How much debt are you in and what for?

[jkb]

About £370k of debt but assets worth much more.

 

[DarrenM343]

About £370k of debt but assets worth much more.

I was going to say something similar. Did OP mean loans or debt? I have three mortgages but the assets to cover them all so effectively zero debt.

Dunno in which scenario I would feel more comfortable at the moment. I've heard it mentioned that if we are indeed in trouble again those with a lot of savings with a bank might have a to contribute to bailouts/bank recapitalisation via a skim of funds over the £75k limit. I'm sure many would prefer it if we just let banks go bust meaning debts wouldn't have to be paid back .
Personally I think there's a lot of panicking at the moment and things being overdone as usual - meaning potentially some great investments around. However, as devaluation of the stock market is often followed by the same happening to house prices, those who have purchased property again recently at high levels (especially London) could be in a lot of trouble - even more so if the foreign investors hit trouble in their home land

 

[Broady21.pb]

0% I have no debt All of that is way behind me now. cold hard cash is what it's all about now. If I want it I save for it.

 

[Stretch]

Total around £400k, all mortgage debt.

 

[Meridian]

But you are in debt. You have a large charge on that asset, and you only realise that £300k when it's sold. Until then, it's a notional value, and that may change prior to selling. Enough people got caught in negative equity traps in the past when the value they thought they had in the house took a hit in a property crash. And who knows, we could have another one this year.

Besides, the mortgage has to be serviced, and paid monthly. If the house is an asset bringing in income allowing you to pay that monthly cost, like a buy-to-let, then looking at net monthly profit or loss on it, after all expenses and taxes, is fair enough. But until then, the value of the house could halve in the next year, but the mortgage won't, unless you've paid it off.

First of all, that's why I said "more complicated", not "wrong". Second of all it depends on how simplistic your economics is. You are trying to say my argument is wrong by pointing out what could go wrong. Of course my argument is wrong if house prices fall. But how often do they do that? And how long for? In the majority of cases, just waiting it out for five years (and most mortgages are twenty-five or more) will see you back on track. Of course if you have to sell up in that time you are in trouble. But again we are talking special cases, not the general rule.

As for the argument that an asset is only an asset if you sell it, you do know about double-entry book-keeping, right? Yes, I know your house is not a business asset, but the general principle remains the same. And unlike the majority of business assets, there's no write-off on a house. Unless you like in one of the really bad estates in the North anyway. But special circumstances again.

 

[Randomface74]

Just the mortgage.

 

[wnb]

About 79k mortgage and 3k on my cc which will be paid off at the end of the month as usual. The wife has 30k student loan to pay off, she was made redundant spent 3 years a uni and gets a job paying 10 grand less? I can't work it out.

 

[Em3bbs]

I'm sure many would prefer it if we just let banks go bust meaning debts wouldn't have to be paid back .

That's not how it works unfortunately.

 

[Jimbeam3678]

Me personally and debt?

Lets put it this way, no bank in this country will lend me a single penny.

I ripped them bad years ago.

No I did not go bankrupt.

So £0 debt £0 credit.

An IVA is nothing to be proud of:roll eyes: Assuming that is what you are talking about.

 

[eatcustard]

About 22k inc mortgage

 

[[HB]Rugrat]

Got about 30k left on my mortgage (8 years left), 11k on a car we just bought (2 years, 8 months left).

 

[Snookums]

At about £25k on my student loans now and still growing only to get bigger each year thanks to the Tories. Other than that it's just car insurance and phone contract could be them both off but I'd rather keep a lump to the side for a rainy day.

 

[Kris_90]

£27k left on my mortgage (9 years left), car is almost paid off and about £4k on credit cards which I'm working on paying off this year.

 

[Uhtred]

4k student loan (approx) £340 CC and a mortgage in the region of 140k but in healthy equity at the moment.

 

[vincent1989]

96k on the mortgage (28 years to go...), nothing else.

 

[Mattus]

£21,000 in 'debt' (student loan). I don't view it like a normal debt (at least whilst the interest rate is below savings rates) - it looks like an income tax and quacks like an income tax!

 

[Captain]

For those of you looking to check your credit scores, I would recommend www.clearscore.com which is a free service and provides some useful data on what sits in your credit file.

Just tried that, no record of my credit history

 

[SPG]

110k on the mortgage, 15 years

Nothing else, I plan to get massively in debt when I am in my 70s and blow it on hookers, viagra and Scotch and couldn't give a damm about the consequences.

 

[Mattus]

Any debt is too much!

There's nothing inherently wrong with being in debt, providing that it will make you better off in the long run and you are able to manage the repayments. Debt is just a tool to obtain the future value of money now (in exchange for a fee), and whether that's worthwhile depends on the situation. People see this intuitively in relation to a mortgage, but it's not really any different for other sorts of debt (including the national debt!)

 

[chaparral]

Nothing else, I plan to get massively in debt when I am in my 70s and blow it on hookers, viagra and Scotch and couldn't give a damm about the consequences.

And how do you think your going to get somewhere to lend you money when your in your 70's....