So close to debt freedom... preparing for what's next

GeorgianaCavendish

Congratulations on being so close to the finish line! I remember having similar feelings of wading through treacle towards the end of my personal loan repayments, but will feel amazing when that final loan payment is made. 

Very interested to hear more about the charities too! 

Strether2020

Thanks so much, @GeorgianaCavendish! I guess the good thing about having staged loan repayments is that you know that the payments WILL be made on particular days. But I'm feeling so impatient now!

I've done some research over lunchtime today on debt-related charities to support so will post that in a moment. 

Strether2020

To try and motivate myself, I'm thinking about ways to help others when I'm finally free from my debts. I'd like to use the same amount I've been paying towards my debts each month to save and invest, to overpay the mortgage a bit, and to make some charity donations. I really want to help others who are struggling with debt: it'll be a way to make something meaningful out of what has often felt like a meaningless experience, and to make my new financial ways about more than just myself. 

So, which charities are making a difference? 

Stepchange do a massive amount, not only advising people but also campaigning. I can't work out how to donate, or if they need or want donations.

Mind would be a good place to support, as the connection between mental health and debt is so strong (Money and mental health | Mind, the mental health charity - help for mental health problems)

I came across the Money and Mental Health Policy Institute (Home | Money and Mental Health Policy Institute - a charity founded by Martin Lewis) which does a lot in research and campaigning on these issues. Not clear if they'd value small donations!

There seem to be some brilliant local charities too - such as this one, in Leeds: Money Buddies - Free Debt and Budgeting Advice - Leeds. They look like they give all sorts of help to people, including help writing to creditors... They also have a donate button! 

And obviously for moments when people feel really alone with debt (most of us on this forum have been there...), Samaritans are fantastic. 

I guess I want to find a balance between supporting charities that actually give advice and support to people struggling with debt, charities that research into the effects of debt, and charities that campaign on behalf of people in debt (some of these do all three). I'd be really interested to know if anyone had any thoughts!

Meanwhile, back in my current financial reality, I did a big shop earlier today including some stuff needed for Christmas, and aced the vouchers/discount! So I went under budget and have transferred £7.20 to my credit card!

CL21

I recommend Vanguard for Isas - I have one for my daughter and one for me. I’m only going to save a very small amount next year while I’m paying off my debt but will absolutely go back to saving as much as possible when I’m done. They’re both stocks and shares Isas and the vanguard platform is really easy to use - both have done well so far although not much in them yet. I’m not sure about ethical investments though, sorry. 

You should go great guns on the saving if you’ve been used to spending £200 a month on debt. Going to use this diary as my inspiration for when I’m also debt free as I’m a year behind you. Can’t wait to see how you get on 

AllNightDiner

Great thinking on the charities, much to glean from it. One note in passing - it is so sad that basic financial literacy is not taught in schools. 

Along with the charities you mention, it looks like one can volunteer with the Citizens Advice Bureau - I would post the link but I’m not allowed yet as too new to the forum! But searching “Citizens Advice Burrau” and “volunteer” should bring it up.

it is really nice to read how you are structuring your time and thoughts, post-debt!

enthusiasticsaver

Well done on almost clearing the debt and good that you had some RL support. Donating to debt charities is a good idea but as far as I know stepchange don’t accept donations from individuals. They are funded through contributions from banks/government/IVA fees and donations from other financial institutions. 

Thinking about your aims and objectives post debt is a good idea. Saving is an obvious one. We rarely took on debt even in our twenties (except for a mortgage) due to an aversion to it probably because of my occupation at the time (mortgage arrears counsellor for a high street bank) so always used a formula of all spare money being split into short term savings for holidays, household good replacement etc, medium term savings for new car, home improvements or long haul holiday and long term savings for early retirement and paying off mortgage and helping our children through university and on to housing ladder. Thinking about how much spare money you will have when the debt is gone and planning for the future can be as rewarding if not more so as clearing debt. What you don’t want to do is to up spending mindlessly just because your budget won’t be as tight. 

Strether2020

CL21 said:

I recommend Vanguard for Isas - I have one for my daughter and one for me. I’m only going to save a very small amount next year while I’m paying off my debt but will absolutely go back to saving as much as possible when I’m done. They’re both stocks and shares Isas and the vanguard platform is really easy to use - both have done well so far although not much in them yet. I’m not sure about ethical investments though, sorry. 

You should go great guns on the saving if you’ve been used to spending £200 a month on debt. Going to use this diary as my inspiration for when I’m also debt free as I’m a year behind you. Can’t wait to see how you get on 

Thanks so much for the recommendation! I'll definitely look into this. Saving for my daughter is a huge motivation! 

Ethical investing looks hugely complex... but if I have the sense that my money is doing something good in the world while I save and invest (not funding damage to the environment - and also not profiting from other people struggling with debt!) that would be amazing. Anyway, I've got three or four months to figure this out! 

And I look forward to cheering you on as you head into freedom from debt! I honestly can't believe I've reached this point, but if I can, you can! 

Strether2020

AllNightDiner said:

Great thinking on the charities, much to glean from it. One note in passing - it is so sad that basic financial literacy is not taught in schools. 

Along with the charities you mention, it looks like one can volunteer with the Citizens Advice Bureau - I would post the link but I’m not allowed yet as too new to the forum! But searching “Citizens Advice Burrau” and “volunteer” should bring it up.

it is really nice to read how you are structuring your time and thoughts, post-debt!

Thank you! This is such a good point (about financial literacy). I did a bit more research last night and came across some organisations that do a lot in this space. I was pretty taken with the Just Finance Foundation - they work with community organisations and schools. 

In time, I could really imagine volunteering with the CAB or an equivalent. I'm not quite there yet - too caught up with my own stuff still. I really want to make something meaningful out of my experience and my journey. When I'm feeling fed up, I feel frustrated with myself for wasting so much money on debt - it just feels pointless and meaningless. But if I can bring something to others, then that gives it all a bit of meaning. 

Strether2020

enthusiasticsaver said:

Well done on almost clearing the debt and good that you had some RL support. Donating to debt charities is a good idea but as far as I know stepchange don’t accept donations from individuals. They are funded through contributions from banks/government/IVA fees and donations from other financial institutions. 

Thinking about your aims and objectives post debt is a good idea. Saving is an obvious one. We rarely took on debt even in our twenties (except for a mortgage) due to an aversion to it probably because of my occupation at the time (mortgage arrears counsellor for a high street bank) so always used a formula of all spare money being split into short term savings for holidays, household good replacement etc, medium term savings for new car, home improvements or long haul holiday and long term savings for early retirement and paying off mortgage and helping our children through university and on to housing ladder. Thinking about how much spare money you will have when the debt is gone and planning for the future can be as rewarding if not more so as clearing debt. What you don’t want to do is to up spending mindlessly just because your budget won’t be as tight. 

Thanks so much for this - that's really helpful (and interesting about Stepchange). I really like your idea of short-, mid- and long-term saving. There's a sense of control and intention, I imagine, that must be really satisfying. One of the best things to come out of my experience so far is to have left behind that sense of mindless spending. I think that before, when I was in the endless debt cycle, I used to fantasise about some magic moment when the debts had disappeared and I never had to think about money again. Now I can see that that moment will never come - but there's an alternative, realistic way to be. 

Thanks again for taking the time to comment! 

AllNightDiner

Strether2020 said:

AllNightDiner said:

Great thinking on the charities, much to glean from it. One note in passing - it is so sad that basic financial literacy is not taught in schools. 

Along with the charities you mention, it looks like one can volunteer with the Citizens Advice Bureau - I would post the link but I’m not allowed yet as too new to the forum! But searching “Citizens Advice Burrau” and “volunteer” should bring it up.

it is really nice to read how you are structuring your time and thoughts, post-debt!

Thank you! This is such a good point (about financial literacy). I did a bit more research last night and came across some organisations that do a lot in this space. I was pretty taken with the Jff tthey work with community organisations and schools. 

In time, I could really imagine volunteering with the CAB or an equivalent. I'm not quite there yet - too caught up with my own stuff still. I really want to make something meaningful out of my experience and my journey. When I'm feeling fed up, I feel frustrated with myself for wasting so much money on debt - it just feels pointless and meaningless. But if I can bring something to others, then that gives it all a bit of meaning. 

Strether2020 said:

AllNightDiner said:

Great thinking on the charities, much to glean from it. One note in passing - it is so sad that basic financial literacy is not taught in schools. 

Along with the charities you mention, it looks like one can volunteer with the Citizens Advice Bureau - I would post the link but I’m not allowed yet as too new to the forum! But searching “Citizens Advice Burrau” and “volunteer” should bring it up.

it is really nice to read how you are structuring your time and thoughts, post-debt!

Thank you! This is such a good point (about financial literacy). I did a bit more research last night and came across some organisations that do a lot in this space. I was pretty taken with **they work with community organisations and schools. 

In time, I could really imagine volunteering with the CAB or an equivalent. I'm not quite there yet - too caught up with my own stuff still. I really want to make something meaningful out of my experience and my journey. When I'm feeling fed up, I feel frustrated with myself for wasting so much money on debt - it just feels pointless and meaningless. But if I can bring something to others, then that gives it all a bit of meaning. 

Strether2020 said:

AllNightDiner said:

Great thinking on the charities, much to glean from it. One note in passing - it is so sad that basic financial literacy is not taught in schools. 

Along with the charities you mention, it looks like one can volunteer with the Citizens Advice Bureau - I would post the link but I’m not allowed yet as too new to the forum! But searching “Citizens Advice Burrau” and “volunteer” should bring it up.

it is really nice to read how you are structuring your time and thoughts, post-debt!

Thank you! This is such a good point (about financial literacy). I did a bit more research last night and came across some organisations that do a lot in this space. I was pretty taken with the  they work with community organisations and schools. 

In time, I could really imagine volunteering with the CAB or an equivalent. I'm not quite there yet - too caught up with my own stuff still. I really want to make something meaningful out of my experience and my journey. When I'm feeling fed up, I feel frustrated with myself for wasting so much money on debt - it just feels pointless and meaningless. But if I can bring something to others, then that gives it all a bit of meaning. 

No self-flagellation: you must give yourself only praise for working yourself out of a problem! 

Just tonight, I read this reflection from Maya Angelou: 

“I wrote about my experiences because I thought too many people tell young folks, ‘I never did anything wrong. Who, Moi? - never I’… They lie like that and then young people find themselves in situations and they think, ‘Damn I must be a pretty bad guy. My mom or dad never did anything wrong.’ They can’t forgive themselves and go on with their lives.”