Is it normal to be in debt?

amother

Tue, Mar 07 2023, 7:47 pm

We have a good income but also have about 25k in credit card debt Sad

We’ve been paying it off slowly but it’s taking forever. In the meantime I’m really curious if this is a normal way to live or is it totally wrong? Is it common amongst your average middle class family or not so much?

Cressel68

Tue, Mar 07 2023, 7:50 pm

amother Daisy wrote:

Maybe start a poll?

Yes! I'd love to see a poll on this

amother

Gladiolus

Tue, Mar 07 2023, 7:56 pm

There is no normal when it comes to finances, everyones is so different. It also depends very much on your expenses. I personally cant handle debt so im careful with expenses. If your income is good then you may question if there are expenses to cut so you can pay off quicker.
Im sure others who chime in will say its completely normal as long as you know it can be paid off and you dont accumulate more.

amother

Cinnamon

Wed, Mar 08 2023, 2:07 am

Finance is a culture all of its own, sometimes communal but most often familial. Personally, my parents taught us to never spend more than we have and to only use a credit card if we can pay the full balance at the end of the month. DH grew up similarly. We're both pretty careful with money and only splurge rarely. We teach out kids to be careful too with the small things. For example, when I take kids grocery shopping with me and there are different brands of something to choose from I'll have them calculate which is the cheapest rather than grabbing the first thing we see off the shelf.

amother

Mauve

Wed, Mar 08 2023, 2:12 am

I dont know if uts normal or not but with our credit card, we are nof able to be that much in debt. Maybe its an israel thing. We have a set amount we can go in debt to and beyond that, they close our credit cards and we are not able to use them.
So while we live month to month we are not abke to have that much debt.

LovesHashem

Wed, Mar 08 2023, 2:31 am

I grew up seeing my family struggle financially and I knew then I'd never go into debt.

If we don't have the money we don't buy it. We use debit cards only. We only use a credit card when we order online or buy an appliance or something sometimes and pay it over a few months.

amother

Lawngreen

Wed, Mar 08 2023, 3:15 am

Whether being in debt is common or not doesn't really matter. As a rule, debt other than a mortgage is a bad idea.

Are you asking if everyone who's living it up is financing their lifestyle on credit? Maybe, it depends. Just know that there are also millionaires driving used cars and wearing regular non-designer clothing.

Purim is a good time to reflect on the fact that not everything is how it seems.

amother

Banana

Wed, Mar 08 2023, 4:54 am

No. Debt shouldn’t be and isn’t normal. Either cut your expenses or increase your income. People on this site always support one another with debt - that’s more harmful than helpful. Live at a bare minimum and get that 25k paid off ASAP. Interest will only make things worse.

amother

Mauve

Wed, Mar 08 2023, 6:25 am

amother Banana wrote:

Jyst so you realize, its not always just easy as that.
If one is living bare boned as it is and has tried to increase income but its just not happening, then debt is going to happen.
Its not so black and white to do either x or y. For some its way more gray than that.

sequoia

Wed, Mar 08 2023, 6:29 am

I don’t understand how people go into debt in the first place.

Do they have no maximum on their credit cards?

amother

Blue

Wed, Mar 08 2023, 6:38 am

No, not normal. I don't spend if I have no way to pay it off. When we had insufficient income our MM was very basic. Dollar store bag, candy from there etc. We just didn't spend more than actual needs.

amother

Jasmine

Wed, Mar 08 2023, 6:40 am

I dont think so. We have a lot of debt (mortgage and student loans we took out to cover college not living expenses) but not credit card. Is this coming from years where you were not making enough?

amother

Daffodil

Wed, Mar 08 2023, 6:41 am

sequoia wrote:

I don’t understand how people go into debt in the first place.

Do they have no maximum on their credit cards?

We had about 10k debt on our credit card at one point. We have a 20k limit so they didn't care.
bH between my husband's end of year bonus and our tax refund we paid off most of it- just 2k left.

amother

Ebony

Wed, Mar 08 2023, 6:43 am

sequoia wrote:

I don’t understand how people go into debt in the first place.

Do they have no maximum on their credit cards?

I’m not in debt bh. But I have about 300k limit on all my credit cards

amother

Banana

Wed, Mar 08 2023, 6:44 am

amother Mauve wrote:

If I was 25k in credit card debt, my husband and I would be doing every possible job to increase income to pay it off. I don’t care if I have to bag groceries in a supermarket. People have become way too comfortable with debt and don’t realize what it actually means. You should not be using a credit card anymore.

amother

Snow

Wed, Mar 08 2023, 6:45 am

I think it’s very normal to slip into overspending in the society we live in. If you’re going into debt over basic necessities, please contact tzeduka orgs and find any way you can increase income to cover yourself month to month.

If you’re going into debt over a lot of “$20 here, $50 there” kind of purchases that suddenly added up to more than you can afford, cut up your credit cards, set a strict budget, and only pay for things debit or cash

amother

Daffodil

Wed, Mar 08 2023, 6:51 am

amother Banana wrote:

Except if you already work full-time at middle class jobs when are you bagging groceries? Instead of sleeping?

Fact is frum life is insanely expensive.

amother

Maple

Wed, Mar 08 2023, 6:56 am

If by normal you mean common, then yes. If by normal you mean recommended, then no. "Normal" debt is a mortgage or student loan. High cc debt is a very very bad idea. Eat nothing but beans and rice and don't buy so much as new underwear for a year if you must, but get that monkey off your back.

DVOM

Wed, Mar 08 2023, 6:58 am

sequoia wrote:

I don’t understand how people go into debt in the first place.

Do they have no maximum on their credit cards?

We have no credit card debt, but we do have student loans and a mortgage. That's debt, no?