was wondering is it because people just haven't bothered/cant afford to get their own place or are all the boardies just doing well for them selves.

options
1. no mortgage, no property, no debt.:)

2. no mortgage, payed off, no debt.:D

Very few people could be in the latter position given the age profile of boards.

No1J

No1J wrote: »

As this is the most popular answer, I was wondering is it because people just haven't bothered/cant afford to get their own place or are all the boardies just doing well for them selves.

options
1. no mortgage, no property, no debt.:)

2. no mortgage, payed off, no debt.:D

Not everyone is obsessed with owning property
I don't want my own place - maybe some day I will buy

cherryghost

Don't have a mortgage nor am I in debt; I just keep struggling along

foxyboxer

No debt. At all.

TerrorFirmer

No debt and decent savings, but renting at the moment. But, finished college and all that, never took out loans or took money from my parents, I don't really believe in spending money you don't have with the exception of a mortgage, obviously. Don't have a CC, actually, either.

No1J

Yahew wrote: »

Very few people could be in the latter position given the age profile of boards.

I was thinking that but there are quite a lot of young people working for the likes of Google, Intel, HP, etc well paid job, not to mention the more traditional professional jobs.
The average industrial wage is around 35k and an apartment in the Dublin area can be bought for around €120,000, 3 bed semi €200,000 hasn't been a better time to buy for 20 years, people on good money could have it paid off on a short term loan.

mojesius

I owe a few hundred on the credit card, that's about it. 2 years ago, I had the leftovers of about 5 loans left, niggling away. It's great to be clear of them finally.

RichieC

Owe nout but an electricity bill.

No1J

No1J wrote: »

............. €200,000 hasn't been a better time to buy for 20 years, people on good money could have it paid off on a short term loan.

You'd want to be on very good money to pay off the guts of €200,000 on a short term loan.

moco

denhaagenite wrote: »

Mortgage is the only money I've ever owed. I've never had a credit card limit more than I can afford to pay off in one paycheck, the one I have now is a pay as you go one.

I'm appalled by some people's attitude to borrowing. When Ireland beat Estonia, there was a headline on Breaking News quoted from some w**ker who said "Ireland should recapitalise the Credit Unions so that we can all go to Euro 2012"- if you have to get a loan to go, then you should be watching it in the pub. The weddings forum here is full of people who get loans for engagement rings and weddings- either save or compromise. Personal finance ads on TV with small print of 4763% APR, who the hell actually avails of these??

If I owed as much as some people we know for things like furniture, weddings, holidays etc, all discretionary, I wouldn't be able to sleep. I might not have the most interesting life in the world but enjoying the simpler things in life is vastly underrated imo.

Most of these have a limit of 31 days to pay back, so it's not as bad as it looks. For some people in the UK anyway, with our massive bank charges for being overdrawn, it's cheaper to get a loan for a few days than have a direct debit returned unpaid.

PrincessLola

No debt:)

No savings either

TonyM.

No dept the house is paid for I made three hundred morguage payments through some very bad times I never really felt it was mine until I got my hands on the deeds.

iguana

No1J wrote: »

hasn't been a better time to buy for 20 years,

Huh? I guarantee that in 1991 houses were still a hell of a lot cheaper compared to salaries and it was a much, much better time to buy than it is now.

iguana

iguana wrote: »

Huh? I guarantee that in 1991 houses were still a hell of a lot cheaper compared to salaries and it was a much, much better time to buy than it is now.

The benefit of hindsight.

ThinkAboutIt

I'm confused on this one.
Judging by the poll not that many are struggling or in debt.
But then the Government are bashed at every chance on AHers and everyone moans about the budgets cuts.
Both things don't go together in my view.

foxyboxer

It's like good and bad experiences.
You're more likely to post about negative experiences.

You're more likely to see threads like.

"Budget 2012 - Now we're screwed" with replies in support of it.

as opposed to

"Just to let AH know, I've no debt" lest you get labelled a smug baxtard.

Yahew

No1J wrote: »

I was thinking that but there are quite a lot of young people working for the likes of Google, Intel, HP, etc well paid job, not to mention the more traditional professional jobs.
The average industrial wage is around 35k and an apartment in the Dublin area can be bought for around €120,000, 3 bed semi €200,000 hasn't been a better time to buy for 20 years, people on good money could have it paid off on a short term loan.

WEll, there is some logic there, but people in their twenties with good jobs working in Dublin were more likely to buy in the boom ( prices rising next year!!! Get in now!) than now as everybody is waiting for the bottom.

I think buying now will mean you won't be in negative equity in 20 years. It might be hard to get credit though, even on a good paying job.

foxyboxer

Yahew wrote: »

WEll, there is some logic there, but people in their twenties with good jobs working in Dublin were more likely to buy in the boom ( prices rising next year!!! Get in now!) than now as everybody is waiting for the bottom.

I think buying now will mean you won't be in negative equity in 20 years. It might be hard to get credit though, even on a good paying job.

It's classic trend following.
Why buy when the prices are falling "..catching a fallen knife" and possibly likely to continue falling.

When you see a sustained price rise on a monthly basis, then those with "gun powder" are more likely to buy.

This is the inverse of the boom, when on seeing prices rise at circa 3k per month, people began to invest.

EL_Loco

Just the mortgage, and the bills to keep a gaff in light, heat, computer and internet. Those are not in order of importance.

Al Capwned

Am I debt free?

I am.

In me hole.....

Vicxas

Im about 8k in debt, mostly off credit card and car loan i took out in the boom era. Wish i didnt