finally debt free now im scared

fifidfw

Hi All.

Well, I've only gone and done it. I have today, paid my last payment on my DMP. I feel like a huge weight has been lifted from my shoulders and all the clouds that filled my head have now cleared.

The reason behind today, was the very recent passing of my dear dad, came out the blue. No illness or anything. It was then i realised, that i needed to pay everything off as fast as i can.

Thanks to the advice and ideas from all you lovely people on here, i cut back as far as i could, stopped my nights out, stopped take aways (that didnt please my children none) and put away all the extra money i saved till i had enough to clear the lot. And today, there was enough and i have finshed my DMP a whole 18 months early.

The reason i'm scared is that i will now have £500 per month extra and fear that i will revert back to my old ways. I have vowed to myself that i will not have any other form credit but you just never know what is around the corner.

Thanks for reading

FinanciallyUnsavvy

Well done! :j It's so inspiring to know you managed to clear your debts 18 months early - that's amazing!

Obviously you can relax a little bit, financially speaking, but keeping up some of the frugality would be good - perhaps out of your extra £500 a month, put a big chunk away in savings each month, so if an "emergency" comes along, you don't need to seek credit to help?

You definitely deserve a treat for yourself first for your hard work... :cool:

Tixy

Well done you. thats great news.

Seeing as you are used to paying out the DMP amount at the moment - what about setting up a savings account and paying a standing order across every month?
It doesn't need to be as much as your DMP amount, after all I'm sure there are some places you want to be able to now spend a little more, but if you set up a savings account for say £300 a month then that will soon build into a nice emergency fund, and you can just tell yourself you only have an extra £200 a month to spend.

Its easy to go wild in the first few months of extra money so if you set up savings straight away you never get used to having that to spend (if that makes sense).

freshstart11

wow - well done you are def an inspiration! x

lantanna

Well done, I would like to fast forward my life to this point!

I know it must be daunting but I really don't think you could go backwards - yes I think what the op said was a good idea - save some and give yourself an allowance of it. You've come to far to slip back to old ways - £500 a month is a lot - just think what you could do with that a month in terms of savings etc

TakingControl

Well done :T:T:T Maybe set yourself another target, i.e. an emergency fund and a once in a life time holiday fund? I have already set my target for when I am finally DFD, so it is easy to continue as I am now

rich11

Fantastic news well done.Now head over to the savings and investment board

Maybe start a savings goal thread to help keep you focused?

yellowcrocus

Wow! Well done you! :j

When I am debt free I intend to spend pretty much all the extra cash on the one thing that is sorely lacking from life at the moment...holidays! I intend to put all the money in an account and use it to finance a few trips every year.

Think of all the places you could go....:D

GreenSaints

That is fantastic! Don't forget to add yourself to the Debt Free Honour Role

I agree with others - save £300 a month and then spend the rest. Sounds like your children would like a takeaway!

Congratulations again!

Oli2k

Well done! Excellent work :beer:

MFWannabe

Congratulations :j

Totally agree with Tixy. Give yourself a goal of something to save for, i.e 1k in emergency and then maybe a holiday; it'll spur you on to save even if you end up using the savings for something else

Firstly treat yourself to something nice; maybe a takeaway as a special treat for the kids?:)