A Thread for After Debt?

Laconic

I've been needing a thread like this! I was so happy to be debt-free this month that I went out and spent a bit... on hot air! I mean, what else can you call it when you go out, rent a car and go sightseeing all weekend with nothing to show for it but a bill and an addition to the Earth's carbon bill? It's sobering to realise that the attitude to money I had before getting into debt hasn't fundamentally changed: it just went into abeyance a bit while I sorted myself out and was waiting to be resumed.
I think I need MSE more than I ever did, so I can *keep* out of debt, get real savings and actually build a future.

166million

OMG I've just been accepted for a credit card. Wish me luck people
I'm gonna buy the groceries on it and pay back in full each month to help my credit score

JulieGeorgiana

166million Congratulations ������ I remember starting with a 'pay in full' credit card and it was scary, that was 2004 and now I buy pretty much everything on it. Only we don't count it as debt because every penny we spend on it we have in the account. This means I can pay it back instantly if required. If you wait until payday then I take it as debt myself.

We've been debt free 5 years and just got our first loan ������ we have saved for ages to buy a 'new' car, and one came up which was an incredible offer, so we bought it a few weeks ago. Only thing is the money is mostly tied up in a saving bond until June, so we decided to get a 1 year loan which costs the same as the interest on our savings (so costs us nothing) but gives us a buffer in case of emergencies while we pay it off. We're hoping that once savings is released we can pay it off early and be better off for doing it.

I'm terrified, even though I could just pay the whole thing off. I think I'm more worried of using the money in an emergency and not being able to pay it back... And it's not like I would just blow it.

Then in the last week the cat cost us £70 and needs £300 preventative procedure (not covered by insurance) and then the boiler broke twice (lucky I do have insurance because after it was fixed it developed a 2nd fault which was completely unrelated, and my gas supply from the gas meter to the boiler is low so I need all new connections)

So weird that I'm in debt, but it was the best option for us. Next January (it'll be paid off by then) we're hoping to have saved enough alongside to buy 2 new sofas and a huge diningroom table (as we are struggling on a 4 seater with 5 of us. We're knocking knees. The children have friends over and we just don't have the room. As long as I've saved the whole amount were thinking of taking 0% finance on the sofas just because it's there.

We figure it'll help the credit score.

We are also about to re-mortgage but I'm worried about that. My house has risen by over 10k and we own 30% of that higher value, but only 28% of what we paid. I'm hoping for a great rate on a 5 year fix, but only if we own 30%!! Never done this before, so not sure if I can get the product I want.

Anyway, my finances are driving me crazy... Too much stress!

But on a good note... Our garden wall has been replaced now and the kiddies can play outside without fear the wall will fall on them ��

Mort

Congratulations 166million, bambos & Laconic on becoming debt free
Mortgage aside the Morts have been debt free for 4 years and 3 months now. I have a credit card that buys fuel once a month and has a direct debit which takes the full balance each month. Budgeting is the way to go, ours is more relaxed than when we were on our DMP. The first few months were strange for me, the DMP had become a major fixture of my life and suddenly it went.

JulieGeorgiana wrote: »

Our garden wall has been replaced now and the kiddies can play outside without fear the wall will fall on them

Congratulations JulieGeorgiana the Health and Safety fairies will be pleased.

rising_from_the_ashes

Well done on all the DF 'newbies' :j

I'm still plodding away - spending more than I should and I'm afraid I have given in to a new car BUT I will be keeping this one at least 5 years! but I'm trying!!!


I'm another who uses c/cards - I buy absolutely everything on mine - and it's cleared in full each month.

I'm absolutely hopeless with cash - in one hand/out the other and I have no idea where it goes!



I must admit I do still wonder about the banks sometimes - I've been getting a message when I log into my account the past couple of weeks saying I've been pre-approved for a loan of £14,800 over 5 years ..... I keep declining and I logged in yesterday and it's now jumped to £18,600 :eek:

There's no way I could afford to pay that back - they must surely be able to tell that from the money going in / out my account each month!

JulieGeorgiana

Budgeting is essential even once debt free.


Scariest thing is how easy debt can be to accumulate... DH filled in a form online, 3 minutes later he clicked ok and the money was in our account instantly :eek:


I'll be glad come summer when it's gone again, even if it did make financial sense. Martin might say there is a difference between good debt and bad debt... but I hate all debt!!


I hope you're all having a good weekend

JulieGeorgiana

£18,600 :eek:

rising_from_the_ashes

JulieGeorgiana wrote: »

£18,600 :eek:

I know!!!

JulieGeorgiana wrote: »

I'll be glad come summer when it's gone again, even if it did make financial sense. Martin might say there is a difference between good debt and bad debt... but I hate all debt!!

I felt a bit like that when I got my car JG - the intention had been to pay for it BUT, if I took finance on it, I got £1,000 off the car

However, I looked at it, it just didn't make sense not to take the finance and lose that £1k - I guess that's what Martin means by good debt .......

I did take the minimum amount (and went through the heart stopping, nerve wracking minutes that I hate waiting to see if I was approved - that puts me off applying for credit anywhere more than anything!!!!) ..... and have since cleared it (I had to keep it a min of 3 months or I'd have had to pay the discount back) - and have to admit I feel a lot happier knowing it's mine & can't be taken away by anyone

JulieGeorgiana

Lol I'm glad I'm not the only one... We saved 3 years for a 'new' car (it's 4 years old) but I got it £1,5k cheaper then my local dealer, so it made sense to buy it before our savings pay out. I'm sure it being less then 2 weeks after Christmas made a big difference.

Anyway, after saving so long my hands shook and I felt sick as I punched in my PIN number... It was a lot of money. Oddly enough more nerve wreaking then buying the house!!!

Domayne

I've been debt free for nearly a year now and found that I find it hard to let go of a lot of my mse ways, like before I used to waste a lot of money buying breakfast and lunch at work, now I bring my own from home and have lunch out maybe once a month. I used to spend in excess of £500-£1000 A MONTH on a game, now I think that I must have been insane and won't spend more than 50-60 a month on a bad month- I'll never be completely frugal but I think I've found a nice balance between having a life and being mse.
It probably helps that I still have no credit to my name - but lately I've been thinking about getting a credit card to build my credit rating now I can trust myself with one and know that i'll no longer think of it as 'free money'