What happens when the debt is paid off?

FinallyDebtfree2017

I'm a all or nothing personality, so have decided to bite the bullet and pay off my debt within 12months, which means no unnecessary spending.

It is going to be tough, but I think I can do it.

However what happens once it pays off?

How have people coped after paying off to debt? How have you adapted to the new lifestyle and ensure you don't acquire new debt?

Any comments would be appreciated.

MEM62

What happens when the debt is paid off?

You save. That way when unexpected expenses come up you can cover them. Going forward you will also be able to buy most of the things you need or want without borrowing money.

lazer-zxr

You pay more into pensions (I want to get upto 18% AVCs), and work on the mortgage (I want this cleared in 6 yrs). Then new car, then kids are off to uni, and throw in a couple of holidays of a lifetime.

FinallyDebtfree2017

Thank you MEM62 & lazier-zxr

How did yourself from overspending? Or will you stop from overspending?

How did you feel emotionally?

binaryuniverse

Yup. Savings.
I'm hoping to be cleared of all debt towards the end of next year, then I can start putting all that money (often around £200 a month) in to a savings account. I would like enough cash to that I could fund myself, for at least a year, should the unexpected happen.

When I think of all that money I've been giving to debt companies/creditors over the last 8 years and more, that could have gone into a deposit on a mortgage, it saddens me.

FinallyDebtfree2017

I hear you binary plus all the interest 😭:(:(:(

timefortea

I still keep a strict budget (using YNAB), to ensure that I'm saving as much as I want to. My money is still all accounted for, it's just going into savings now, not on repayments. I do allow myself more fun money, but once my budgeted amount has gone, it's gone.

katejo

FinallyDebtfree2017 wrote: »

I'm a all or nothing personality, so have decided to bite the bullet and pay off my debt within 12months, which means no unnecessary spending.

It is going to be tough, but I think I can do it.

However what happens once it pays off?

How have people coped after paying off to debt? How have you adapted to the new lifestyle and ensure you don't acquire new debt?

Any comments would be appreciated.

You save money so you have an emergency fund of around 3-6 months income to cover unplanned expenses. You can also save towards things which you want to do or buy. I never book a holiday or have work done on my house without saving the money first. I might buy with a CC for consumer protection but then I can pay it off in full.

debbie_debt

I'm certainly not debt-free yet, so I suppose this might not quite be how things work for me, but my plan is to carry on as we are with a little more fun-money. At the moment, me and my OH take £150 a month each for everything we spend that isn't food shopping, petrol and DDs. Once we're debt-free, this will probably go up to £250, but then the rest of the money we currently allocate to debt repayments will go into savings. I'd love to log into my online banking and see a lovely wad of savings. I also have a 'holidays' account that will start getting a monthly allocation for an annual family getaway.

FinallyDebtfree2017

Thank you all, makes complete sense, I think I will find it hard to find balance.

As I'm being not spending anything on 'wants' I think I would want to treat myself? Not sure, let's see, I, actually finding Im more relaxed already, constantly buying stuff and returning staff does take a lot of time....

tibawo

I don't know if my post will through a spanner in the works but for everyone it is not easy to just carry on with the budget and ease up a little. i know my weakness always has been that money slips through my fingers and over time I have learnt to restrain myself but sometimes i revert back to old ways.


I thought i was all sorted and part of my credit building decided to risk a credit card. It had small amount and was fine to pay. Work improved so i got another and then bam work load reduced and I ended up in a pickle again. This time though it is around £6000, work had picked up but i know i will never be truly able to manage to be debt free all the time.


If you are strong willed and your relationship with money has changed then the above advice is sound but if like me then be prepared for that you may go off the rails but it is how you deal with it that is important especially realising warning signs.