Shall I go Debt free or not? UPDATE- DEBT FREE !!!

Anastacia

Come on Lynzpower, you know it really.
Got to pay it all off and stash the rest where you cant get at it.
Think of savings in atleast 2 types, inaccessible (where you will secrete the big money for the future) and accessible , where you can save for birthday, chrsitmas etc.
If you get in the habit of moving money to savings account on payday (not if there is any left over at the end of the month but just as any other payment going out) and then lviing within your means then SUCCESS, without too much of the counting every half penny.

You can do it, i have complete faith in you.

Hope you enjoy your new career, by the way.

whatatwit

I like ZTD's plan.

When looking at the savings bit, don't forget about ISA's.
You can stick 3k in one now and another 3K on 6th April.
It's tax free interest and there are some not bad rates about.

lynzpower

Why do you want to do this? (This is not a rhetorical question)

Dunno, I was looking for more than one pro!

Bit of a red herring - you can service them out of these "savings".

I dont want to, I want my savings to grow and grow, not be touched for anything thats not something VERY important, like buying a house with cash... or a bit of land I have my eye on.

Do you really think you can fool yourself into thinking "Help I'm in debt and don't have a big wodge of cash stuffed into an account"?

Not fooling myself, but certainly, I wont be spending any of the money, I just want to make it bigger.


Yes - you could. But equally - from 1) above - you could start frivolous spending again. It that old thing of "Don't consolidate as you will always think there is an easy way out and so won't work at your spending" - isn't it?

I could, but I have no intention of doing so.

There are very few no-brainers in this world. Except me, early in the morning...

My opinion is this:
Pay off your parents - because you should.
Pay off LTSB - because it's interest bearing. ( WILL DO
Put the rest of the money (minus a small amount) away in a savings account. Set up a standing order to withdraw the amount needed to service the 0% debts. ( I reckon about the same as JSA?)
Use the "small amount" to live on until you get your first pay. Anything left over goes into that savings account. You do not touch this savings account.
Live on your wage. No more debt. Become a regular confessor on "How much have you spent"
Save from your wage. This is to go into a seperate savings account. If you need stuff, whether emergency or whim, the money comes from here. No more debt. ( I will if and when the bonuses come in)

When all the 0% things are finally paid off - then you can review your situation.

How does that sound?[/QUOTE]

Very helpful as usual :A

Storm

Hi Lynz,

I think what I would do is pay off everything now apart from the CC (and put the dosh away to pay it when the 0% runs out). That way the 'extra' bank accounts can be closed & the overdrafts cancelled on the main one, so you won't be able to dip into it again. If you're not sure how controlled you'll be this will hopefully remove temptation.

Have you done a new SoA now you've moved? Ideally if you could get your monthly outgoings covered by the £10K then your commission will be play/save money.

Congratulations on becoming debt-free, you're always an inspiration and support to the rest of us, I can't think of anyone who deserves to no longer be a wannabee more!

Mrs_A.

congratulations lynz, go with what you really really want to do,
if it were me id pay it all off now
regards
mrs a

dinkylou

Yep, agree with ZTD, sounded logical.

Or if you dont want to touch your savings, transfer an amount into a different account and service the debts with that until you are earning again. That way your savings will then be left to grow and you'll be sorting the debts.

Mrs_Sparkle

I would clear everything and make it easier to start proper budgeting with a clean slate. Well done hun, I can't wait to be in the same position!

Pobby

Well done lynz.I would do as others here suggest.Pay off parents and all interest bearing accounts,put the remainder away AND DON`T TOUCH IT!

Hope all goes well for you.

toontastic

How long are all your 0% interests 0% for ? If it's say August work out how much money you will make from interest if you don't pay off those debts. Then decide if it's worth that to you. Me, I'd just get shot of my debts and then learn to budget.

Well done.

ZTD

ZTD wrote:

Why do you want to do this? (This is not a rhetorical question)

Dunno, I was looking for more than one pro!

Right - so we can scratch that one then...

ZTD wrote:

Bit of a red herring - you can service them out of these "savings".

I dont want to, I want my savings to grow and grow, not be touched for anything thats not something VERY important, like buying a house with cash... or a bit of land I have my eye on.

LYNZ! Think *logically*! Doing it my way will mean you will end up with MORE MONEY, which will enable you to buy more.

If you don't believe me - it's time for you to "Sweat with Excel"...

Though don't be buying land on a whim either...

ZTD wrote:

Put the rest of the money (minus a small amount) away in a savings account. Set up a standing order to withdraw the amount needed to service the 0% debts. ( I reckon about the same as JSA?)

Depending on the amount, you may make more interest than what you withdraw - so it will slowly rise.

ZTD wrote:

Save from your wage. This is to go into a seperate savings account. If you need stuff, whether emergency or whim, the money comes from here. No more debt. ( I will if and when the bonuses come in)

It's not going to be a matter of your bonuses. It will be a matter of whether your income exceeds your expenditure that month. Don't make the mistake of "spending up to" your income. Some months it will be unavoidable, but "it ain't neccesarily so".

lynzpower wrote:

Very helpful as usual :A

Oh, and for extra cash - and basically so they think twice about doing it again - take your former employers to industrial tribunal.

"We wouldn't give her a job because she can't cope with stress from the public."
"What does she work as now?"
"An estate agent."