Pay or Save

asparagus1968

Congratulations, have a big smile on my face for you.


now, cut up those cards and close those accounts, stick two fingers up to the payday loan companies and open yourself a nice savings account :):)

On_my_way

subboy2 wrote: »

I've literally just paid the last one off!!!!!!!!!!!
I know it's melodramatic, but am literally sat here with tears running down the face. And it's not because I just watched 3 grand fly out of my account...I feel like the world has been lifted off my shoulders!!

Finally I can have a paycheck where money doesn't fly out of it at the start of the month on needless interest!

Thank you so much guys. I'm going to have a browse of these forums and read up on money management

Dancing on the ceiling indeed

That's absolutely brilliant. Well done you. Now you need to really work on changing your mindset. You can get lots of advice from here. Make sure that you're not tempted to take out more payday loans (I have been there too) although I could always pay mine they were still very, very expensive.

subboy2

On_my_way wrote: »

That's absolutely brilliant. Well done you. Now you need to really work on changing your mindset. You can get lots of advice from here. Make sure that you're not tempted to take out more payday loans (I have been there too) although I could always pay mine they were still very, very expensive.

Thanks

I am never going to touch another payday loan again. I'd rather starve!

sazaccount

CONGRATULATIONS!!!!!

(in nice shouty letters lol) Have you closed the accounts when paying them off??

Now that there gone the lovely people in here can help with looking at your budget and where you can save to build up an emergency savings encase anything unexpected comes up and for car/house maintenance possibly even saving for a holiday and not putting it on credit...
Post up an SOA from the link above

Good Luck and well done for getting rid
xx

subboy2

sazaccount wrote: »

CONGRATULATIONS!!!!!

(in nice shouty letters lol) Have you closed the accounts when paying them off??

Now that there gone the lovely people in here can help with looking at your budget and where you can save to build up an emergency savings encase anything unexpected comes up and for car/house maintenance possibly even saving for a holiday and not putting it on credit...
Post up an SOA from the link above

Good Luck and well done for getting rid
xx

Hiya, will do, many thanks!

Yep as I went along, I asked to close the accounts

FinanciallyUnsavvy

So pleased for you! Well done. So happy you made the right decision, even with the devil's temptation right in your face!

As nice as having £3k to spend would be, you'd feel guilty for every penny you'd spent, thinking it should have gone towards the debt. The feeling of having NO debts at all left is going to be 1000x the feeling of getting a windfall.

With the extra money you'll have every month you can save up your own little windfall again in no time!

Well done to you, enjoy the feeling! xx

fatpiggy

azlan wrote: »

contact your debtors and see what they would accept as full & final settlement rather than just paying it off - that way you could be debt free and have a bit of the money left for emergencies!!

Actually I would say that is rather dishonest. The OP now has the funds to pay off the debts in full and should honour the terms of the loans. I've never not paid in full even if it meant huge sacrifices and if more people did so, they would feel happier in the long run and the rest of us wouldn't have to make up the shortfall.

OP, pay the debts then save 50% of what you were using to service the debts before. You will soon be back up to £3000 and rising!

Teacher2

Paying debts off always comes before savings for the simple reason that the interest on debts is always much higher than that paid to savers so you save quite a bit of money by 'dumping the debt'.

However, in order not to be in the same situation WITHOUT a windfall to pay off the debts you need to change your financial habits.

Now you are solvent make a proper plan for the future. This should involve the following:-

-Do a proper audit of your monthly incomings and outgoings on paper or on an online template. In fact, do this but also do an ANNUAL audit too to know what you are going to have to spend later.
-Commit to cutting back where you waste money or splurge. The 'Martin's Moneyfacts' fora are a brilliant source of how to economise, but also Google 'thrift' for advice or buy a moneysaving guide book.
-Set up a direct debit to save a significant percentage of your salary into a cash ISA. £100 a month would give you £3000 in less than three years without you even noticing the cash had gone.
-When you get payrises/bonuses/cash presents/inheritances SAVE the cash, don't spend it. You don't need the money as you are already living on a fixed rate and this is just a bit of extra.
-Keep a record of your income and expenditure and monitor it closely, at least once a week.
-Save cash for future liabilities. If you know you will have to pay £200 for something every year, divide £200 by 12 and put that sum by every month to meet the bill when it arrives.
-Get into the habit of thinking about the consequences of your financial actions. Never 'drift'.
Good luck.

sugarbaby125

subboy2 wrote: »

I've literally just paid the last one off!!!!!!!!!!!
I know it's melodramatic, but am literally sat here with tears running down the face. And it's not because I just watched 3 grand fly out of my account...I feel like the world has been lifted off my shoulders!!

Finally I can have a paycheck where money doesn't fly out of it at the start of the month on needless interest!

Thank you so much guys. I'm going to have a browse of these forums and read up on money management

Dancing on the ceiling indeed

I have recently become debt free and it is not melodramatic, to say that I am still walking on air and can not keep on smiling every time I think, 'I do not owe anyone a single penny let alone a pound'. I have savings for future emergencies and credit with my rent and other household bills:j:T