I get asked a lot of questions over the years:

This list can go on and on, and if you have visited this web site, then you know.

However, the one question I have been asked a few times is if being in debt is a bad thing. How bad or negative is being in debt?

This can range from keeping a balance on a credit card, to always owing money somewhere; car loan, HP purchases, catalogues, etc.

The answer to this is very subjective, meaning it depends on two factors:

Affordability and Feelings

Being in debt itself is not a bad thing.

If you buy a property and take out a 10 year or 15 year mortgage, you are going to be in debt for that time period, be it 10 or 15 years.

Does that make you feel bad? Probably not. You are a home owner, and have your own home.

If you had a loan you were paying on for 10 years with nothing to show for it, then you may feel differently.

The two points here are affordability and how you feel about the level of debt you have.

If every month you can easily pay your monthly obligations, then it doesn’t weigh on you. If you struggle to pay them, or wish the money for the payments was spent elsewhere, then it can be an issue.

It is about affordability, and how you feel about the level of debt you have, and again….affording it.

Some people feel OK with £10,000 of debt, some with £20,000 of debt, however, for some, £1,000 of credit card debt is a source of anxiety.

Again, subjective. Everyone is different.

So is debt, and being in debt bad….no, it is just how you feel about it.

And there are always options to get out of debt.

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