What would you do?

Firstly, well done for (almost) being debt free. I'll be following this thread with interest as I am keen to know what others are planning to do... may shape my future decisions, but for now...

I'm debt free in approx Feb next year, not too long! Will have just short of £1000 spare every month!

After a lot of thought, I have narrowed my future plans down to 2 options...

1. Continue living like a pauper and save the full 1k each month, putting it inot a savings account.

2. Spend an extra £100-150 more on clothing, social activities, 'luxuries' etc each month and then putting the rest into a savings account.

I'm hoping that after holiday/xmas/unexpected costs, I'll be able to get a new (well, new to me) car after about 14 or 18months (depending on how things pan out)... If you're interested, it'll be an Audi S5 V8(!) I see it as a major treat for living like 'this' for 14 years (Student/cc problems/then on a DMP). I am looking at them on autotrader, calculating running costs, watching youtube videos etc. once or twice a week and this is giving me real motivation to continue strictly with the DMP and to also be extra careful when I become debt free. Many will say I am being severely materialistic and they are absolutely right. But I have lived the first decade (and some) of the 21st century with constant money worries and being debt free and able to afford something without credit is going to be a huge deal for me.

That said, I will be getting a credit card when I'm debt free. I'll put fuel & shopping on it & pay in full each month in order to rebuild my credit score. After that, my parter and I plan to save for a house - nothing too flash, just a place to call our own (with a garage to store my baby at night!)

Well done on nearly being there!

TBH things are still really difficult trying to balance the books - my debts were paid off through 2nd jobs & e*baying (in a big way! bulk purchasing clearance goods & re-selling etc).

These have now gone (yay!) but it's meant I'm back to the really tight budget and, yes, unfortunately it's still a constant struggle and watching every penny.

If you've paid your debts on your "normal" wage and will have loads of spare money once they're gone, then fantastic! I'd try to save a bit but also look to things that you've maybe always wanted to do / places you've always wanted to go etc but ..... save for them first!

I think about this a LOT! We should be debt free in about 5 months, although I'm doing everything possible to shave this down. OH gets overtime at work currently and a couple of good months of that could shave another month off the debt.

Our biggest desire is to move house, and although we've got equity in our current house, I realise we need to save too. We'll have around the same as you 'spare' each month and just like you've described, we've weighed up carrying on living so tightly alongside allowing a little slack to buy things like clothes, things for the house etc, which we've found hard to go without!

I don't know, I enjoy managing our finances and doing a spreadsheet and I love predicting our financial situation a few months down the line. I think that's what will make us dedicated to save while clearly showing what we can afford for a little treat each month.

It's exciting times! Bring it on!

maccerz wrote: »

Well done on clearing your debt. It is admirable to know you worked hard to clear your debt, but only to be faced with a tight budget. Would it be fair to say that if you've raised the funds to clear your debt in the past, to also raise funds for your desire to do things and go places? (easier said than done hey?!)

Thanks:o - I may take a 2nd job at some point again if the urge to visit some of the many places I'd love to go gets too strong!:)

ATM, I'm enjoying having more "me" time IYKWIM - yes, I'm still skint (but have been for years anyway so no real difference:rotfl:) and it's nice to be able to go to work, come home & relax without constantly rushing around to get to 2nd job or list / package / post e*bay things etc

I currently pay £750 towards my debts. Should be debt free march 2014. My plan is to spend 6 months saving for the car i have always wanted, a focus. It may not sound special but would mean everything to me. Then my hubby is going to give up work and we are going to have another baby. Currently childcare for one is £525 so my hubbys wages are only paying the debts and the childcare. He is a gardener and so can work for himself when he wants which means he can work around looking after the children. I really want another baby luckily i will still only be 30 when we are debt free. Will be great when we get there!