Debt Free? then what?!?!?!

magyar

Yeah that's probably wise. I suppose at the end of the day, it's only petulance which makes the bank close your account; they've realised you're a 'troublemaker' who doesn't fall for their tricks.

do_it_today!

Hi all,
at the begining of this month my debt (excluding Mortgage) at £12,280

since I last posted details I have....
1) sold 4 books online netting £24 :j
2) done some tarting and moved £7,500 of balances to 0% and 2.9% have 3) sloshed £300 from isa account £55 from dollars hanging around house
and lose change £7 towards Card 1
4)started meal planning amazing how much food is hanging around the
house yet still continue to buy more!!
5) opened new bank account so I can proceed to claim charges from my
current account
6) have given notice to quit the gym
7) dumped slimming world
8) abstained from magazines
9) have gone to the library for books not the bookshop
10) changed utility provider - but will still wait 6-8 wks to change to DD :rolleyes:
11) have discovered Netto
12) am looking into growing veg for next year
13) have signed up for mystery shopping - not done an assignment yet
the forum has been fab with so many different interesting hints and tips so will crack on :T

magyar

Very well done! Hope it all continues to go well for you.

djm1972

do_it_today! wrote:

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 think considering your mortgage as a "real" debt is being a little hard on yourself.

If you are in the situation where the INTEREST component of your mortgage payment + ancillary costs of running your home (ground rent, maintenance etc.) are LESS than you would be paying in rent for the same standard of living; then YOU are in a stronger financial situation than somebody also debt free but renting a similar property.

magyar

That's a very good definition.

Another way of looking at it is your net worth, i.e. the total of all your assets, debts, cash, property value. If you were to sell your house, it would cover your mortgage, plus hopefully leave you some money (equity).

It's unlikely that you could sell all the 'things' you've bought on credit cards and repay the debts.

Of course, it's always nice to pay your mortgage off, but it's better to define debt in terms of financial usefulness. If you can borrow money and be reasonably sure you can earn more with it than you are paying in interest, it's a good financial move. Your definition of "reasonably sure" depends on your appetite for risk...

roxy7699

well done on all your changes. You took the bull by the horns!

slowlyfading

well done, you're doing fab!

do_it_today!

Thanks for all your responses DJM1972 that is a good point you have raised but ultimately for arguments sake if interest rates rose to 12% I would be done for!!! and in a worse position than someone who was renting with a similar SOA to me, to compound this situation if negative equity returned and the value of my house fell by say 40-60% then I'd also be scuppered. If I had a smaller or no mortgage - £20-30,000k then it wouldnt impact me as much than £128,000K or even £235,000 going up to 12% :eek: Magyar yes I have equity in my property and understand the principles of good and bad debt and net worth I would feel far better though if my net worth was bigger than my overall debt (incl house) at the moment it isnt... but getting rid of the bad debt is a good start! so will plough on! :T thanks all

do_it_today!

Hello all :j

January Update
have been really happy with progress so far here is my debt update:

(1.9%)1Card £60 £800
(16%) 2Card £1990 £0
(10%) 3Card £790 £0
(0%) 4Card £960 £836
(6.9%)5Card £1700 £1798
(0 %)6Card £4600 £4703
(1%) 7Card £1900 £1800
(12%)Store £140 £130
(0%) Cata £140 £66
Total £10133

The book selling is nice and steady - meal planning is going good first repsonse bank from one bank re charges.... have to go now will update further later!

magyar

Well done! Keep it up!