getting into debt in the first place

want2bmortgage3

I am just writing to offer some advice as I am close to clearing all debts other than my mortgage.

I never really needed to get into debt, it first started with the offer of interest free credit cards for purchases. This meant I could buy things and not have to pay for them for several months or even years.

So straight away it was easy to lose track of what I was buying and as long as it was within the credit card limit I was happy.

Then when the interest free period ran out there was the easy option of opening a new card and transferring the balance, so for another x months I had an interest free debt and only had to pay back a small minimum payment every month.

It meant I could do up my flat sooner and not have to wait to buy things as and when I actually had the money. When I had a new kitchen/bathroom, carpets, furniture, white goods etc to buy this was very convenient.

Later on though I used this facility to fund betting accounts and this led inevitably to losses and chasing losses and several thousands of debt.

Add to this the fees that are now added for transferring balances and it doesn't seem such a good deal.

I am almost free of cards now, just the one balance remaining, and doubt I'll ever open another credit card again.

So my advice is, other than a mortgage, don't give yourself the facility of a credit card/loan, get by with a debit card, it's all you really need.

rising_from_the_ashes

Congratulations on nearly being DF!

How long until you've cleared the last one? (It's such a relief once they're gone).

I have to say, I love my credit card - I buy everything on it (like the idea of protection against things going wrong) but I do keep track of every spend in a notebook - and it is cleared in full each month.

It also means I've got money sitting in the bank each month (earning a tiny bit of interest) which is used to clear the card at the end of the month.

merlot123

I use a Tesco credit card for everything and repay the whole balance at the end of the month (its 0% for purchases at the moment). Just remember to set up a direct debit in case you forget to pay on time. I bought something online a few months ago, and the company went missing, Tesco were fantastic, sent out a letter, I signed it, got money back, no problems, wouldn't be without a credit card, but discipline is the key word.

The extra points are useful.....every little helps!

Martin says not all debt is bad debt.

You just have to be disciplined. (It took me years to learn how to discipline myself though, hit rock bottom, came on here years back, repaid the debt not easy and now debt free).

dark^knight

I do agree about credit cards. It's very easy to get the credit card debt, but difficult to pay it off.

I popped in to Sainsburys yesterday, and as I leaving, a Sainsbury Bank salesman gave me the sales pitch for the Sainsbury Credit Card, which apparently would allow me to earn nectar points. I told him I just don't do credit cards. So he says 'but you could earn nectar points'. So again I said I don't use credit cards, and then he said 'OK'.

Although, what I told him was not strictly true. With my previous job I had an American Express card for expenses. And when I left that job I did get an American Express Cashback card, however, the balance is paid off at the end of every month, so I have never paid any interest this...but I do get cashback.

In my view credit cards give a false sense of security that you have money to spend, when in reality everytime you use it you are borrowing money at a high rate of interest from someone, and then paying back a lot more.

want2bmortgage3

Thanks for the replies. I have one credit card left with a balance (barclaycard) and another (santander) with a small £250 limit and I have destroyed the card for it. Think I will pay off the barclaycard then close that, and just keep the santander account open and wait for a new card to be sent (whenever the current one expires). I guess its ok with a small credit limit, and I hope they wont be increasing my credit limit automatically, that sort of thing is bad news.