Anyone else have this "issue"?

MeenaM

Hi all
We are half way through paying off debts, over the last 12 months have paid off £10,000 approx and as you can see by my signature we still have a way to go. I have put aside this month £1125 for debt repayment and just got paid and budgeted another £700 can go to the debt so nearly £2000. we are sticking to a budget and managing to free this money to pay off debt.

My issue is this I am finding it very hard now for some reason "letting go of this money" , I keep thinking about other things we can do with it , like we desperately need new carpets etc I'm ok not spending anything on me i am used to not having new clothes make up etc but am thinking of other things we "need" ,,, for the last 12 months i have been getting motivated by seeing the debt reduce but now i am feeling the opposite and finding it difficult to pay it out,

any thoughts?

thanks

sourcrates

Hi,

Have a little break maybe, buy a new carpet, or some clothes, or go for a nice meal, do something, as long as its not credit funded, getting debt free is not a race, more of a jog, but don`t forget to stop and look at the scenery occasionally.

theoretica

Exactly the problem with spending money before you have earned it. But with the rate you are paying it off you should be able to have nice new carpets quite soon - probably a decent time to start looking at options for them and planning out all your money for the year.

datlex

OP you don't need new carpets. You may want new carpets, but you don't need them. You might well be able to get better carpets if you wait. Things you may need will be a washing machine, fridge and cooker if any break down. Put £1000 aside and have that as an emergency fund (if you don't already have one). I know Dave Ramsey is very US focused and hence some of the advice he gives will not work here. However, one thing he says is: "Live like no one else, so you can live like no else" In other words, total frugality, needs only- no holidays, no takeaways, no subscriptions etc, whilst you are paying off debts. In order that being debt free you can afford nicer holidays etc than you would have and be generous. Think what can I afford once I get debt free?

fatbelly

Have you thought about trying a full & final settlement on the MBNA debt?

DrSpendLittle

I went through that phase too.

I decided to do what Sourcrates has advised and took a few months off the intense debt slaying. It really helped me refocus and re energise.

You've done remarkably well so far and you should have the confidence to take some time off, spend you income in a measured and meaningful way and celebrate the milestone you find yourself at.

That said, please do be mindful of it triggering further spending and the "I might as well get that done at the same time" mentality. I will admit that I took longer off my intense debt slaying than anticipated because my spending on one thing triggered spending on another. It never got out of control and I have proudly not spent more than my income since my LBM, but, those old 'debt cognitions', so to say, were still there and I had to challenge them. So, do set yourself strict limits on timescales and budget.

Debt is death by a thousand cuts. Solvency is life by a thousand small repayments - celebrate those small repayments once in a while and then keep on keeping on!

Good luck!

getmore4less

It is a very natural feeling, when you cut back it is a great feeling at the start but the novelty wears off over time.

It is just part of the slog phase of debt reduction.

The important thing is to not loose sight of one of the core fundamentals that is prioritising where the money goes.

One strategy is to build them into the longer term budget.

Make a list of all your needs and wants that are currently not in the budget and add them in.

if you get an idea in your head what you would like to spend on these you can forecast a few years ahead including all these things.

Your sig kind of hints you will be debt free around the end of the year, that is soon enough to start planning into 2020 when there is going to be around £10k that needs a new job to do.

You could even go as far as starting to look at which carpets you might like

You can then keep an eye out for any deals, sometimes the utility value of having something is worth the extra cost of a bit of interest on delayed debt payments.

The key it the prioritized list of needs and wants that are not able to make it into the current plan.

a_silver_lining

I agree with the small treat break as long as it's not on credit. Also agree that it can go in for too long, I ended up taking a break for a year and could kick myself!!

MeenaM

fatbelly wrote: »

Have you thought about trying a full & final settlement on the MBNA debt?

Hi , no and I have no idea how to do that? we have never been behind in payments

MeenaM

datlex wrote: »

OP you don't need new carpets. You may want new carpets, but you don't need them. You might well be able to get better carpets if you wait. Things you may need will be a washing machine, fridge and cooker if any break down. Put £1000 aside and have that as an emergency fund (if you don't already have one). I know Dave Ramsey is very US focused and hence some of the advice he gives will not work here. However, one thing he says is: "Live like no one else, so you can live like no else" In other words, total frugality, needs only- no holidays, no takeaways, no subscriptions etc, whilst you are paying off debts. In order that being debt free you can afford nicer holidays etc than you would have and be generous. Think what can I afford once I get debt free?

Hi , I do have the emergency fund set aside and I also am a big fan of Dave Ramsey too , I thought it would be harder at the beginning of the debt free journey but its harder the longer it goes on for me! thanks for advice

MeenaM

getmore4less wrote: »

It is a very natural feeling, when you cut back it is a great feeling at the start but the novelty wears off over time.

It is just part of the slog phase of debt reduction.

The important thing is to not loose sight of one of the core fundamentals that is prioritising where the money goes.

One strategy is to build them into the longer term budget.

Make a list of all your needs and wants that are currently not in the budget and add them in.

if you get an idea in your head what you would like to spend on these you can forecast a few years ahead including all these things.

Your sig kind of hints you will be debt free around the end of the year, that is soon enough to start planning into 2020 when there is going to be around £10k that needs a new job to do.

You could even go as far as starting to look at which carpets you might like

You can then keep an eye out for any deals, sometimes the utility value of having something is worth the extra cost of a bit of interest on delayed debt payments.

The key it the prioritized list of needs and wants that are not able to make it into the current plan.

great advice , i will look to do that thanks