Best way to avoid debts

studentphil

What are the best ways to avoid debts in the first place?

Many people here have the odd £5000 loan for a car or holiday or something like that is this debt avoidable or will it just come up in day to day living?

nrsql

>> What are the best ways to avoid debts in the first place?
Outgoings < income.

>> Many people here have the odd £5000 loan for a car or holiday
Save to afford the holiday rather than save to pay the (more expensive) loan.
Car is a bit different - you might need a car so could justify the debt but don't get a more expensive one than you need.

Keeping rack of everything you spend is a good way of cutting down waste as it makes you think about what you are doing.

newmum1

My debt came from me thinking I could afford it , ive had the car, the clothes, great nights out, meals and champagne. But now all I have is just under £10,000 worth of debt and my memories (which are pretty good, ha,ha) oh yeah not forgetting my monthly credit card statement.
To stay out of debt only buy with cash and only spend what you have.

David_B_2

studentphil wrote:

What are the best ways to avoid debts in the first place?

Many people here have the odd £5000 loan for a car or holiday or something like that is this debt avoidable or will it just come up in day to day living?

A general rule for me is. If I can't afford it then I can't buy it.

I would rather save and live on a shoe string before buying a item rather than after but then being in debt.

No interest to pay by not having a loan plus if anything else happens then I not in total do-do and adding to my debt.

Not always possable for cars and mortgages etc so I save as much as possable and plan how I'm going to clear/pay the remaining.

janiegs

It's probably avoidable but...take for example our car. Had it from new, finance paid off, complete service history....totalled in seconds by some eejit not watching what he was doing (3rd party, not my husband, lol).

I have a 2 year old and my husband works away. On the 3 days I work, I don't have time to mess round in the mornings with a car that won't start...so decision time. Buy a 2nd hand car with the £4000 we were given for our car being written off, or go for finance on a new car with the £4000 as a deposit.

We now have a car loan, but in two years my husband will have paid for our new car and it will be ours (as long as we keep out of the way of any potential car wreckers). If we're in a crash again during the time it takes him indoors to pay the car finance off, we're stuffed.

You pays your money, you takes your chance.

studentphil

janiegs wrote:

It's probably avoidable but...take for example our car. Had it from new, finance paid off, complete service history....totalled in seconds by some eejit not watching what he was doing (3rd party, not my husband, lol).

I have a 2 year old and my husband works away. On the 3 days I work, I don't have time to mess round in the mornings with a car that won't start...so decision time. Buy a 2nd hand car with the £4000 we were given for our car being written off, or go for finance on a new car with the £4000 as a deposit.

We now have a car loan, but in two years my husband will have paid for our new car and it will be ours (as long as we keep out of the way of any potential car wreckers). If we're in a crash again during the time it takes him indoors to pay the car finance off, we're stuffed.

You pays your money, you takes your chance.

True, in a similar vain, I see people at university getting huge career development loans and you do just sort of wonder if it is worth all the debt and stress is will bring will be worth it.

immoral_angeluk

studentphil wrote:

What are the best ways to avoid debts in the first place?

Many people here have the odd £5000 loan for a car or holiday or something like that is this debt avoidable or will it just come up in day to day living?

Best way to avoid debt? Break your fingers so you can't sign anything or use a keyboard.

slowlyfading

immoral_angeluk wrote:

Best way to avoid debt? Break your fingers so you can't sign anything or use a keyboard.

:rotfl: :rotfl: :rotfl: :rotfl:
Great answer!

debt23

Hi,

Due to my terrible credit rating I cant get a loan - and its probably the best thing ever!

If I want something, I save up the cash and buy it - pretty simple really.

Yes, theres been a number of things that I have wanted to do over the last few years that I could'nt because I did not have the cash, but thats the price im paying now for the debt i ran up in the past.

Ok, Im lucky in that my mortgage is paid off etc - but when I need big things like a car I just go for the old £400 banger off the side of the road - such is life.

Its a bit of a come down from the Jaguar I used to drive! But dont underestimate the good old banger.

I fully intend never to borrow money ever again - but not sure if that will be as easy as it sounds once Im debt free and my credit rating starts to repair itself - but im gonna try!

All the best

debt23

janiegs

studentphil wrote:

True, in a similar vain, I see people at university getting huge career development loans and you do just sort of wonder if it is worth all the debt and stress is will bring will be worth it.

Hmmm, my husband was a goldsmith earning £13k a year. he did a degree in communications and electronics as a mature student and now earns about £36k a year.

His student loan is paid off, so yes, in his case, the money he borrowed was worth it.

I work as a civil servant though, and see people with degrees doing the same job as me for £14k a year...probably not so "worth it".

halloweenqueen_2

Stay away from credit cards!