The additonal Benefits of Being Debt Free

jonjamie1970 Posts: 488
Debt-free and Proud!
edited 25 January 2011 at 12:56PM in Debt-free wannabe
OK so I'm not debt free yet but nearly there. I realised today how much more is available to someone with cash or no debt, I will make some examples of these benefits that are rightly or wrongly not always within reach or available to those of us that have low or little funds.
  1. Car tax, paying annually rather than in 6 months each time
  2. Car insurance, save up to 26 % in interest by paying in 1 sum rather than installments.
  3. Obvious - Bank charges
  4. Paying for fuel on a credit card and earning points, pay the complete balance next statement
Any more you can think of ??


  • LAM2011
    LAM2011 Posts: 1,432
    PPI Party Pooper Debt-free and Proud!
    edited 25 January 2011 at 11:49AM
    hi - thanks for that - you forget about those kind of things whilst you are just trying to get by. I am sure there are more but my head is a shed today. I just cant wait to have some money for me instead of 'wasting' it on ccard interest. :D
  • Being assured you'll have some money left at the end of the month
    1. Looking forward to mail
    2. Not having to wait till payday to buy stuff
    3. A large unexpected bill has you shrugging and saying "Oh well, that's why we have savings"
    4. Realising you have £50 in points on your nectar card :rotfl:
    5. Sleeping well
    "I don't want to sound cold and un-caring, but I am those things so that's the way it comes out" - Bill Hicks
  • the main point for me would be knowing that i do not owe anyone any money.
    and that all my wages will be going to ME, and me only.

    at the moment, when i get paid about £400 comes straight out, and it really is alot of brass and especially when you cant see nothing for it.

    tbh, i have been paying my loan nearly 4 years and its just 'normal' for £180 to come out every month.
    i will probably faint when i see a full months wage and knowing nothing will be coming out lol.
    Old Account Recovered
    Debt at LMB April 2009= £14,980
    Debt free Sometime in November 2013
    £69k left of 90k Mortgage - Overpaying by £270 a month
    Current Savings = £13000
    MSE turned my life around years ago
  • Not just car insurance, I renewed my contents insurance and not only did I pay it all in one go, I also got it for less than half of the renewal from previous insurers!

    Also, although knowing that I can afford to pay for utilities on receipt of bill now, it is so satisfying to be able to make a payment in advance and ultimately have a large chunk of the bill paid before the bill comes in. I refuse to set up a dd payment as the reconciliation process, when it is done, is painful. This way I can pay the smaller bills when they arrive, but I am ultimately controlling the big winter bills, not the utility company.

    It is also very nice knowing I can decide how to pay for my new car this year, do I want finance of some sort, or do I simply wait until the end of the year and pay in cash. Having started the exercise, it is disgusting that if I place a 50% deposit and want to finance the balance over a maximum of 2 years, ideally 1, the interest is horrific in comparison to taking out finance over 5 years - I don't want to be lumbered with debt for that length of time!!!!
    A smile costs little but creates much :)
  • A large unexpected bill has you shrugging and saying "Oh well, that's why we have savings"
    This is the one I can't wait for - not living in dread that something is going to happen that will totally cripple you!

    Also: being able to put all the money i waste on debt repayments into high-interest savings and watching them give ME money rather than the other way around!
    :D DEBT FREE 3rd Sept 2011 :D
    (Debts at highest £15.8k Nov '08)
    Student Loan paid off July 2014
    First Direct Regular Saver #2: £2700 ** Santander 123: £13,106
    Car Insurance/Tax Fund: £305 ** Present Savings: £525 ** Disneyworld Fund £100
  • What a great thread! It's so easy to forget that there is all this to look forward to at the end of it sometimes, it just seems like a never-ending struggle!

    But I think for me the paying the car tax and insurance anually is the big one, that and no more anxiety and sleepless nights - just being able to relax a bit instead of feeling like I'm always playing catch-up!

    Thanks for the reminder that there's lots to look forward to in the end!
    Pay off as much as you can in 2011 challenge #116 £394.24/£6722.58
  • andymc29
    andymc29 Posts: 462 Forumite
    For me here's a few:

    Going out for meals without feeling guilty for spending money
    Not being worried when taking your car for a repair incase you need to use your credit card
    Not living from paycheck to paycheck
    Having money in savings without thinking it should really be paying off debt
    Sleeping much better
    Being able to focus on things better without thinking about debts
    Better relationship with my GF as she hates the idea of debt
    Buying the odd treat for myself without feeling guilty
    Not feeling like a failure
    Bank Loans: [STRIKE]£25000[/STRIKE] £0- Barclay Card 14%: [STRIKE]£2500[/STRIKE] £0- Student Loan: [STRIKE]£12,500[/STRIKE] £0
    Current total [STRIKE]£40,000[/STRIKE] £0:j (100% PAID OFF)
  • TMoose
    TMoose Posts: 267 Forumite
    I agree with most of the above... although since I don't own a car, I don't have the pleasure of buying car tax!

    However, having been DF for a year now, I think the absolute joy of it, for me, is being able to log into my online banking and see positive numbers. That grow. And that are ALL MINE!!!

    That and knowing that I now have the funds to enjoy the decision of "what should I spend it on? (if anything) A holiday? A load of new books? Invest it? Save for a house? Tickets to Glastonbury?" The options are endless, and deciding is FUN!
  • Yeah that's a much better decision to have to make than "what debt shall I pay off first?" lol.
    :D DEBT FREE 3rd Sept 2011 :D
    (Debts at highest £15.8k Nov '08)
    Student Loan paid off July 2014
    First Direct Regular Saver #2: £2700 ** Santander 123: £13,106
    Car Insurance/Tax Fund: £305 ** Present Savings: £525 ** Disneyworld Fund £100
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