Just wondering what you would do.....????

esbm

Def option 1. Any debt is like a "swarm of killer bees" (Mr money mustache) and you just don't know what life's going to throw at you. Get debt free, build up an emergency fund, then start the middle road of saving and a bit of careful spending.

PinkPoppies

Another vote for option 1!

toffifee

I would go somewhere between 1 and 3.
Carry on working hard and living frugally, to make as much money as possible available for the debt.
However I would send some of it to the debt (at a rate that will pay it off by the end of the 0%) and put the rest of it into a savings account that I would not touch.
Then at some point the amount of debt you have left will be equal to the amount you have saved and you could either kill the debt or keep on paying it off at the same rate.

I would do it this way so that a) I got into the habit of saving and b) if something unexpected comes up, I could use my savings to deal with it, rather than taking on more debt.

From experience, I would not relax until the debt was paid off. I certainly wouldn't go on holiday - that would seem to be completely wrong to me. No criticism of any one else though - we're all different!

esbm

Ditto the above actually- v sensible

Skintandscared

I'd probably for option 1 if it was my finances...and I think i'd be trying to throw any spare money I had at it (emergency fund aside), if I was as disciplined as you had been.....
You could opt for a cheapy Sun or Groupon holiday however, if you just need a little break, and plan to do it the cheapest way possible? It's a middle ground, so you feel like you aren't completely depriving yourself, but you're not spending hundreds on a break....Good luck xx

Nowisnow

Thank you all so much for the congratulations and very thoughtful advice.

I think I really should try to kill the debt quickly. My second job is dependent on being in very good health, so that is a real consideration.

I am downloading YNAB as we speak - thanks again DFWs for the introduction - and will start building my emergency fund. Never budgeted before!

I will budget for a short mini-break. My justification for this is that my kids may not want to go on holiday with us for much longer!

Thanks again and I wish you all the best in your own efforts. We can all do it!

Best wishes
Nowisnow xxx

Tink_04

Why don't you pay the payment - save some and spend some? Then you have some savings - a nice treat or two and your debt gone?

Nowisnow

Tink_04 wrote: »

Why don't you pay the payment - save some and spend some? Then you have some savings - a nice treat or two and your debt gone?

Thanks Tink_04 - that sounds very sensible!

rockm87

agreed. option 1. just keep going, and get rid of it!

enthusiasticsaver

I would go for the first option as well and clear the debt and save up and then take a holiday (after leaving some as an emergency fund of course). That is just me though as I hate being in debt as you never know what is round the corner. Job loss, illness and large unexpected expenditure could derail your plan and 7.5K of debt is still quite a lot.


Seriously well done though on getting to where you have.