Slog away or slack up?

FinanciallyUnsavvy

Hey guys

Just want your general consensus on my current situation.

So, since my LBM in January this year I've slogged away at a second job and paying everything I could possibly spare to clear my overdraft, the smaller credit card and some of the large credit card.

Now my OD is gone, I'm in positive numbers and left with one fairly sizeable credit card - that is interest free until 2016.

My question is do I continue slogging away and being rather miserable until Dec/Jan to be totally debt free sooner, or do I ease the pressure a bit, knowing the credit card will be paid off before the interest free period ends?

Just interested to know what others would do in this situation.

Ta.

sourcrates

Personally I`d keep at it, if you "let lose the rains a bit" you may find your commitment wavering.


Once you start, its a good idea to keep going, just keep in mind how much sooner you will be free of debt.


Its when you reach that point that you should have a good blow out lol !!!


keep at it, good luck !! :T

if_at_first...

I would also say slog away! You will have to pay it off anyway. If you want to make your money work for you more (and you trust yourself not to spend it!) you could put everything extra in a savings account - earn some interest on it and when you have the full amount pay it all off. Then it is party time!


Just remember - when it is paid off cancel everything and never ever get cards or ODs again.

hohum

How tight have you pulled it in? Personally, I'd take the scenic route - at least for a few months. Still budget but just give yourself a little more wiggle room. I trust myself to keep within a budget more if it's not boom and bust all the time.

I am trying to rid myself of the feast and famine thing which is a symptom of my circumstances and how our income arrives. I am much happier looking to achieve moderation and feel more confident in my ability to stay within a budget.

I think this is quite a personal decision, am sure others may vary in approaches.

Ilona

Sticking with it will give you good discipline for the rest of your life. Yoyo spending is like yoyo dieting, once you take your eye off the ball you are back where you started, overweight and in debt.

I live on a pension and have no debt, but I have to discipline myself not to overspend, not to spend money I haven't got. Most of the time I am fine with that, I am good at budgeting, I plan my spending. It is a pain sometimes, when I feel like blowing a large amount on something frivolous, but I think, short term gain long term pain, and I come to my senses.

If you are going to relax a bit, have a breathing space, I would say destroy the credit card and only spend cash. Allow yourself the odd £20 to spend, but when it's gone it's gone. No card to fall back on.

If you look on it as slogging away is making you miserable, try and alter your way of thinking. Slogging away now will lead to a life with much less stress later on. I am not miserable because I don't have much money, I feel happy and liberated because money does not control me. I finally got rid of my mortgage by cutting my spending and making over payments. I didn't need to, but I wanted rid of it.

Good luck with what you decide, but the feeling that you don't owe anybody anything, is the best feeling.
Ilona

FinanciallyUnsavvy

Don't get me wrong, I'm still budgeting (I can't imagine life without YNAB now). This month I've not not allocated every last penny to The Debt as I have previous months. I've put some extra in my savings (hopeful holiday fund) and I've allowed myself a few extra purchases.

I haven't touched the credit card to spend in however long it is since I had my LBM. In fact I've never even removed the Barclaycard from the letter it came in from setting up the balance transfer, I have no idea what the pin number is. I know I have no danger of using credit again- that's far from what my point was.

Thanks for all your responses this far. It's interesting to see everyone's differing viewpoints! At the minute I can see both sides of the story and currently whichever decision I make is making me uneasy and feeling like the wrong decision...

[Deleted User]

The risk with easing back is, you never know when something untoward (illness, redundancy etc.) could occur, causing you to miss clearing it, before the 0% APR expires.

Just out of interest, how much would you need to save each month, to have enough to clear it, the month before the 0% APR expires?

How does that compare to the monthly amount you are currently paying?

Moneymash

As it is only a few months, slog away at it. Obviously give yourself some spending money otherwise you'll go crazy, but make paying off your debts the main priority.

I owe less than you and feel the same way, I've done so well, time to relax and enjoy, I deserve this, whats a few extra months etc etc. However, this is the really hard bit, but you'll be so happy come Dec/Jan when you are truly debt free.

Surely you don't want that nagging feeling that you owe someone money, right up until 2016, when you can avoid this? I also have to echo what BB said you never know what is around the corner. I was doing really well until I got ill last year and had to take time off work, and my employer doesn't pay sick pay. That is still a worry now so I am desperate to pay my debts as quick as possible. I still have spending money otherwise I know I would fall off the wagon completely.

Good luck.

GettingOrganised

You're right, it is a very personal decision. You've done amazing so far and have reached all of your initial targets - well done.

Yes you have debts, but you're paying them off, you don't have to be miserable along the way. However, it isn't for the long haul - can you handle a few more months of misery for the debt free feeling by the end of the year?

Personally, unless it was affecting me physically or causing problems with job one, I think I would stick at it for a bit longer.

Good luck in whatever you decide.

tealady

Hi
I agree with everyone else that it is worth the short term pain for the long term gain. It will soon be over.
Why not work out your DFD and start a "countdown" calendar with the promise of a treat on the day that you make the last payment?

Seanymph

I think slogging away is a bit miserable - I know I feel a bit like that myself at the moment.

Perhaps you can do a bit of both? Allow yourself a treat every month without taking your eye off the ball.

I know how you feel - I work six days a week at the moment, and as much of it is from home I feel I never get away from it to be honest, but it's a good thing to see those figures going down. OH and I did have a complete feeding frenzy chinese takeaway this month though - because after months of not having a takeaway, and other things going on, it was time to blow it for a day.

We are able to do that, if you can then 'treat' yourself - but don't lose sight of the target.