Never again!

frugalpam

Another light bulb moment for me along my road to becoming debt free: no more loans for me!
Reading through some of the threads here tonight, I've realised yet again what a pointless exercise it was for me, taking out loans to deal with debt - especially consolidation loans. It was all part of my headinthesand-itis, never working out just how much interest I was paying along the way. More importantly, I wasn't facing up to or tackling the reasons for getting into debt in the first place, and I also regret not having taken some financial advice on dealing with my debt.
The road to becoming debt free has been an amazing journey for me - I've learned a lot about myself. I am proud to have confronted a number of issues, and proving to myself that I can budget and economise and live within my means.
So no more loans for me - I wouldn't personally even take out a 0% interest loan in the future (and that would be a long way off due to my credit history). I regret ever having got into unmanageable debt, but plan to move forward in control of my finances, for the first time in forever! That makes me feel pretty proud.

Nite all,
Pam

Rafter

Pam,

Good for you.

Taking out more loans because you are struggling to meet debt payments is seldom the best solution.

There is also some research to suggest that 20% of people are incapable of managing debt and living within their means and are therefore vulnerable to the money being thrown at us every day to buy stuff.

Using credit may not be right for you. For others, the golden rule is only to borrow to buy stuff that has real value and that you could sell if your circumstances change.

So, having a mortgage to buy your own home is fine. Borrowing to buy a car (as long as the loan is <5 years so the loan isn't worth more than the car) is OK. Even borrowing modestly to refurbish your home, put up a conservatory or something like that is ok as long as you are paying it off fairly quickly.

If you find yourself borrowing to pay for holidays, christmas, clothes, food etc then alarm bells should start ringing because you will have nothing to show for your debt and if you are only paying the minimum on credit cards, you could still be paying off the cost of this Christmas in 17 years time.

Good luck to you Pam, sounds like your plan means that you will be debt free before you know it.

R.

frugalpam

Rafter wrote: »

Pam,

Good for you.

Taking out more loans because you are struggling to meet debt payments is seldom the best solution.

There is also some research to suggest that 20% of people are incapable of managing debt and living within their means and are therefore vulnerable to the money being thrown at us every day to buy stuff.

Using credit may not be right for you. For others, the golden rule is only to borrow to buy stuff that has real value and that you could sell if your circumstances change.

So, having a mortgage to buy your own home is fine. Borrowing to buy a car (as long as the loan is <5 years so the loan isn't worth more than the car) is OK. Even borrowing modestly to refurbish your home, put up a conservatory or something like that is ok as long as you are paying it off fairly quickly.

If you find yourself borrowing to pay for holidays, christmas, clothes, food etc then alarm bells should start ringing because you will have nothing to show for your debt and if you are only paying the minimum on credit cards, you could still be paying off the cost of this Christmas in 17 years time.

Good luck to you Pam, sounds like your plan means that you will be debt free before you know it.

R.

Yes, I agree with what you're saying and thanks for you comments. What I was trying to say that these were in fact the conclusions I had come to after years of burying my head in the sand and not thinking about the consequences of borrowing to pay off loans etc.
I can live with the mortgage - my house has trebled in value since I bought it 10 years ago, and I've no loans etc secured on it thankfully.
Me and credit though, are not a good combination and I finally acknowledge that. Even if someone offered me 0% interest on whatever, for a period of time e.g. on a credit card, I wouldn't take it up. I admire those who can work it so they don't end up paying interest - wish I could be like that. I finally recognise I can't handle it, so in future if I want something, then I'll save for it. Further down the road when I trust myself, maybe... but for now, its a no-no.
It just feels so good to be in control of my outgoings and knowing that at last I can live within my income

cheers
Pam

otak

Hi ,

I have come here from the need of money and reading that I wish you best luck - you will need it , and not only with money matters :beer:

What you have said is qiute honest . I am giving you my hand !