Debt Free? Tell Me Your Secret!!

acheekymunky

I have spent quite a while today looking around the chat forums and was extremely jealous but very impressed when I saw posts for people who were '4 months to being debt free'....'10 days to being debt free'....I would love to know your stories and how on earth you have managed this. I myself think i will never see the end in sight so I am looking for a bit of inspiration..

look forward to hearing from you all

Cerbera_2

acheekymunky wrote:

I have spent quite a while today looking around the chat forums and was extremely jealous but very impressed when I saw posts for people who were '4 months to being debt free'....'10 days to being debt free'....I would love to know your stories and how on earth you have managed this. I myself think i will never see the end in sight so I am looking for a bit of inspiration..

look forward to hearing from you all

Hi acheekymunky,
First of all go here and find out your debt free date, it may be closer than you think
:beer: :beer:

ms_london

To be honest, I worked out my debt free date before the "whats the cost" calculator come into action.

Since I wanted to pay off the rest of my debt this year (£10,000), I knew that I had to make x monthly payments of £690 a month (after my minimum payment & taking into account the interest I would be charged, thankfully only 2.3%!!).

I had a little spreadhseet so that each month after I made a payment, another line could be highlighted & I would only have say "6 payments left" etc etc.

Even knowing you have your finances under control lifts a huge weight off your mind (it did mine), and although ive been in debt this year and still am (until it gets paid off next week), knowing that I have my finances in order, and know EXACTLY what is coming in and going out each month, makes me so much more happier & independent. I have NO overdraft, credit cards, store cards, even a cheque guarantee card, so if I dont budget for the month, then I WONT have any more left, no thinking "oh, well thats ok, I can just dip into my overdraft, that wont hurt".........

Its only occured to me this year that just because you get paid X each month, its not there so you have to spend all of it, infact its only been the last year or so that ive actually had any money left over from payday to "roll over" to the next month... I used to spend all of my wages and more. Its about living below your means...........

Have you posted your SOA. Thats always a good starting point.

Ms_London

margaretclare

I agree with ms_london. To be debt-free, you need to have your finances under control. Too many people seem to have no idea about what is going out all the time, what their normal living expenses are and what they spend on top of that. Even worse, many people have cards and loans and yet have no idea what the interest rates are and what the penalties are for late payments and non-payments.

You need to know EVERYTHING! Some people do it with spreadsheets, others with pencil and paper, others get hold of some personal accounting software like MS Money. Work out a budget. Once you've worked it all out, a few minutes daily will keep you on the 'straight and narrow'.

We're pensioners, we have online bank accounts and we check daily. We only have one loan remaining, due to be paid off in 15 months' time. I've been using Quicken for about 10 years. Quicken is no longer supplied to the UK market, but I'll carry on using it. Personal accounting software has been the one thing above all which has helped me get on to the 'straight and narrow' and stay there. I have a credit card, but I make sure I pay it off religiously every month so I incur no charges. I have an overdraft facility but I don't dip into it. I keep my spending within the limits I can afford!

HTH

Aunty Margaret