finally debt free now im scared

determined_new_ms

hey op congratulations! I know where you are coming from as I felt worried when I became df in Oct 2010, because suddenly I started spending loads of money. In reality it was just the things I had put off buying - a new mattress too, a holiday, some new clothes. But once I'd bought them, I continued to be frugal, save between £100-500 pm into long term savings, set up a number of savings pots for xmas, birthdays, emergencies, car etc. Still am like it now, some months I spend more, some I save more.

Funny thing is I found becoming df a bit of an anti-climax as hard as that is to believe! I'd spent so long with that as my goal, once it was done its like "oh is that it!"

pennies_from_Heaven

Hi Op, I know how you feel too - I have one last payment on my last loan next month, and I'm already jittery.
I'm scared that I will slip into my old ways, this last month I bought a couple of things with the surplus that would have usually gone on the other debt, and felt really, really guilty.
I'm going to set up an s.o. I think too as others have said, then tell myself its another debt, that puts me back in my comfort zone! lol

DebtFree2012

DVardysShadow wrote: »

That is £500/month into a savings account and you become your own lender when you need credit for something big. As long as you only borrow from yourself, it does not matter if you slip back into your old ways .... because it will all be your money.

That's a fantastic way of thinking - nice post.

quantic

DVardysShadow wrote: »

That is £500/month into a savings account and you become your own lender when you need credit for something big. As long as you only borrow from yourself, it does not matter if you slip back into your old ways .... because it will all be your money.

This is what I do, I actually feel guilty when I dip into my "Savings Overdraft" even though its my money and I'm still way in the plus. I guess its hard to get rid of that feeling even though everything is okay.

chappers

Indeed we are fully reformed now, but to take temptation away when we first became debt free, we opened a savings account with a building society whos nearest branch was 10 miles away and the first thing we did was set up a SO into it each month, the next thing we did was to chop up and throw away the caspoint cards and we didn't even open the online banking passcodes. That way whenever we needed money from that account we had to think seriously about whether we really needed the money as it was such a faff having to drive 10 miles with various forms of ID etc to take the money out.
We pretty much do the credit thing with our savings now with the rule that anything "borrowed" from the savings must be paid back before borrowing from it again.

Oh sorry congratulations to the OP and would just like to add one thing, dont save and then pay off debts if the debts are accrueing interest, unless the savings rate is above the debt rate. better off to be paying that money directly off the debt each month.

Foggy

Interesting stuff this that I can relate to. I had debt for years when money didn't seem real. It was just statements showing how much I owed. I would hand over the credit card and always have a sinking feeling that I was going down further. So it got to a point when I was withdrawing cash on the card (I know I know) and hoping I could pay back the minimums without exceeding my 3.5k overdraft. I would get paid and it would just make the overdraft less for a week or two.

In the end I sold my house, paid everything off and moved in with a friend for quite a while. It was so strange not being in debt but effectively having lost my home over it. So 15 months of saving (for a deposit) completely changed my outlook on money.

It became very real. I went from from jam today to waiting until I could afford something I wanted. Quite often by the time I saved up for something I realised I didn't really want it.

Anyway it is a strange feeling going from debt to no debt. Personally I am much less likely to waste money as it's mine rather than the old days of borrowing someone elses.

It's quite funny, my 12 year old is turning 13 soon and her bank sent her a letter saying she can have a cash card soon. She said 'It's not one of those debt cards is it Dad?' I mentioned ages ago that that is what credit cards should be called. Financial education at it's best....