Worries about a debt free future

lynzpower

Ive got a sofa on interest free credit, and luckily I got some bank charges back so paid it off in one hit otherwise it was going to be what a surprise, 28% and could be paid off in full on the 12th of never.

StratApproach

Many years ago I has a good salary and therefore took out big loans - quite happy at the time having a nice new car, holidays etc.

Now being self-employed, each month the credit card is paid off in full, some money in the bank to enable me to live off for 3 to 6 months if necessary, and as a christmas present I'm paying off 1.5K off the mortgage (sad but true!)

The only loan I have is on a sofa from dfs which they would not negotiate for cash but instead of 1 year free and then pay over a number of years. I wanted 2 years interest free credit starting from the day I bought it. However, it is a pain with how much 'rubbish mail' they sent through the post.

Worth noting.... Rather than taking out a new car loan I kept my old car for 6 years instead of 3 years, saved for three years and then bought a really nice car for cash which will last another 6 years.

So.... low mortgage, car paid for, one tiny interest free suite loan and no credit card debt = happiness.

Interest free I like (if I've ring fenced the money in the bank).

Debt i.e. paying some else (in interest) my hard earned money I really, really hate.

StratApproach

roswell

I think the problem is the word debt,, and the confusion with credit. Im not sure who said it buy someone in history said " Rich people get credit poor people get debt"

My idea of debt is money i dont have that costing money, Credit would be an advance (interest free) to be paid back at a later date from money you already have,

if you work by that you shouldnt go far wrong.