Yoyo debts

Ilona

tori.k wrote: »

I know my issue up to now has been lack of foresight while paying down debt, I had tunnel vision never giving thought to the foreward planning of the unavoidable expenses still to come like when your reliable car decide's to retire and all bit's including ourselves that fall to bits as they get older. I've now accounted for this within my budget means it taking a little longer than I would like to pay off the debt, but with a little luck shouldn't get caught with my pants round my ankles again.

You've made a very valid point there. Things can happen which might set you back, and in turn that can make you miserable. Looking to the future and taking into account the bills that might need paying is good thinking. Good luck on your journey.
Ilona

ReadingTim

Suspect debt is just another facet of what was demonstrated by the Stanford marshmallow experiment, and long term debt success is linked to the individual's capacity to delay gratification more generally.

iolanthe07

The secret is to keep on top of your spending. Long before computer budgeting programs, I kept a little notebook and made a note of every item of income and expenditure with a constant running balance, reconciling each month. I also saved up £100 (a lot in those days) and called it zero so as not to go into overdraft by mistake. Gradually I managed to save up three months income to cover emergencies, which wasn't easy on £14 a week even in 1971. Credit cards weren't generally available and Hire Purchase required one third deposit and maximum two years repayment, iirc. Somehow we need to inculcate a savings habit again and not buy stuff we don't really need and can't really afford.

aphill24

When I got Married my wife's Aunt gave us a tip, Save a little, Spend a little and borrow a little. She ran a post office and I really liked the advice, just wish I had saved a bit more.This forum has really been an inspiration to me and although we have never been in a lot of debt we have not saved for that rainy day and more or less lived from week to week. I have never thought as credit available on a CC as free money nor been tempted to just spend it on the latest gadgets or clothes or even worse putting a holiday on one as my bankrupt sister has done. I fully intend to cut up all my cc save for one I need to use to hire a car on holiday and I have come to the conclusion they are the worse things on earth and really believe they should be restricted by law to one per person. I used to think having one on 0% was okay as it was free money but it still has to be paid for, now I think along the lines of having anything on credit is akin to giving yourself a pay cut until that credit is cleared. Far better to save and pay for it upfront. The protection you get is important I know and a friend was able to claw back £6k when MFI went bust a few years back so any big purchases should be protected by using the card for section 75 it's just the will power needed to save first to be able to pay it off in full each month. Gone are the days when Cards were advertised as free money for the 56 days before interest accrued, now all you hear is how long you can get a 0% deal for.

Ilona

aphill24 wrote: »

I fully intend to cut up all my cc save for one I need to use to hire a car on holiday and I have come to the conclusion they are the worse things on earth and really believe they should be restricted by law to one per person.

Far better to save and pay for it upfront. The protection you get is important I know and a friend was able to claw back £6k when MFI went bust a few years back so any big purchases should be protected by using the card for section 75 it's just the will power needed to save first to be able to pay it off in full each month.

I had three credit cards years ago, don't know why, because I always paid them off monthly. I'm now down to one, and although I use it, I know I have the cash to pay it off. When I last changed my car I deliberately maxed out on the card for the points, knowing that when the statement came in I had cash in the bank to cover it. Used wisely they can be useful, but as you say, it needs discipline.
Ilona