A Thread for After Debt?

thrifty_fifty

What a fab thread. I was just thinking the other day that we could really do with a 'life after debt' thread. I have 7 weeks to go until my debt free date.

The dilemma is this, the last debt that I'm paying off is a credit card where the account closes once the debt has been paid off. I decided to suspend this 2 years ago to avoid higher interest rates. I know I won't rack up the debts again, but I don't know whether I should or really want to have another credit card ever. To be honest the thought of applying for one, and filling out an application form, and maybe even holding a credit card is terrifying. But maybe I need to get over the fear.

Anyone else been through this?

JulieGeorgiana

thrifty fifty is sounds like you want to keep the account open 'just in case of an emergency' and I know where you are coming from.

How long would it take for you to build yourself up an emergency savings pot? Because that would act as the same kind of buffer as keeping your card open. If you are worried about temptation of dipping into your emergency savings then try a 'regular savers' where you set aside a set amount, and if you don;t touch it for a year you get a REALLY good interest rate, but in the event of a real emergency you can empty it out (loosing your high interest) but you can at least access it immediatly.

First Direct is offering 8% regular savers right now for deposits of £25-£300 a month.

The great thing about being debt free is being able to count on yourself and not the bank in the case of emergancies. I started my £300 regular savers last year and it's due to 'mature' in a few weeks with £124 interest (£156 before tax)! And now I have £3,600 plus interest saved up.

Ps. I am re-opening a regular savers and re-investing the same money again this year. And DH is going to open himself one too so we can double those savings!

No credit card needed

Little_bit_dizzy

JulieGeorgiana wrote: »

First Direct is offering 8% regular savers right now for deposits of £25-£300 a month.

That's a brilliant rate, thanks for the tip JulieGeorgiana.

Since posting last night I have decided that I am going to set myself some 'real' targets for my savings plans and re-do my budget for the household stuff.

I'm also going to tidy up all my bank accounts. I have far more accounts than it is humanly possible to ever need and with 7 different banks, which is just silly. I don't like having all my eggs in one basket but 7 different finacial institutions is pushing it by anyones standards

I'm off to reinvent my speadsheets!

JulieGeorgiana

Little_bit_dizzy wrote: »

That's a brilliant rate, thanks for the tip JulieGeorgiana.

Since posting last night I have decided that I am going to set myself some 'real' targets for my savings plans and re-do my budget for the household stuff.

I'm also going to tidy up all my bank accounts. I have far more accounts than it is humanly possible to ever need and with 7 different banks, which is just silly. I don't like having all my eggs in one basket but 7 different finacial institutions is pushing it by anyones standards

I'm off to reinvent my speadsheets!

:T I am so pleased! I am still working on my finances, I want all my ducks in a row when roo arrives (too many animals there!):T

Wow! I have to admit I try and keep the number of accounts and financial institutions to a minimum!

Yes, I found out about First Direct savings on here, and the same money would earn me £70 interest in an ISA!

I am trying to work out what to do with the £3,600 while it's sitting there reducing by £300 a month... It seems I could make more interest on it... but how... hmmm!

girlatplay

Hi everyone

I hope you don't mind if I come along for the ride. I only found this thread this morning so I haven't had a chance to read more than the first few posts but I'm sure this is what I have been looking for. I'll pop back later.

Gap

JulieGeorgiana

Welcome GAP I hope you find this thread useful and supportive now you're debt free

Marco_Panettone

I'm not *quite* there yet, but will be in the next few months. I intend to maintain my Standing Order amount (currently going to my credit card) but send it somewhere more useful instead, ideally a high(ish) interest regular saver account. This way nothing actually changes for me. My budgeting can stay the same and my frugal life can carry on but to my benefit and not that of Mr Halifax plc.

I don't have specific savings goals, but I'm looking forward to maintaining my spending goals (as little as possible!) and seeing the numbers go up instead of down!

Little_bit_dizzy

JulieGeorgiana wrote: »

I am trying to work out what to do with the £3,600 while it's sitting there reducing by £300 a month... It seems I could make more interest on it... but how... hmmm!

Have you thought about Premium Bonds? I know not everyone likes them because you might not get anything but equally you might get something... Plus any winnings are tax free! It's a bit like doing the lottery but you get your money back if you don't win.

Ours are set up so that any winnings automatically get re-invested (immediately give you more chances of winning) and whilst some months we get nothing other months we do.
DH had 3 x £25 prizes in October with only £2500 of bonds

JulieGeorgiana

Marco welcome! It sounds like your goals are sensible... it'll stop you falling into that trap of 'overspending' good luck x

Dizzy I don't think I like things like that. I am very OCPD, I need to know I am definatly going to make money. I don't even play the lottery!

Little_bit_dizzy

JulieGeorgiana - They're not for everyone, if you want the guarantee a 'proper savings account' is certainly better.

Ok, I've just closed one savings account that had just 11p in it (since 2009!) with one bank and a current account and an 'emergency' credit card with another.

Down to having accounts with just 5 banks now. I think I need to cull a couple more...

Hello to Marco, Gap & thrifty fifty