what's your dealing with debt tactic?

dib-dab

Just wondering what everyone's approach to their debt is - I guess this only applies to those who have spare money after debt payments. By 'approach' I mean do you save every penny even if it means that you cannot have any luxuries or do you allow yourself some luxuries even if it means that the debt misery will continue for a month or two longer?

Our debt is now all in 2 loans which do not allow overpayments. We have a bit of spare cash each month which we are planning to save and then pay off the loans early when the amount saved will cover it.

I know that the usual advice on here is to pay, pay, pay the debt and do not allow luxuries. But I don't think I can do that. This may cause some people to think I have not had my lightbulb moment. Believe me, I have - I just think that if we do not treat ourselves at all until we are debt free and every waking moment is spent focusing on debt then we will seriously go mad. We got married in April and our first year of marriage so far has been major stress due to our money worries.

I am not talking about getting an expensive haircut every week and my husband taking up golf. Just a few days away and the occasional nice meal out. We are desperate for a break away from home just to get away from things for a few days.

I feel bad writing this as I know that not everyone has the spare money to even think about treating themselves but for those who do - do you choose to use every penny towards debt or to still feel like you have some kind of life?

I will add that we have cancelled all credit cards now so any type of holiday would be paid for from money we have put away and will not add to our debt.

I do feel totally miserable about the debt so you might think I am mad to even think about spending money when I want to pay it off as soon as possible but I do feel like a month or two extra at the end of it versus saving our sanity is not a bad trade off. But maybe we should be taking this as punishment for being so stupid with our money up to now so if you feel I need a reality check then I await your criticism....

mozzyc

We go out for dinner maybe 2/3 times a year, for a special occasion only. And we have to budget at least a couple of months in advance to afford it. All our friends know our situation, and know that we can't just go out on a spur of the moment thing.

As for holidays, we've been saving now for the past few months to be able to go home overseas to see our folks at the end of the year. But generally, we don't go on holidays. We don't have much spare at the end of the month, so a holiday away takes about a year of saving. And we usually save them for seeing family and important things like that.

It's hard, but I guess this is the price you pay. I just can't wait for my debt free day so that saving up for something won't take as long and we can see our family more often than we do now!
Roll on that day!

misspixierocktastic

Dib-dab i am on a dmp with cccs i do have some money left over (bear in mind i live at home)

I have a budget of £80 for the whole month for going out or having a meal with my mum and my sister or meeting my friends in town for a hot choc and luxurys etc- some people that live on their own have less than me so i know i'm lucky

I don't always spend this but it's my little allowance so i know i dont deprive myself from having a little fun when the debt thing is getting me down
I do not feel bad about it even though i know i could chuck £40 of that at my debt,i'm happy with the way my debt is coming down 2 years or so isn't a long time so i'm happy with the choice i made to have that little extra every month i'd only end up feeling miserable if i denied myself and less pro active about clearing the debt

On the months i don't spend the whole amount i put it all in savings for a settlement figure
:-)

nicnacnoo

I have nights out and meals out and socialise as much as i used to, just spend less when i do, im one of those people that can go for a night out and not have to have a drink.
Im going for a girly weekend to Magaluf in 6 weeks, the flights were saved for, the spending/beer money came from saving £2 coins and a few ebay sales, and me and my friends saved £2 a week for food money. So i still get to do the things i want, just plan well in advance!
Nic

dib-dab

Thanks for the replies.

mozzyc we also live overseas so have to spend on flights to go home so this is also something we have to put money away for. It is lovely to see family and friends but I find it exhausting as we are trying to see everyone so it is by no means relaxation, also expensive as everyone wants to go for lunch/dinner and we have to think of ways to see people without spending, usually inviting ourselves over to their house is good as it only costs us a bottle of wine!

One positive thing I can see from allowing a bit of spending with money left over is that it gives a taste of what things will be like when we are debt free - as in knowing what it feels like to have saved for something before enjoying it. If we do get a couple of nights away then we have to save for it with our leftover money whereas before it would have been on the credit card.

debtdesperado

I think it depends on how big your debt is, and how long it's going to take to pay off. It's going to take me two or three years to pay off (am in year 2 now)...and although at first my attitude was chuck everything at the debt, it got boring and then I would decide to treat myself... which turned into a crazy splurge and I would then be broke for the next 3 months, which meant by the time I had money I was desperate to spend....splurge, repeat.

So now I treat myself every time I feel I really need it (not all the time!), but it's the way I do it that is different - I think about what I want/need, I look around and find the best one at the best price, I check to see if I can get it cheaper, I consider whether there is anything I can sell to get some money towards it, I work out if I need to save for it and where I can cut back, and only then do I buy it, and then I find I appreciate it more. If it's food or drink, then I look for vouchers, decline a second bottle of wine, drink tap water etc - that all keeps the price down too!

But if your debt could be paid off in a short time, say, 6 months, then I think the hell for leather, live on value breans and bread approach can work.

Actually, one final thing I would say is if you feel guilty treating yourself, it's probably because in your heart of hearts you know you are wasting that money, so it's not a treat and therefore you could have put that to your debt. When it is a treat, you will enjoy spending the money but even more you will enjoy what you have spent your money on.

dib-dab

debtdesperado wrote: »

I think it depends on how big your debt is, and how long it's going to take to pay off. It's going to take me two or three years to pay off (am in year 2 now)...and although at first my attitude was chuck everything at the debt, it got boring and then I would decide to treat myself... which turned into a crazy splurge and I would then be broke for the next 3 months, which meant by the time I had money I was desperate to spend....splurge, repeat.

So now I treat myself every time I feel I really need it (not all the time!), but it's the way I do it that is different - I think about what I want/need, I look around and find the best one at the best price, I check to see if I can get it cheaper, I consider whether there is anything I can sell to get some money towards it, I work out if I need to save for it and where I can cut back, and only then do I buy it, and then I find I appreciate it more. If it's food or drink, then I look for vouchers, decline a second bottle of wine, drink tap water etc - that all keeps the price down too!

But if your debt could be paid off in a short time, say, 6 months, then I think the hell for leather, live on value breans and bread approach can work.

Actually, one final thing I would say is if you feel guilty treating yourself, it's probably because in your heart of hearts you know you are wasting that money, so it's not a treat and therefore you could have put that to your debt. When it is a treat, you will enjoy spending the money but even more you will enjoy what you have spent your money on.

Thanks for your comments debtdesperado - all sounds sensible. I think that it is the thought of nothing for 2 years (hopefully less) that is very daunting especially when we feel so in need of a break now. I do and don't feel guilty - the guilty feeling comes from the fact that we have spent the past few years treating ourselves and this is why we are in this position. So I kind of feel that we deserve to suffer. But then at the same time I don't feel guilty - it's not like we are bad people, we have just been a bit irresponsible and I do feel that a break will do us the world of good. Just a couple of nights somewhere I hope will recharge the batteries and give us the strength to face the year ahead.
Mu husband and I are totally focussed on our debt and we have put a total ban on using credit cards (cancelled and no way are we applying for more) so I don't think it would lead to a spending spree as we wouldn't have the means for it.
Thanks again for the advice.

debtdesperado

No worries Dib-dab - I was in a similar boat for similar reasons (£42k on credit cards etc...) and my debt is about half that now. You'll get there!

I would say go away and enjoy the break (but perhaps not to a five star hotel somewhere flash?! :-)

The best proverb I ever heard which I remind myself all the time on my debt-free journey is "Don't look up at the mountain, just start climbing"... so true. It's too overwhelming to look at the whole thing, so I just pat myself on the back at the end of each month for meeting my debt payments and not adding to the debt, and then don't think about it again until my next pat on the back time.

Hope that helps - good luck!