Life after Debt?

Gettingtherequickly

Like others have mentioned, I diligently save into different accounts for annual bills etc. However, and I know that many prefer otherwise, I pay my water rates & council tax over 8 & 10 months, but continue to pay the "free" months into the annual bill account. This serves 2 purposes, it is a: a nice top up and b: not a shock to the bank balance when payment commences again in April.

I am a terrible at claiming my expenses at work (lucky that it is a small company and not an issue at claiming late), so by the time I claim them, I am used to not having the money. So I use this to treat myself to fly business class when I go on holiday. I work on the basis that the flight is going to cost me x amount anyway, so my expense money goes a long way towards the business class cost. I will add that I have no dependants, so it is purely selfish luxury for me. Having said that, I pay £50 every month into an account for a weekend away with a friend once a year, we book an Easyjet flight to wherever we decide we are going and by the time we go, everything except any personal spends is covered. Going to Marrkech next March, because we have booked the flights so early, 2 return flights with luggage in cargo, less than £240!

I also have an account for my credit card expenditure, so when I use the card, I transfer that amount from my current account to the credit card saver so the balance on the credit card should always be the same as the saver account, bar cash back. Then just transfer back to current account on the day it is paid.

You have learnt a lot and will work out what is best for you when you are cash rich again!

Debtfreeforever

Ahhh thank you so much.

I'm trying everything to be debt free on Friday, but July maybe a bit tough, but not unlike every other month anyway :rotfl:

datlex

The_Analyst wrote: »

Not debt free yet (6 months to go) but am very much in a "no more credit" way of life. In addition to paying off debts I have started savings. This is very much my plan for the next 20 years until retirement - earn, save, spend when necessary. I WILL take a Credit Card, but only so as to amass Air Miles/Rewards as I do a lot of travelling between the UK and Canada. I will pay off my credit card every month, I will never take on unnecessary credit, the only sticking point might be when mine or the wife's car needs changing. I may look at leasing

Getting in habt of paying off credit card in full each month whilst reaping reward for using it definitely helps with getting debt free. The rewards can help towards Christmas/ birthdays stopping them from being unexpected expenses.

Debtfreeforever wrote: »

Thank you sourcrates, I can't wait for that feeling.
I learnt a lot from the book YNAB, simply put your budget should reflect to what you want out of life.

Budgeting is vital to getting debt free and staying debt free.

The_Analyst wrote: »

Also, forgot to add. The previous £840 I was paying into my DMP/DPs will go direct into savings. Hopefully within a couple of years I'll have 15k or so in savings

Well done on getting debt free. Since becoming debt free I have managed to save for a deposit on a property, simply by putting the money I was throwing away on debts into savings. All being well on Friday I should be £81000 away from a rent free retirement! When I was in debt I thought that I would have to rent for the rest of my life.

Debtfreeforever

Thank you datlex

Deep_In_Debt

I became debt free in 2013 after many years of being in debt. Whilst in debt, my monthly repayments even when I was on a DMP were more than my mortgage payments each month. That was scary! When I paid off my debts, I chucked as much as I could at over paying my mortgage and managed to become mortgage free in 2014.


Since then, I've been saving like mad. I work full time but also have some part time work and my wages from my part time work go into my emergency fund - its not much but every little helps. I've now saved enough to have some much needed home improvements which I am in the process of and the improvements are making me feel better as been needed for years and finally the house is starting to look decent.



I also mostly leave my debit and credit cards at home and each week withdraw cash to live on for the week. This is for food and petrol so I have no temptations in town during my lunch break at work. I have to manage that money for the week.


I also try and pay my bills yearly - car insurance being one as it is cheaper.

Debtfreeforever

Wow deep in debt, that is serious dedication, very impressive

MrsSave

Well done on being almost debt free. I became debt free in February, so almost 5 months ago and I'm still trying to get my head around budgeting!! I'm trying to pay for more and more bills annually (managed the breakdown cover last month, aiming for the car insurance next!!) which saves a little money. I put money aside each month for Christmas, birthdays, car costs (and have now started on house costs - there's always something!!). I'm still trying to work out food and spending money, this is where I struggle the most but I'll get there.

I do all my spending on a Tesco credit card (and log it all on ynab). I pay the balance in full at the end of each month. I then use the points for days out (been to Longleat a couple of times, and using them for Legoland this Summer).

Debtfreeforever

Thanks mrsave, I think that is really start and YNAB is all about adjusting the budget if needed

knightstyle

Having been deep in debt many years ago the one thing I did that gave me most joy when the debt was finally cleared was to have a big bottle that all my loose change went into every day. Then when we needed a lift the kids would count it all out and decide what treat we should spend it on. Oh and only once a month. The kids still talk about it and one does the same with her kids even though they are now at college and uni!

Biollante21

Excellent thread
Very inspirational

I am hoping to be CC debt free in the next 12 months and then can get on with doing what i want to do with my money
Enjoy your debt free future everyone... i know i will :beer::j:j