Worries about a debt free future

judi24

My signature says we will be debt free by Dec 2008. I reality this could be much earlier (I have recently got a new job that pays alot more and we got almost £5000 in bank charges back:j )

The problem is that when i talk to my OH about being debt free he starts talking about waht to buy/spend on next - New car, new windows, holidays etc.

Every advert for new couches that come on tv makes his eyes light up with longing:eek: (not sure how normal this is!!!!)

My problem is he is under the impression that interest free credit is ok and doesn't constitute as debt.

I am just asking what everyone's opinion is of interst free credit.

saubryn

If you have the money to buy outright whatever you're getting on interest free credit, then I see nothing wrong with putting that money in a high interest savings account then taking out the credit.

Just make sure you won't be tempted to spend the money in the savings account, and that you really do pay it off when the interest free term is coming to an end!

Otherwise, I'd probably stay away from any form of credit....

Broken_hearted

Debt is debt and if you miss a payment your in trouble.

elsien

i only do credit if it's interest free, but it's still debt, and I always make sure I can pay if there's a problem, like I'm off sick, or made redundant.
I find it a bit concerning the number of adverts that say buy now and don't start paying for 12 months. It must make you lose track of things, then you get hit by lots of payments that kick in at the same time.
If it's too easy, there's got to be a catch somewhere.

Megatimbo

Hello judi24, interest free deals are good not only for you but for the retailer as it gets the stock moving through,and like the poster above if you put the money away in a high interest account may make you a little bit of interest,over the loan term.
I dont know if its me but i usually see something i would like in a shop window but lack of cash prevents me from going in and getting it there and then,and i say to myself i`ll buy that when i have the money,thing is when i do have the money the article i wanted usually has lost it appeal and i dont want to spend the cash this is i can recall what it was like being broke and so puts me off the purchase.

Myself and the wife always say remember xmas 1990 we were so broke i withdrew £50 from the cash machine just before xmas and that had to last while 25th january(was paid monthly at the time) we laugh about it now but that was our experience we will never forget

Regards M

nearlyrich

I'm sitting on a sofa with my feet on a carpet that we bought on interest free credit with no repayments till June 2007, the money is in my high interest account and it's in one called lounge fund so it won't get used for anything else in the interim. Being debt free means you can save up and choose the right way for you to buy stuff that you want/need.

judi24

Thanks for your replies. I suppose I am frightened of credit of any sort now. I know how easily things can spiral out of control and i'm worried that 2 spendaholics can be easily tempted by interest free deals.

I know being debt free is still someway away but you can't help thinking what you will do when that day eventually comes.

lauren_1

Credit = Bad , any shape or form, BAD BAD BAD.

Willsnarf1983

lauren_1 wrote:

Credit = Bad , any shape or form, BAD BAD BAD.

is it really thou, heard of stoozing, and as people have said if they have the money why not take the credit as long as they are very careful!

Will

roswell

Interest charging credit = bad ....
interest free credit and cash in account earning interest = good.
Mortgage = bad .... value more than mortgage = good

Mrs_Sparkle

lauren_1 wrote:

Credit = Bad , any shape or form, BAD BAD BAD.

I don't agree. But if you use 0% deals to benefit your situation you have to manage them properly- as other people have said have the money put away in a separate account waiting to pay back rather than having to find the money later on. Credit can be a good thing if used correctly and responsibly.