Does ALL of your surplus income go towards debt?

WantToBeSE

I am about 8K in debt and am working towards paying it off and living a DF life.

I wondering about how people go about that. Do you put every penny (after paying bills etc) towards paying your debt off, or do you have a bit that you allow to use for your own spending?

Bobarella

I do put as much as I can towards the debt. I often have no surplus as my income is very variable. So I have to be very motivated when I do have money as it might not last.

EssexHebridean

It depends very much on the person, and on the circumstances, I think it would be fair to say. If you cut things too much to the bone, there is the possibility that it all starts feeling a bit too tough - so some slack in the budget for entertainment, for example, is a way a lot of people go. alternatively setting goals, milestones, with a small amount put aside at that stage for a "reward" works for others.

Puddylove

Hi
Everyone's finances are different, but I think you have to achieve a balance between paying off debt, and having a bearable life.
A small allowance for fun stuff, or savings to build an emergency fund can add some joy/remove some worry.

tori.k

The surplus in my SOA budget goes on overpayments, any over-time and extra's get's put aside.

determined_new_ms

Surplus in our joint account yes - although there's often not alot! Out of my personal income I put some into savings, allow £80 pm for personal spends and always have £50 slush in my account for any unexpected costs. At the end of the month if that's not spent then it goes to the debt

binaryuniverse

It all depends on the individual. It also depends on your debt.

If the debt is gaining interest then yes, it's always good to pay off as much as you can, and service more of the debt than the interest.
If you have all your debt at 0% then there is no need to rush the debt down as fast as you can (unless of course, that 0% is a promotional offer, that is coming to and end). It would make more sense to stick that extra cash in to a savings account, and gain some interest on it.
However, even if it is at 0% and, like me, you are sick of the sight of it (it's been hanging round my neck for many years now) you may just want to pay as much as possible just to get it gone. This can also be a good idea as you never know when you may not be able to do this, in the future.

When I was made redundant, at the start of the year, my debt rose back up, whilst I was out of work. Back in work I decided to throw every spare penny I had, at the end of the month, on the pile. So at the end of the month, my bank balance would be at £0. All well and good, until some unexpected expenditures come out. Then it suddenly makes everything a massive squeeze until payday. I do have a rather generous overdraft but I flat out refuse to touch it.

So I've decided to give myself a cushion. Just took out a Tesco BT card (0% fee), and shifted my active cards to that. I'm not going to chuck my usual amount on, for a couple of months, and keep that cash in my current account instead. Then start repaying as normal in Jan/Feb. £0 will no longer be considered the target baseline, for my account. Will be more like £400. Basically giving myself an overdraft on top of my overdraft.

MrsTinks

So much horses for courses here...

My debt is manageable and all at 0% interest - I over pay but I still allow myself to live. If things were tight then I would definitely be allowing myself a lot less to enjoy until it was gone. I do however have the luxury of having income protection so I know that if I get fired tomorrow then my insurance pays enough to pay everything I need for the next 12 months, including my debt payments and would actually pay through till I'm debt free :cool:

I hope I don't get made redundant but it makes me a lot more relaxed about it knowing that if I do end up unemployed then I don't have to panic about it.

As I say, I appreciate that's a luxury not many have on here.

Everyone is different - I've had very much times when I threw EVERYTHING at my debts and forgot to live, then I tend to get fed up and stray again... :o:o

You need to be honest with yourself and work out what will work for you

Sellurgranny

I have lost the momentum of overpaying every single last penny as so many other expenses vie for attention. But I do keep to a weekly/monthly budget to ensure my CC will be paid off before the 0% runs out and all other outgoings met without fail. Debts are really boring aren't they!!

Actually having looked at my signature I feel a bit annoyed at myself. Better have a look at that and see where I am after 10 months of lax-ness.

Farcasting

I find the best way to put all my wages towards my debt expect my 2 bill phone and sky £61.25. im lucky tho I live at home and my mam lends me money if I really need at the end of the month.


I feel as if I left say £100-£200 in my bank just incase by the end of the month I'd waste it and regret not paying it off my debt.


pretty much I will spend less if I had to ask my mam to borrow money rather than if it was sitting in my bank

OneLife_OneShot

I pay as much as I can off but you need to have something to enjoy and look forward too at times, really just depends on the individual.

If I have anything spare after my budget I tend to fire it at the debt which makes the % owed go down quicker and that is a good feeling.