In debt, but by how much?

outside our mortgage between me and the wife i'd say about 33k, most of that is due to our new house being a wreck and having to spend a damn sight more than we thought to do it up but it's lookin nice now :D
 
just been working it out actually - end of the year i should own nowt bar 3k student loan and a huge ass bill to the tax man (except thats all in savings.... i really should sort it out tbh..)
 
zero pounds and zero pence!
i'm in my final year of uni - managed to scrape by on what my part time job paid me - but i'm looking forward to stacking up the debt when we start looking at houses in the summer :D
 
Dolph said:
I'd disagree with IVA's, they aren't the best way for a lot of people...

http://news.bbc.co.uk/1/hi/programmes/moneybox/4907968.stm

http://news.bbc.co.uk/1/hi/business/6109330.stm

An IVA is also a public declaration of insolvency, and certainly does ruin your credit record.
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If you're in the situation that you need to declare an IVA then you shouldn't be getting credit anyway - so that's probably a good thing.

And after 6 years it's back to business and you can start to rebuild your credit - which if you know how to, isn't that hard. With up to 75% of the debt written off. A public declaration of insolvency is far better than losing your home which is the situation some people are faced with. IVA's are perfect for some people and not for others. There's no right or wrong about it.
 
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No current debt after selling my old house - bridging 2 mortgages is ruinous ;)

Do have a very large mortgage on the new house tho' :( Still, at least I can sleep at night knowing that at least one person out there cares about me (i..e the bank!)
 
Currently have a student loan totalling £4600 when i finish my course will probably top out at £16,000 i dont really count that as a debt like fox said its free money and you only pay it back when your earning, but apart from that no debt for me.

thedazman
 
The Mad Rapper said:
Which is fine in theory. However, equity is a chaotic entity, and if the market crashes (as I hope it does - houses are incredibly overpriced), then you'll be buggered.
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Why?
Does house prices crashing have the added effect that I can no longer meet my financial commitments?

I wouldn't have the debt if I couldn't pay it. Even if the interest rate goes up to 20%+ I could still afford to pay my debts.

Taking debt as an outright figure, not in the context of earnings is pointless. For me, having £50,000 of unsecured borrowing is perfectly affordable. For some people, having even £200 as a loan would cripple them.
 
Too much! I have a £8000 student loan. Plus a £10,000 loan to live off for a couple of years while i trained to be a pilot. Oh, and the biggie to pay for all that, just under £70,000 now. So around £88,000. Only gonna take about 7 years to pay off :/
 
Beansprout said:
£1200 worth of student loan so far, but that doesn't really count because it's hidden away doing weird and wonderful things....
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Like paying for a Mac Book :p

If I was to incude mortgage and student loan I'd have 100k on the books.

Without them its a few grand.
 
Rilot said:
Why?
Does house prices crashing have the added effect that I can no longer meet my financial commitments?

I wouldn't have the debt if I couldn't pay it. Even if the interest rate goes up to 20%+ I could still afford to pay my debts.

Taking debt as an outright figure, not in the context of earnings is pointless. For me, having £50,000 of unsecured borrowing is perfectly affordable. For some people, having even £200 as a loan would cripple them.
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You're missing my point.

In your original post, you stated that the equity in your home represented your savings. I was merely pointing out that this view was dangerous because should the market crash, your savings would diminish or disappear. Does that make more sense?

I am sure you can meet your commitments, I wasn't suggesting otherwise ;)
 
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Deadly Ferret said:
I'm going to hazard a guess. Did you borrow some money to buy some things which you couldn't afford and didn't need? ;)
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Not really, we have next to nothing to show for it.
Also we have never lived outside of our means. Its like now, after all bills are paid and things are bought or dealt with, we have plenty left over. Never missed a payment on anything and have excellent credit rating for near on 10 years.
weird :/

well thats actually a lie, we have a gorgeous baby and had a £20k wedding in the dominican and for the last 18 months ive been pretty much the sole provider for the family (even now the wife is earning its only to cover the child care costs for while she is in work!).
 
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Why do people think when the house market crashes, all will be fine and they will be able to afford a house. Do you ever think of why it would be crashing in the first place?
 
teaboy5 said:
Why do people think when the house market crashes, all will be fine and they will be able to afford a house. Do you ever think of why it would be crashing in the first place?
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thats the funny thing, if the market crashes because the %rate gets silly, then a house will cost less, but the repayments on it will still be massive, so just as unaffordable!
 
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