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44 sats \ 3 replies \ @alt 9 Apr freebie \ on: Are you in the UK and overwhelmed by debt? Personal_Finance
I'm in the UK and have made sure not to get wrapped up in significant debt. Credit cards are paid in full every month.
Only significant debt is my car loan, but I'm still positive-net-worth thanks to Bitcoin. I'm ignoring my student loan due to the way they work here, I don't have to pay it all back.
Thing is, I know I'm in a much better place than some of my peers who are bad with money, but it does sting a bit when I see them living a better lifestyle despite having less money. I know it'll pay off in the end though, and the other half is completely on-board with how I manage our finances.
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The important differences are that a) Student loan payments are only deducted after a certain salary threshold and b) The debt is written off after period of ~20-30 years (depending on when the loan was issued).
So, UK student loans behave much differently to conventional loans. They operate more like a "graduate tax". The terms of the loan mean that there's little incentive for paying them back early, and the vast majority of holders will not be paying the full amount back before they are written off completely. As of now, graduates in the UK owe around £220B of student debt.
While the US system is predatory, I believe it to be at least fairer than the UK's system where the general public will be left to pick up the tab.