How long did you take paying off your debts and how did you do it?

monetxchange

Just a quick comment to say don't think you'll be forever stuck in to car finance. I think when this one is paid you should obviously drive it till it falls apart, but then also proactively think about saving a little month to month (when debt free) to buy a replacement in the future. By then you should have a decent nest egg to get one. Reality is brand new cars lose a massive amount of value as soon as you drive them away, and older cars aren't bangers just because they're not new and sparkling and look good.

For example I'm a pretty decent earner yet drive a 13 year old Smart car that is dirt cheap on petrol, tax, insurance and sails through the MOT every year. Would be nice to upgrade a little at some stage, but only when I have the money to spare. Sure you'll do the same!

jazzyja

monetxchange said:

Just a quick comment to say don't think you'll be forever stuck in to car finance. I think when this one is paid you should obviously drive it till it falls apart, but then also proactively think about saving a little month to month (when debt free) to buy a replacement in the future. By then you should have a decent nest egg to get one. Reality is brand new cars lose a massive amount of value as soon as you drive them away, and older cars aren't bangers just because they're not new and sparkling and look good.

For example I'm a pretty decent earner yet drive a 13 year old Smart car that is dirt cheap on petrol, tax, insurance and sails through the MOT every year. Would be nice to upgrade a little at some stage, but only when I have the money to spare. Sure you'll do the same!

Hi yes completely agree, this was my initial plan after taking out the finance. The car was new so milage would be low when its ended. I was either going to keep it OR give it my daughter, who will be 18. Im hoping to get her driving young. But of course its the insurance, its a 1.4 so insurance would be high for her. So its either I keep the car and get her a cheap run around or I give her the car and get another finance or buy a second hand...but its something il look into when I'm there! But completely agree with what you're saying. Plus my income will be higher in 3 years

enthusiasticsaver

monetxchange said:

Just a quick comment to say don't think you'll be forever stuck in to car finance. I think when this one is paid you should obviously drive it till it falls apart, but then also proactively think about saving a little month to month (when debt free) to buy a replacement in the future. By then you should have a decent nest egg to get one. Reality is brand new cars lose a massive amount of value as soon as you drive them away, and older cars aren't bangers just because they're not new and sparkling and look good.

For example I'm a pretty decent earner yet drive a 13 year old Smart car that is dirt cheap on petrol, tax, insurance and sails through the MOT every year. Would be nice to upgrade a little at some stage, but only when I have the money to spare. Sure you'll do the same!

I would agree with this.  I think with the PCP deals and car lease schemes around now people have started to look at cars like they do phones and automatically upgrade when the 3 years is up regardless of whether they can afford it or if there is anything wrong with the car.  Cars last a lot longer these days and in my opinion there is no need to change a vehicle every 3 or 4 years and buying brand new is a waste as it devalues so quickly.  Having said that I have bought a brand new convertible (new model) about 10 years ago on interest free credit and only changed it when the grandchildren came along and it was no longer any good for my needs. It was a purchase made from the heart rather than the head but we got a lot of enjoyment from it in the 6 years we had it but economically not sensible.  Now I have a steady safe car which was 2 years old when I bought it and is now 6 years old.  I will probably keep it another 4 or 5 years then trade it in. I am saving to do that though. 

ThatKiss

Just joining in on the thread, I began taking action to sort my debts (second time round) in Jan 2018 and after a year pretty much treading water, resolved to pay off my biggest credit card (£7k of a total of just over £10k) in 2019. I did that by October and paid off the remainder by February this year. In the past I’d probably been taking the scenic route, but I decided there would be no more balance transfers etc and pared back massively - albeit not completely cutting out night out and takeaways etc.

I’ve just got my car to pay off now, and that should be done by the end of the year - I’m saving towards that now, and the psychological effect of seeing cash in a savings account rather than owed on cards is massive!

mufc689908

Had about 100k that I have walked away from. Feels nice.

Bossofmoney

mufc689908 said:

Had about 100k that I have walked away from. Feels nice.

Walked away from? Bankrupt or paid it off?

MrGorsky

Like others have said on here.  Good budgeting is key.  I cleared £59k in 2 and a half years,  which put me in a position to get a mortgage on a dilapadated property, only way we could get on the ladder. No kitchen,  bathroom,  windows falling out,  no heating,  everything rotten.  I then got into debt doing it up,  £25k, which I cleared in a year,  and then the latest £70k, which after 10 months i have down to £57k.  I'll never get into debt again,  but the house is solid and livable now (thankfully in this lockdown). I hope to be debt free in 2 yrs.