Debt Free? then what?!?!?!

do_it_today!

I am not Debt free YET but am considering remortgaging so I can be this in a few weeks (£12,000) - but this is not really debt free (just delaying it a bit) Anyway the cards will be closed and that will be the end of it - or will be the end of it just for now.... or until next time??

I have had debts before not so big but they were a burden and then I managed to pay them off.

My point is how will things change how will it not happen again? we all feel at first that our commitments are manageable but then things change your income/commitments/feelings/

I work to pay my bills and fund my lifestyle basically but I'd rather spend my time doing other things than working fulltime. In jobs I end up hating :mad: I guess its about making choice to change the way we spend and consume forever - not just while we are trying to save money. What Im saying is I would like to downshift have much less outgoings/ live simply chose the work I want to do, have a little or NO mortgage whatsoever :T but at the same time be able to see places from time to time.

Has anyone managed to achieve this and how long did it take?
Is anyone working towards this and how is it going?

immoral_angeluk

Once you're debt free you'll have a greater appreication for how to do things without getting into more debt. You don't HAVE to get more debt to do anything... want a holiday/new tv/etc then save for it! Or if you are going to get more debt, realise how to do it in the safest most efficient way but using 0% deals but most importantly PAYING IT OFF straight away or before a deal ends so that it doesn't mount up and become a debt PROBLEM again. It's hard work getting out and I'm sure by the time you're debt free the last thing you'll want to do is get yourself in a mess again!

immoral_angeluk

The trouble is remortgaging isn't being debt free.. it's just moving your debt so you'll still owe the same (if not more.) but just have less creditors to deal with. Works the same withconsolidation loans so make sure you're very careful not to end up in the same position again by thinking you're debt free when you're not! A mortgage is a massive debt but noone seems to count them when it comes to being debt free!

Sinkingindebt_2

I would avoid re mortgagin if you can, a have heard stories where people's debt only gets worse not better.

Maybe we can help with an alternative?

tiff

We remortgaged and now we are in debt again, mainly due to not managing money properly, not by extravagant spending.

I refused to remortgage again so now we are doing it properly by setting a budget, making sure we dont go over it and reducing our debts that way. Hopefully it will become a habit and when the debt is paid off we can then save some money.

magyar

When you're truly debt free (and I'm not!) then I think you've already changed your life.

You're already
- saving for things you want but can't afford
- avoiding paying more for things than you have to
- winning the battles against the corporations because it's your money
- living within your means (i.e. spending no more than you earn)

If you live like this you will never get into debt problems; then you'll just "know" what you can afford and what you can't.

[Sorry that sounds ever so evangelical!]

Verbatim

I'm afraid remortgaging is increasing the amount you'll have to pay bak because interest is paid over the lifetime of the mortgage and therefore considerably more in total. Also the debt will now be secured on your home which means that if you can't keep up payments for any reason in the future your home could be at risk.

amosworks

It's a ball. You get to take advantage of all sorts of stuff and you have money to invest in schemes that also play the system (like you did when in debt) but on a bigger scale. Money attracts money. Like you can afford to do R&R for a laptop at Tesco (which requires an outlay of the £400 to start with) rather than sticking to the odd DVD and stuff.

DF is like in debt but on a bigger scale

do_it_today!

Whenever anyone says to me wow you own your own house! I correct them and say yes me and the bank its true you are not really debt free until the mortgage is dead.... Ultimately this is what I would like...
I am cautious about remortgaging to consolidate as it is not really killing the debt - however my fustration at work and keeness to start a family are tempting me to bung some of the 12k in the re-mortgage but this is instant gratification really... a better way would be to make cut backs, sell stuff, get second job and maybe a lodger

My darling car could go... £6000
Isa savings £300
Books & stuff on ebay £80-100

SOA Time..... will be back

OneSpike

Hi. Once we're debt-free (sometime around the Second Coming at this rate...) we will be living within our means, with no exceptions. We're both totally allergic to credit in any form now. I would sell up and use the money to pay off your mortgage (if it would) then downsize. SIL did this but relocated to France to run a gite. Hasn't quite worked out as they'd hoped and they're now looking about for work to fund the renovations, but they don't have a mortgage at least.

Depending on your circs there are options such as B&B or having a lodger in the short term, either to fund setting up somewhere else or helping with debts just now. Definitely wouldn't work for everyone, but it's an option, in theory. I guess the other way is to sell up and live in a caravan or something, but I think I'm getting a bit carried away now! Once you've considered what your options are one course of action might leap out at you.

Storm

I'm only just starting my DFW journey, but what I'm hoping is that by the time I've got there I'll be so used to living on my budget that I'll find it easy to stay there. I have got another goal when I finish however which is to save for a deposit on a flat, so I'm hoping that will keep me on the straight and narrow.