35% of the UK have a negative net worth. Inflation helps there, assuming your salary increaese with inflation. Interest rates of course then have the opposite effect,
Year 1: debt of £100k and salary of £20k and 2% interest and 4% inflation. £18k left over, £100k owed (5x wage).
Year 2: debt of £100k, salary of £20,800. £18,800 left over, £100k owed (4.8* salary)
Year 10: debt of £100k, salary of £29600, £27,600 left over, £100k owed (3.4* salary)
In Year 1 pounds, salary stays at £20k, but debt drops to £67,566, and interest payments drop to £1351 a year.
Year 1: debt of £100k and salary of £20k and 2% interest and 4% inflation. £18k left over, £100k owed (5x wage).
Year 2: debt of £100k, salary of £20,800. £18,800 left over, £100k owed (4.8* salary)
Year 10: debt of £100k, salary of £29600, £27,600 left over, £100k owed (3.4* salary)
In Year 1 pounds, salary stays at £20k, but debt drops to £67,566, and interest payments drop to £1351 a year.