Be Realistic !! - are you really going to save up first for 'big stuff' ?

debbycatz

I often read on this particular board about DFW's who vow never to get credit cards or take loans out again once they are debt free.
I, myself am debt free but on a relatively low income which is why I spend quite a lot of time here learning great tips on how to make my money stretch :money:
However, like a lot of us I guess, some rooms in my house are in a desparate state and badly need re-furnishing. I'd also love a new kitchen and the bathroom suite badly needs replacing.

Having done some sums, it would take me a *very* long time to save up enough for some of the major work that needs doing but I accept I don't have a great deal of disposable income.

I'm wondering how others, whose homes/cars/gardens may be in desparate need of upgrading, intend to finance this. Are you really going to save up for a long time and get one thing done at a time, or would you class 'home improvement' credit as 'good debt' rather than 'bad debt'.
I know some of you appear to have loads to save once you are debt free but for those who have a modest income, how will you finance 'big stuff' in the future ?

hypno06

It is not necessily a case of "never again" for many of us, I think what does happen is that we have learnt what is important, and learnt how to manage our budgets.

That way, if we really need to borrow money to fix the heating, for example, we can do so, having first checked that we are getting the best deal, both on the work to be done, and on the finance that we need, plus we know that we can afford to pay it back, by overpaying where possible, and without buying an extra pair of shoes or two just because we can!

It is all about being sensible really, and I think that is what we are aiming for, as we know that the perfect world of always being able to save before you buy is not always available to us.

Snaggles

For me, it's not about saying I'll never use credit again - it's more about saying I will never pay 24.9% apr again! But I would be very cautious about taking on a loan etc in the future - it would have to be something I had researched thoroughly to make sure I was getting the best deal etc, and I would have to be sure I could afford it even if my circumstances changed, ie if I lost my job or something.

hypno06

Also, getting credit for something you NEED will still be acceptable. Getting credit for something you WANT without good reason is something that should be saved up for instead.

Of course, for many doing DMPs and IVAs etc, credit will be difficult to come by for a long time, so saving up will be the only option, even for the big stuff.

sammiboo

When my debts are paid off then i will still keep the credit card - "just in case" but i havent used my card for well over 12 months so i know i can cope without it. But would rather have a low apr with a managible balance now and again

oojakapipi

I think it is a case of do little bits at a time. I have always been on a low income as I have always worked for charities, but have never had a credit card (I know that my income will not support one). There are lots of things needing doing in my house, but as long as the heating, lighting, water and roof are working the rest can get done as and when it is able to be paid for.

Sell all your tut on ebay, carboot, amazon, mystery shop. pigsback, do the Old Style board and you will be suprised how much you can shave off your (even meagre) budget. If you are determined to find extra income, you will find it!

Good luck!

Mozette

Depends what you mean by 'big stuff'. Example, if my car blew up or whatever, I would consider borrowing a bit to get a replacement (but I'm talking paying about £800 for one) because, well I don't NEED a car, but to me it's my independence, and I hate to rely on others. If for example I wanted new carpet, no, I wouldn't do it on a card at 0%, I would save up first. If it was something like I needed a new boiler, and had no heating, well of course I would borrow for something like that. But I will never EVER get into debt to buy a new telly, a DVD player, tat off ebay, that kind of thing.
Priorities; my priority will be staying debt free unless it's absolutely essential, then I would be sensible and at least budget for the repayments.

rog2

I thoroughly agree with the posts above. I have always said that I will not use 'credit' for the 'Luxury' items, since it is often with this type of 'credit' that the potential pitfalls are least well explained since the potential debtor is normally so enthusiastic about 'owning' the item, that he/she is most likely to sign on the dotted line without reading the small print.
Sensibly managed credit, e.g. for home improvements, at realistic interest rates and with built-in safeguards for both Creditor and Debtor, is, in my opinion, fine.
Most of us have, as a consequence of our current situations, learnt the hard way about managing debt, and we will probably make good debt managers on future credit.

hypno06

Mozette wrote: »

Depends what you mean by 'big stuff'. Example, if my car blew up or whatever, I would consider borrowing a bit to get a replacement (but I'm talking paying about £800 for one) because, well I don't NEED a car, but to me it's my independence, and I hate to rely on others. If for example I wanted new carpet, no, I wouldn't do it on a card at 0%, I would save up first. If it was something like I needed a new boiler, and had no heating, well of course I would borrow for something like that. But I will never EVER get into debt to buy a new telly, a DVD player, tat off ebay, that kind of thing.
Priorities; my priority will be staying debt free unless it's absolutely essential, then I would be sensible and at least budget for the repayments.

That's what I was trying to say, except I rabbled :rotfl:

Time to go to bed, methinks!!

ani*fan

I have never saved up for a 'big thing' in my life. I can't even imagine staying focussed enough for the length of time it would take.

I bought my first flat with not a penny to my name and a 100% mortgage. I've had loans for every car I've ever owned and although I don't have a loan now, I'm going to need to replace my car at some point.

I have no clue what to do about this. I seriously doubt I could ever save up for a car. Or a deposit for a flat. Or anything, really. I can't even save one week's fun money for an extra special outing in the second week.

Maybe I should give up and live in rented accomodation my whole life and take the bus?

When I first joined this site I felt so positive and now I'm all 'it just takes so LONG!!'

Mozette

It takes a lot longer to pay it off than to save for it in advance. Much as I love Queen,
'I Want It All And I Want It Now', is no longer my aphorism.