£37k -> £2.5k Almost there, but...

Milestones

I’m a big fan of the forums, been lurking for a long time and in that time they have really helped me on my journey.  Some motivation and advice might help for this last bit, so a quick bit of background.  4 years ago (December 2016) I had my true LBM, before that it was lots of planning to do it but it always slipped and got worse.  I cleared my credit card debt back in July this year but I still have a loan (remaining balance £2.5k @ 3.1%, £1.1k savings).  I’m pretty sure I can clear this last bit by the end of January if I can resist other temptations and this is the thing.  The closer I get the more I’m dreaming of spending money – I have wanted to get a gaming PC or laptop (for a long time) and I’ve been thinking the Christmas sales would be a good time, but then I delay my debt free date and lose the satisfaction of buying it debt free.  I have some money in savings so if I see a good deal should I buy now or hold off till all debts paid, what do you nice people think?.

My other temptation was replacing my car which I’m pleased to say I got over pretty quickly.  I cleaned it the other day and found yet more cosmetic issues, in particular 2 large patches where the paint is flaking off in prominent places, when this starts rusting it won’t look good.  There are other things too but all cosmetic, 2 alloy wheels look a mess, 3rd has started, the rest of the car has quite a few scratches and marks.  It’s a basic Honda Civic – nothing too fancy, its 7 years old and 50k on the clock.  I’m not bothered about it being pristine but I don’t want it to be unsightly.  Initially this sent me off looking at new cars but thankfully I’ve come back down to earth.  There’s obviously loads of life left in the car yet so should I get it fixed up?  I don’t know what the costs will be, I would guesstimate £500 - £800.  The car does seem very prone to paintwork damage so I could invest and then find in no time it’s a mess again.  Does anyone have any advice on this?  I’m guessing no-one will say buy a new car

ryanm8655

A bit of paint flaking off doesn’t sound like a huge job but I’ve not seen it. I’d get a quote in the first instance.

As for the gaming PC, do you really need it? Are there cheaper ways to achieve the same? E.g. upgrading parts of current set up.

Only you can say.

I was in your boat to an extent. Close to debt free but everything was on 0%. Would’ve made financial sense to save and clear the debt longer term but I just decided to get it gone. Feels like a weight lifted to be debt free. 

I now weigh up all purchases. Anything big I’ll save for. Never want to be in debt again.

Milestones

@ryanm8655 Thanks for the feedback.  The current loan was taken out as we had to get a second car (to make life work with the children\school run), it was only taken out in Feb this year, it was £7.5k - now down to £2.5k in 10 months.  The CCs were all 0%, except right in the beginning when I had one on 4.9%.  I totally understand what your saying and trust me I want the debts gone, I have been attacking the debts for 4 years, I guess it's just a bit of fatigue on my part along with a crap year and I'm sooo close.

I absolutely don't need the PC, it was supposed to be a reward for getting debt free - I'm not there yet, so I probably shouldn't look in the sales and then I won't know about any "good deals". 

ryanm8655

Milestones said:

@ryanm8655 Thanks for the feedback.  The current loan was taken out as we had to get a second car (to make life work with the children\school run), it was only taken out in Feb this year, it was £7.5k - now down to £2.5k in 10 months.  The CCs were all 0%, except right in the beginning when I had one on 4.9%.  I totally understand what your saying and trust me I want the debts gone, I have been attacking the debts for 4 years, I guess it's just a bit of fatigue on my part along with a crap year and I'm sooo close.

I absolutely don't need the PC, it was supposed to be a reward for getting debt free - I'm not there yet, so I probably shouldn't look in the sales and then I won't know about any "good deals". 

Ultimately it’s up to you ha. I was going to reward myself with an expensive watch for being debt free but now I’ve got there I’ve got other priorities. Completely know how you feel though!

enthusiasticsaver

I think it is probably not worth treating yourself to a debt free present unless you actually are debt free and can buy said item without resorting to  credit.  As  you are so close and have admitted you do not really need a new car or a gaming laptop I would hold off on both and think about some spending priorities for once the loan is gone.  I would hold off on perusing sales sites to stop you being tempted.  You have done so well in almost getting clear so it seems a shame to fall at the final hurdle no matter how crap the year has been although I agree with you in that 2020 will not be one most of us look back on fondly. 

You have a basic emergency fund but maybe increasing that to 3-6 months expenditure may be a good start.  Then decide on what is more important to you.  Getting the paintwork on the car sorted or replacing the car or the gaming laptop and deal with the priorities one at a time once the debt is gone.  

Well done on your progress so far though. 

Milestones

ryanm8655 said:

Milestones said:

@ryanm8655 Thanks for the feedback.  The current loan was taken out as we had to get a second car (to make life work with the children\school run), it was only taken out in Feb this year, it was £7.5k - now down to £2.5k in 10 months.  The CCs were all 0%, except right in the beginning when I had one on 4.9%.  I totally understand what your saying and trust me I want the debts gone, I have been attacking the debts for 4 years, I guess it's just a bit of fatigue on my part along with a crap year and I'm sooo close.

I absolutely don't need the PC, it was supposed to be a reward for getting debt free - I'm not there yet, so I probably shouldn't look in the sales and then I won't know about any "good deals". 

Ultimately it’s up to you ha. I was going to reward myself with an expensive watch for being debt free but now I’ve got there I’ve got other priorities. Completely know how you feel though!

Yep I need to hold out and see how I feel when I get there. Cheers

ryanm8655

Milestones said:

ryanm8655 said:

Milestones said:

@ryanm8655 Thanks for the feedback.  The current loan was taken out as we had to get a second car (to make life work with the children\school run), it was only taken out in Feb this year, it was £7.5k - now down to £2.5k in 10 months.  The CCs were all 0%, except right in the beginning when I had one on 4.9%.  I totally understand what your saying and trust me I want the debts gone, I have been attacking the debts for 4 years, I guess it's just a bit of fatigue on my part along with a crap year and I'm sooo close.

I absolutely don't need the PC, it was supposed to be a reward for getting debt free - I'm not there yet, so I probably shouldn't look in the sales and then I won't know about any "good deals". 

Ultimately it’s up to you ha. I was going to reward myself with an expensive watch for being debt free but now I’ve got there I’ve got other priorities. Completely know how you feel though!

Yep I need to hold out and see how I feel when I get there. Cheers

Really good effort on the debt clearance btw.

Milestones

enthusiasticsaver said:

I think it is probably not worth treating yourself to a debt free present unless you actually are debt free and can buy said item without resorting to  credit.  As  you are so close and have admitted you do not really need a new car or a gaming laptop I would hold off on both and think about some spending priorities for once the loan is gone.  I would hold off on perusing sales sites to stop you being tempted.  You have done so well in almost getting clear so it seems a shame to fall at the final hurdle no matter how crap the year has been although I agree with you in that 2020 will not be one most of us look back on fondly. 

You have a basic emergency fund but maybe increasing that to 3-6 months expenditure may be a good start.  Then decide on what is more important to you.  Getting the paintwork on the car sorted or replacing the car or the gaming laptop and deal with the priorities one at a time once the debt is gone.  

Well done on your progress so far though. 

@enthusiasticsaver Thank you and you're absolutely right, sound advice.  So back to my original plan once I'm debt free - I will have a reward of some description, then save at least 3 month expenditure emergency fund, I'll try to ignore the car paintwork, if it gets bad I'll get a quote.  Thanks

madaboutspots

Definitely hold off on the reward until you are actually debt free - you don't "deserve it" until then.... And absolutely save for it.... Your 1st debt free gift to yourself! Whoop whoop.... Worth the wait.

The car.... Cosmetic! Just look around you at all those people driving fancy motors that they don't actually own. Drive your slightly scruffy one around with pride! .... My Mum gave me her old car as a birthday gift - 57 plate, dent where my Dad backed into a post.... Love it - not envious of all those others in their fancy tanks - let 'em pay those big bills for cars they don't own. If it's reliable it's filling it's role.

You've come so SO far..... Hang on in there. Get a bit more in the buffer account, consider what you REALLY want as a reward for coming so far.... Maybe something for all the family if they've helped and supported along the way - or just for yourself... Either way, what is worth 4 years of sacrifice as a gift? 

Don't go back - that's the most important lesson. Well done. Great work.

Andyjflet

Well done, you are so close now, dont ruin it. Follow Dave Ramsey and the baby steps then pay cash for anything you want after you are out of Baby Step 3.

BS1 - £1000 emergency fund
BS2 - clear all consumer debt except mortgage.....everything
BS3 - save 3-6 months expenses as an emergency fund

MidsHollie

I’m assuming that you have a family, if you needed a second car for the school run. Why don’t you scrap the idea of a gaming PC and save up for a family treat to celebrate being debt free?
To be honest, I would be furious if we had worked so hard to be debt free for my partner then to splash out on something just for them!!