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  • FIRST POST
    • jonjamie1970
    • By jonjamie1970 25th Jan 11, 11:13 AM
    • 477Posts
    • 355Thanks
    jonjamie1970
    The additonal Benefits of Being Debt Free
    • #1
    • 25th Jan 11, 11:13 AM
    The additonal Benefits of Being Debt Free 25th Jan 11 at 11:13 AM
    OK so I'm not debt free yet but nearly there. I realised today how much more is available to someone with cash or no debt, I will make some examples of these benefits that are rightly or wrongly not always within reach or available to those of us that have low or little funds.
    1. Car tax, paying annually rather than in 6 months each time
    2. Car insurance, save up to 26 % in interest by paying in 1 sum rather than installments.
    3. Obvious - Bank charges
    4. Paying for fuel on a credit card and earning points, pay the complete balance next statement
    Any more you can think of ??
    Last edited by jonjamie1970; 25-01-2011 at 12:56 PM.
Page 1
    • LAM2011
    • By LAM2011 25th Jan 11, 11:28 AM
    • 1,427 Posts
    • 5,359 Thanks
    LAM2011
    • #2
    • 25th Jan 11, 11:28 AM
    • #2
    • 25th Jan 11, 11:28 AM
    hi - thanks for that - you forget about those kind of things whilst you are just trying to get by. I am sure there are more but my head is a shed today. I just cant wait to have some money for me instead of 'wasting' it on ccard interest.
    Last edited by LAM2011; 25-01-2011 at 11:49 AM.
    • secretshopper75
    • By secretshopper75 25th Jan 11, 11:37 AM
    • 1,272 Posts
    • 12,080 Thanks
    secretshopper75
    • #3
    • 25th Jan 11, 11:37 AM
    • #3
    • 25th Jan 11, 11:37 AM
    Being assured you'll have some money left at the end of the month
    • incesticde
    • By incesticde 25th Jan 11, 11:38 AM
    • 450 Posts
    • 251 Thanks
    incesticde
    • #4
    • 25th Jan 11, 11:38 AM
    • #4
    • 25th Jan 11, 11:38 AM
    1. Looking forward to mail
    2. Not having to wait till payday to buy stuff
    3. A large unexpected bill has you shrugging and saying "Oh well, that's why we have savings"
    4. Realising you have 50 in points on your nectar card
    5. Sleeping well
    "I don't want to sound cold and un-caring, but I am those things so that's the way it comes out" - Bill Hicks
    • yorkshire-lad
    • By yorkshire-lad 25th Jan 11, 11:40 AM
    • 325 Posts
    • 696 Thanks
    yorkshire-lad
    • #5
    • 25th Jan 11, 11:40 AM
    • #5
    • 25th Jan 11, 11:40 AM
    the main point for me would be knowing that i do not owe anyone any money.
    and that all my wages will be going to ME, and me only.

    at the moment, when i get paid about 400 comes straight out, and it really is alot of brass and especially when you cant see nothing for it.

    tbh, i have been paying my loan nearly 4 years and its just 'normal' for 180 to come out every month.
    i will probably faint when i see a full months wage and knowing nothing will be coming out lol.
    Debt at LMB April 2009= 14,980
    Debt free Sometime in November 2013
    Saved over 10k (plus parents help) to buy my first house in Sept 2014
    2017 Savings = 10000+
    Best thing I did was joining this forum and clearing my debt
    • Gettingtherequickly
    • By Gettingtherequickly 25th Jan 11, 11:54 AM
    • 3,812 Posts
    • 16,839 Thanks
    Gettingtherequickly
    • #6
    • 25th Jan 11, 11:54 AM
    • #6
    • 25th Jan 11, 11:54 AM
    Not just car insurance, I renewed my contents insurance and not only did I pay it all in one go, I also got it for less than half of the renewal from previous insurers!

    Also, although knowing that I can afford to pay for utilities on receipt of bill now, it is so satisfying to be able to make a payment in advance and ultimately have a large chunk of the bill paid before the bill comes in. I refuse to set up a dd payment as the reconciliation process, when it is done, is painful. This way I can pay the smaller bills when they arrive, but I am ultimately controlling the big winter bills, not the utility company.

    It is also very nice knowing I can decide how to pay for my new car this year, do I want finance of some sort, or do I simply wait until the end of the year and pay in cash. Having started the exercise, it is disgusting that if I place a 50% deposit and want to finance the balance over a maximum of 2 years, ideally 1, the interest is horrific in comparison to taking out finance over 5 years - I don't want to be lumbered with debt for that length of time!!!!
    A smile costs little but creates much
    • dreamdreamer
    • By dreamdreamer 25th Jan 11, 12:12 PM
    • 618 Posts
    • 1,529 Thanks
    dreamdreamer
    • #7
    • 25th Jan 11, 12:12 PM
    • #7
    • 25th Jan 11, 12:12 PM
    A large unexpected bill has you shrugging and saying "Oh well, that's why we have savings"
    This is the one I can't wait for - not living in dread that something is going to happen that will totally cripple you!

    Also: being able to put all the money i waste on debt repayments into high-interest savings and watching them give ME money rather than the other way around!
    DEBT FREE 3rd Sept 2011
    (Debts at highest 15.8k Nov '08)
    Student Loan paid off July 2014
    First Direct Regular Saver #2: 2700 ** Santander 123: 13,106
    Car Insurance/Tax Fund: 305 ** Present Savings: 525 ** Disneyworld Fund 100

  • Daeheryn
    • #8
    • 25th Jan 11, 12:38 PM
    • #8
    • 25th Jan 11, 12:38 PM
    What a great thread! It's so easy to forget that there is all this to look forward to at the end of it sometimes, it just seems like a never-ending struggle!

    But I think for me the paying the car tax and insurance anually is the big one, that and no more anxiety and sleepless nights - just being able to relax a bit instead of feeling like I'm always playing catch-up!

    Thanks for the reminder that there's lots to look forward to in the end!
    Pay off as much as you can in 2011 challenge #116 394.24/6722.58
    • andymc29
    • By andymc29 25th Jan 11, 12:47 PM
    • 461 Posts
    • 422 Thanks
    andymc29
    • #9
    • 25th Jan 11, 12:47 PM
    • #9
    • 25th Jan 11, 12:47 PM
    For me here's a few:

    Going out for meals without feeling guilty for spending money
    Not being worried when taking your car for a repair incase you need to use your credit card
    Not living from paycheck to paycheck
    Having money in savings without thinking it should really be paying off debt
    Sleeping much better
    Being able to focus on things better without thinking about debts
    Better relationship with my GF as she hates the idea of debt
    Buying the odd treat for myself without feeling guilty
    Not feeling like a failure
    Bank Loans: 25000 0- Barclay Card 14%: 2500 0- Student Loan: 12,500 0
    Current total 40,000 0 (100% PAID OFF)
  • TMoose
    I agree with most of the above... although since I don't own a car, I don't have the pleasure of buying car tax!

    However, having been DF for a year now, I think the absolute joy of it, for me, is being able to log into my online banking and see positive numbers. That grow. And that are ALL MINE!!!

    That and knowing that I now have the funds to enjoy the decision of "what should I spend it on? (if anything) A holiday? A load of new books? Invest it? Save for a house? Tickets to Glastonbury?" The options are endless, and deciding is FUN!
    Moose
    • dreamdreamer
    • By dreamdreamer 25th Jan 11, 1:00 PM
    • 618 Posts
    • 1,529 Thanks
    dreamdreamer
    Yeah that's a much better decision to have to make than "what debt shall I pay off first?" lol.
    DEBT FREE 3rd Sept 2011
    (Debts at highest 15.8k Nov '08)
    Student Loan paid off July 2014
    First Direct Regular Saver #2: 2700 ** Santander 123: 13,106
    Car Insurance/Tax Fund: 305 ** Present Savings: 525 ** Disneyworld Fund 100

  • Silvafox
    Some great ones on here, my additions would be:

    Not getting a feeling of dread when a car pulls up outside
    Not getting a panicked feeling when someone knocks on the door
    Not having to empty the coppers jar to buy food
    PMA - Positive Mental Attitude

    It works for me - you try it!
  • TMoose
    Yeah that's a much better decision to have to make than "what debt shall I pay off first?" lol.
    Originally posted by dreamdreamer

    Actually, the frustrating thing was "what debt shall I pay off first?" wasn't really a decision - it was set by interest rates (and DCA's). Once that was set, it was just a long, hard, dull, slog. I get bored easily!

    I now spend time every day looking at my budget for the month, tweaking the numbers as I over/underspend and seeing the impacts of making changes. I'm basically a sad, sad, little man. But debt free

    Moose
    • jonjamie1970
    • By jonjamie1970 25th Jan 11, 1:27 PM
    • 477 Posts
    • 355 Thanks
    jonjamie1970
    Actually, the frustrating thing was "what debt shall I pay off first?" wasn't really a decision - it was set by interest rates (and DCA's). Once that was set, it was just a long, hard, dull, slog. I get bored easily!

    I now spend time every day looking at my budget for the month, tweaking the numbers as I over/underspend and seeing the impacts of making changes. I'm basically a sad, sad, little man. But debt free

    Moose
    Originally posted by TMoose
    What spreadsheet, if you use one, do you do this on ?
    • ixwood
    • By ixwood 25th Jan 11, 11:52 PM
    • 2,512 Posts
    • 1,987 Thanks
    ixwood
    Earning interest instead of paying it.

    Having savings and a nice future/retirement etc.

    Being able to work less if desired.

    Not wasting money on stupid things, as you've earned and saved it, which makes you appreciate it's value so much more. Debt is very easy to spend/waste, as you haven't had to earn it. Yet.

    • ixwood
    • By ixwood 25th Jan 11, 11:55 PM
    • 2,512 Posts
    • 1,987 Thanks
    ixwood
    Is the TV license more if you don't pay it upfront?

    Being able to get a mortgage and buy a house.

    Being used to having money and it not "burning a hole in your pocket".

    • ixwood
    • By ixwood 26th Jan 11, 12:15 AM
    • 2,512 Posts
    • 1,987 Thanks
    ixwood
    Being able to take advantage of true bargains, when the opportunity arises.

    Being able to afford to have your full maternity leave and enjoy that precious time with your little one.

    Increasing your net worth/wealth over time, rather than your debt.

    Being able to help adult children start off well in life.

    Feeling content and not needing to try and keep up with the Jones, or acting well off.

  • sparklystar
    not having a mild panic every time use debit card to buy petrol/food at the end of the month as there will be surplus cash in account
    • Karb
    • By Karb 26th Jan 11, 6:36 AM
    • 773 Posts
    • 3,850 Thanks
    Karb
    For me, most of it would centre around the sense of wellbeing. Being more relaxed, less stressed, and, as others have already mentioned, knowing that I'm earning interest instead of paying it. Some of the more tangible ones that I don't think have been mentioned yet are:

    Paying utility bills when they arrive instead of having to wait until payday, and therefore qualifying for the prompt payment discount next time around.

    Being able to bulk buy groceries when they are on special offer instead of only being able to spend what's within the grocery budget for the week

    Being able to pay cash instead of credit card. Even if you don't have to pay interest its just too easy to overspend when you aren't handing over hard cash.

    Buying an annual season ticket and/or car park pass for travel to work instead of weekly or monthly ones
    • determined new ms
    • By determined new ms 26th Jan 11, 7:16 AM
    • 7,043 Posts
    • 41,568 Thanks
    determined new ms
    This is the one I can't wait for - not living in dread that something is going to happen that will totally cripple you!

    Also: being able to put all the money i waste on debt repayments into high-interest savings and watching them give ME money rather than the other way around!
    Originally posted by dreamdreamer
    you know what I had to wipe out my savings the week before last on my car (1500) which still was a kick in the goolies I can tell you! The only saving grace I had was at least we are out of debt (as of 25.10.10) and it was savings rather than the ccGutted though as my little nest egg was savings for our plans to emigrate...

    For me one of the best fringe benefits has been as it had to be a lifestyle change to get here its so much better to be in control and savy with my money. Shopping around, getting the best prices, being able to go days without spending money, working out how much I can afford to spend on groceries and then sticking to it - all that stuff that's the best things, imho, about getting debt free. Those are the things that mean 1. I get to choose what I spend my money on (and a big chunk goes on the things I want i.e. we go to Morocco in a couple of weeks, all paid for out of cash and its costing 460 for flights & accomm for 2 ppl for 10 days ) 2. and if worst came to worst I know we could cope with some tough times until things brightened up. That's a sense of security money can't buy
    DF as at 30/12/16
    Wombling 2017 3016.55/Roadkill 8.73
    Wombling 2018 145.73/RK 0.04
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