What are your plans when you finally become debt free?

Sun_Addict
Sun_Addict Posts: 20,852
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edited 21 April 2009 at 5:43PM in Debt-free wannabe
Hi everyone:hello:

I've got a diary over on the DF diary board and as I can finally see an end in sight to my debt I'm starting to think about what the money I am using to pay off my debt will go on once it's cleared.

I hope that by putting it down in black and white this will spur me on to clear it faster.

I would be interested to know what plans other people have because I know how it feels when you are letting money go to pay off what is basically what you have already had (if you get my meaning). It feels like dead money.


So when I've finally cleared my debt I will:
  1. Buy a bottle of bubbly!
  2. Treat myself to something nice (but not expensive!)
  3. Treat me and OH to a nice meal out (we haven't done this for so long)
Then down to the nitty gritty:
  1. Save £1000 for an emergency fund for such things as car repairs, appliance breakdowns, vet bills, etc
  2. Save six months expenses for a real emergency fund
  3. Just make sure I save something EVERY month
Everytime I look at this list I hope it will motivate me. I am so looking forward to the day I can put my plans into action and hopefully this will be achieved in 11 months time or, if I'm lucky, by the end of this year.

I think it would be a good idea if there was a board for newly debt free people where they could post for, say, the first year until they have found their feet - a bit like having the P sticker on your car when you have just passed your test. :rotfl:

So what are your plans?

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Comments

  • BusPass_2
    BusPass_2 Posts: 315 Forumite
    Great to hear about your progress.

    2002 we were £40,000 unsecured down the swannie and hurtling along an undisciplined path to oblivion. We couldn't cover monthly c/c payments from income which was our light bulb moment. Like others I looked at my debt as the monthly repayments and not the total amount owed. After 5 years of austerity, budgeting, 0% cards we managed to get out of debt.

    2007 debt free!!!!! One of the most satisfying moments I have had for many a long year (since the kids were born)

    Now we have £40,000 (yes £40,000) in savings and are squirelling away £2,000 a month. We are addicted to saving and are not going to draw breath until we reach £100,000.

    I find the threads on here inspirational especially the what little things have you done today because I feel that once you have picked up the habit you'll keep going whether you are in debt or not.

    Enjoy your moment.
  • Daffykjs
    Daffykjs Posts: 413 Forumite
    oooh what a nice thread!

    I think i would also celebrate with a nice meal and drink etc first.

    then i would reassess our budget. it it very tight at the mo and it would be nice to have a bit more leeway and bit less penny counting. So i'd draw up a new realistic and not too high but not as low as now budget.

    And the rest i would squirrel away for rainy days and also for a holiday which i think by then we will be in desperate need of!
    DMP Mutual Support Thread Member No 261
    Debt at start of DMP (Jan 2009) = 46,147.86 Now = 36,826.98
    DFD = [STRIKE]Jan 2014[/STRIKE] May 2013 ([strike]60[/strike] [STRIKE]52[/STRIKE] 41 payments to go)
    NSD:Nov 12/12:jDec 9/10 Jan 5/10
    Slowly but surely
    :coffee:
  • Storm
    Storm Posts: 1,749
    Debt-free and Proud!
    Forumite
    Sun_Addict wrote: »
    I think it would be a good idea if there was a board for newly debt free people where they could post for, say, the first year until they have found their feet - a bit like having the P sticker on your car when you have just passed your test. :rotfl:

    I think this would be a great idea too - I found once I was df a year ago that I was a bit directionless for a while - I felt that I shouldn't keep posting on DFW, but didn't really find another area of the boards that I felt as at home on!

    Personally, I think a treat with the money in the first month is definitely called for, but after that I eased up a bit on my shopping budget, but the money I was paying off each month has been re-directed into different pots (holiday, emergency fund, deposit for a house etc). The nicest thing though is that I stopped the overtime, and although I do still list on Ebay etc it's not nearly as regular, so at least I know I've got a bit of a fall back if things get tight again in the future.

    Standing orders are my best friend with saving - they all go out on the 1st of the month, and I never let myself check my bank balance until the 2nd, so I don't even see the money being siphoned off (so it's a nice surprise when I eventually check my savings accounts!)

    Good luck with the end of your DFW journey

    Storm x
    Total Debt 13th Sept 2006 (exc student loan): £6240.06 :eek:
    O/D 1 [strike]£1250 [/strike]O/D 2 [strike]£100[/strike] Next a/c [strike]£313.55[/strike]@ 26.49% Mum [strike]£130[/strike] HSBC [strike]£4446.51[/strike]@15.75%[STRIKE]M&S £580.15@ 4.9%[/STRIKE]
    Total Debt 30th April 2008: £0 100% paid off!

    PROUD TO [STRIKE]BE DEALING [/STRIKE] HAVE DEALT WITH MY DEBT ;)
  • dylansmum
    dylansmum Posts: 234 Forumite
    Hi

    Great post! One unsecured debt left- off in 2 months max. Then overpay mortgage and save! Might treat family to day out somewhere if feel I can risk it. Five years of no money and soon we will have a surplus!!

    Well done everyone for keeping agoing!

    Down with Debt!
  • meerkat2007
    meerkat2007 Posts: 469 Forumite
    I've just been made redundant (voluntarily), and the bulk of my redundancy - once I receive it - will be going on reducing my debts and therefore monthly outgoings, as I am starting a new job on a slightly lower salary but with better prospects next Monday. This will bring my debt-free date forward by about 18 months, I think. That includes the mortgage.

    Once everything is paid off, I shall be saving for a year's living expenses in reserve and an emergency fund of about £5k to cover house maintenance and car repairs.

    After that, I shall be saving up to get the house renovated completely. I don't plan on moving out of this house until they carry me out feet first, so I want to spend money on it while I'm making money, so that on the day I retire, I can look around and know that the house is as I want it to be, and I don't have to organise any major jobs. After the renovation, it will be general saving for my retirement.

    On retirement, I shall be spending some of my savings on a holiday, possibly a cruise, and when I come back from that, I shall be off to a rescue to find a little dog who wants to adopt me.

    I have it all planned! :j
  • Well done on your progress!!!

    It was my 1 year debt free (except mortgage) anniversary last Friday and am pleased to say that I'm still debt free.

    We got married last October so the debt repayments were automatically redirected in to the wedding savings fund. We had a fab day and had everything we wanted and a very luxurious honeymoon and not one penny debt :T

    From the wedding until now we have been savings our 6 months "just in case money" which we achieved last month. We have also be overpaying the mortgage as we are on a tracker and just kept the repayments the same as they were originally.

    I've let up on the purse strings quite a bit and we both have a generous spends budget each month which has been great for me but not so much for hubby. It's the first time he has had a set amount to spend each month and it struggling a little :rolleyes:

    I'm probably being made redundant tomorrow so will be tweaking the budget once again to make sure we can live off hubby's money and not touch the savings. I'm hoping that we'll still be able to put a little by each month but we'll have to seriousy adjust our spending to do that :o

    We were hoping to move next year and were about to save for that but it all depends on the job situation now.
    Debt at LBM (March 2006): £30,000 :eek:
    DEBT FREE SINCE APRIL 2008!!!! YIPPEEEEEE!!!!!
  • newlywed
    newlywed Posts: 8,255
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    edited 16 April 2009 at 4:03PM
    Send off for my passport, then save up and book a holiday!!!!!! :D

    Then go shopping at the clinique counter and M&S food hall :p

    Saving up for a newer car

    Never get a credit card again!

    And find out if I can work 4 days a week at my current job.


    Only 1/3 of the way there though - so got a few more years yet :cry:
    working on clearing the clutterDo I want the stuff or the space?
  • Once I'm debt free I'll have a massive treat. Definitely a holiday somewhere. Then I'll get some savings behind us (probably £10k) then aim to pay off the mortgage early!
    Debt @ LBM 29/12/08 - £49044! Now £44684.
    Fat loss 29/85lbs // £100 into £10k £243.07/£10k
    HSBC Loan 9658 // HSBC CC 3484 // HSBC CC 1464 // DP's 779 // Car 0% 4851 // Halifax OD 1348 // HSBC OD 1.5k // HSBC OD 1k // Barclays OD 400 // IOMOM 4400 // S Loan 15k // Cap1 £800
  • I've just been made redundant (voluntarily), and the bulk of my redundancy - once I receive it - will be going on reducing my debts and therefore monthly outgoings, as I am starting a new job on a slightly lower salary but with better prospects next Monday. This will bring my debt-free date forward by about 18 months, I think. That includes the mortgage.

    Once everything is paid off, I shall be saving for a year's living expenses in reserve and an emergency fund of about £5k to cover house maintenance and car repairs.

    After that, I shall be saving up to get the house renovated completely. I don't plan on moving out of this house until they carry me out feet first, so I want to spend money on it while I'm making money, so that on the day I retire, I can look around and know that the house is as I want it to be, and I don't have to organise any major jobs. After the renovation, it will be general saving for my retirement.

    On retirement, I shall be spending some of my savings on a holiday, possibly a cruise, and when I come back from that, I shall be off to a rescue to find a little dog who wants to adopt me.

    I have it all planned! :j

    I'm impressed!!! :TI really haven't thought that far in advance....
    Debt at LBM (March 2006): £30,000 :eek:
    DEBT FREE SINCE APRIL 2008!!!! YIPPEEEEEE!!!!!
  • Uniscots97
    Uniscots97 Posts: 6,685
    Name Dropper First Anniversary Combo Breaker First Post
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    I've just been made redundant (voluntarily), and the bulk of my redundancy - once I receive it - will be going on reducing my debts and therefore monthly outgoings, as I am starting a new job on a slightly lower salary but with better prospects next Monday. This will bring my debt-free date forward by about 18 months, I think. That includes the mortgage.

    Once everything is paid off, I shall be saving for a year's living expenses in reserve and an emergency fund of about £5k to cover house maintenance and car repairs.

    After that, I shall be saving up to get the house renovated completely. I don't plan on moving out of this house until they carry me out feet first, so I want to spend money on it while I'm making money, so that on the day I retire, I can look around and know that the house is as I want it to be, and I don't have to organise any major jobs. After the renovation, it will be general saving for my retirement.

    On retirement, I shall be spending some of my savings on a holiday, possibly a cruise, and when I come back from that, I shall be off to a rescue to find a little dog who wants to adopt me.

    I have it all planned! :j



    Been made redundant too. Hoping I find a job soon so I can use the bulk of my redundancy same as you have done.
    CC2 = £8687.86 ([STRIKE]£10000[/STRIKE] )CC1 = £0 ([STRIKE]£9983[/STRIKE] ); Reusing shopping bags savings =£5.80 vs spent £1.05.Wine is like opera. You can enjoy it even if you don't understand it and too much can give you a headache the next day J
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