Finally debt free - but worried about slipping back into old habits!

liz_uk

I had £16k of debts and after my grandfather passed away, he left me an inheritance. After being in debt and surviving on paying minimum payments fo the last 4 years, I am finally debt free and have a sum left over.

The only thing is, the oher day, I found myself using my credit card - I didn`t even think about it - just handed it over!

My initial intention was to only have 1 credit card, and to try and build up my credit score up again by making small purchases and paying it off.

I`m just scared that old habits will rear there ugly head again.

I`m an impulse buyer and thats how I got in a mess in the first place. £16k and nothing to show for it!

How am I going to get out of the habit, should I just cut the card up??

Hope someone can advize?

cookie220985

you could always get a prepaid credit card thats controlled,

try this
http://www.mycashplus.co.uk/cashplus-card-uses/improve-credit-rating.aspx

LeeSouthEast

I've used my credit card every month since becoming debt free.

The key is I monitor what I spend, and pay it in full every month without fail (by direct debit).

Butti

liz_uk wrote: »

My initial intention was to only have 1 credit card, and to try and build up my credit score up again by making small purchases and paying it off.

I`m just scared that old habits will rear there ugly head again.

I`m an impulse buyer and thats how I got in a mess in the first place. £16k and nothing to show for it!

Hi Liz,
Two things I think you need to work on if you haven't already. Work out why you are an impulse buyer. What does that purchase do for you? What is going on in your head in terms of a sense of entitlement?

Secondly you need to slow the process down. You need 'something' which stands between you and the impulse and makes you think. This could be a number of things - a plastic wallet around your card with a phrase stuck over, my favourite 'If you buy what you can't afford you steal from yourself' or cut one from a Government safety leaflet 'Think!'

Or take the card away entirely. You want to spend responsibly on it and then pay off. Put it in a cup of water in the freezer. When you see something you want and can afford to pay off within a month, get it out, put it in the airing cupboard, use it and then refreeze it. It will still work (even if like mine it looks slightly warped!)

B

lucystardust

I think just having the one card is a good idea. Maybe you could also keep receipts and enter spending onto a spreadsheet to keep track of it.

I find this really helps me to monitor my expenses and think twice about overspending on impulse items. It's also good to see what things are essentials like food and what things are non-essential fun purchases and to keep a good balance between the 2 types. Also then when you get your CC bill to pay off it won't be a shock!

older34

Hello, not sure this is the right place, but I need help, have debt of £2800, although I am up to date with payments, am finding it impossible to make monthly payments.Am a pensioner, debts spread between 2x credit cards, mobile phone and a catalogue bill. Have cut up the cards but of course still have to pay the bills. I really want to continue paying these debts but dont know how, please has any one out there any advice. Thanks in anticipation

Poosmate

Hi Older, you might want to make your own thread for optimum help and support.

It would help if you could post a Statement of Affairs using this link:

http://www.makesenseofcards.com/soacalc.html

Please make your own thread and we'll be able to concentrate on you and your circumstances.

Thanks

Poo

rictus123

Sorry but you just need to budget. Not to hyjack but lee hows it going with saving a deposit?

BitterAndTwisted

Older34, just get along to the Old Style part of the forum and have a read on there. There are thousands of tips and suggestions about how to cut your food and housekeeping spending down. You've bought the carp and now it's belt-tightening time to cut your spending and save the money for the bill-paying.

Poosmate

Liz, I am not even dreaming of the day I become debt free yet!

I guess it must be hard when you suddenly become debt free. I have weaned myself off my credit cards and have only used it once in the last 18 months or so for my car insurance (which I got through Quidco and am about to get £70 cashback! Yay).

We all got into debt for different reasons and we all use different ways to get out of it. Some are able to cut up their cards from day 1 and really struggle without, others like me, have no option (because we're struggling even with credit available) but to continue to rely on their CC until they can gather enough savings to pay those one off annual bills which previously went on the card.

You've had 4 years of paying minimum payments which you now don't have to pay, I think I would put half of this amount into a basic account with a debit card and use that for your spends. It will still feel like a credit card only you've got the funds there to pay for it (within reason of course).

Hope that helps

Poo

P.S. I think I would cut it up if I thought I'd start spending on it again!

savingmummy

Hi well done being debtfree!!!
I would cut up the card if you are not very good at budgeting.
You need to be really strict with yourself and only buy what you need from now on

Pop a note in your purse reminding you about being debt free!

How about saving now to distract you from overspending, i really enjoy saving now and love seeing the total buil up without a - infront