Tempted back into debt.........

pukkamum

hi we are now (after many years) living debt free and use only cash for everything, however there are things i need (read want) that i just don't have the cash for ie things for the home clothes for the children etc and have been seriously considering using a catalogue to buy these things putting the payments aside each week and paying it off every month. But is this just a slippery slope back into debt? Or is it (as i keep telling myself) a way of building a good credit report (at the mo i have nothing on there just my current account details which are up to date). Please help i really don't know what to do for the best.

climbgirl

I think you're using the credit report excuse to take out a loan again! You admitted yourself these are wants, not needs. So why go into debt for something you don't need when you've worked so hard to get debt free?

Using credit like that to build your credit report is a good idea - but only if you've got the money to pay for the goods in the first place!

Seems to me like you're fishing for reasons to take out the loan for something you don't need....

why don't you start saving towards it? Start keeping £2 coins, ebaying things until you get the cash for it? you say you can afford to put aside the weekly payments - do this as savings and then buy it when you've got the cash saved up.

Shineyhappy

I agree with climbgirl.

Why not join in a challenge? Instead of raising cash to pay debts, you could be raising cash for your savings account and for items you want?

Have you thought about Ebaying some stuff you dont want or that the kids have outgrown and using that money for things you want?

Shineyhappy

Ps I forgot to say, well done on getting debt free!!! I hope you stay that way!

Sooler

Try saving for stuff BEFORE you buy it. Then you'll be more chosey who you give your money away to - you had to earn it - so should anyone who you give it to.

Buying on catalogues - forget it.

Why on earth would you be bothered about a good credit report - they're only needed for people going into debt.

jo1972

Don't do it!! If you are anything like me and probably at least half the others who post on this board, you will definately be starting that slippery slope. We all have good intentions at the start but miss one payment and that's when the head gets buried, I've been there SOOOOO many times I can't even count.

Not saying you are now not good with money (well done on becoming DF btw ), but is it worth the risk?

Do as others have said, have a mass sell on ebay, do some mystery shopping or surveys and earn it before you spend it.

She says.....:rolleyes:

RAS

Hi

You may be able to get some of the things that you want from www.freecycle.org. A bit like E-bay but you get stuff for free. Just join your local group. You have to offer something before you bid for anything, but it does not have to be high value.

Beyond that get the saving habit. Depending on your circumstances, i would recommend

if you do not pay tax, find out if you have a local credit union here http://www.abcul.org/page/members.cfm

You make a regular small payment, they may then allow you to borrow extra money, say for a utility bill, for a short period, and the rate of interest is low.

If you pay tax, consider an ISA, as you get the interest tax free. See Martin's article herehttp://www.moneysavingexpert.com/savings/which-saving-account.

Then you can go out and get the best deals (things will be a lot chheaper than the cataologue) and take advantage of the sales.