Debt free (well, in control)

GinG · 2 May 2013 at 16:22

Well done guys, great feeling! I managed to clear 10k worth of debt and then save for a house deposit.

We have lived in the house now for 2 and a bit years and needed to put some purchases on the credit card of around £5k...still have it on the cards but having learnt from our mistakes we have managed to pay £15k towards our wedding in June (engaged last January) and will have no debt from it.

Should clear the £5k on cards by October time this year and then only have car finance and mortgage

Just shows it can be done, and what a feeling

Sliver · 2 May 2013 at 18:28

mrbell1984 said:
Wise man saves first.

Correct. I was not born wise though, it came with experience !

Mercenary Keyboard Warrior · 2 May 2013 at 18:48

And people wonder why the economy is shot, everyone paying debts and saving

Seriously though great news for so many here.

I was only discussion a few days ago with a friend how I believe we really will see a slight improvement in the economy starting to happen soon due to the reversal of the debt repayment that so so so many people seem to be doing.
Economy was previously boosted by borrowing and reversed quite dramatically by people stopping to spend and start to save so we went from spending more than we earned to spending less (as a collective)

And yet whats Ed Balls idea he still insists will boost the economy, cut VAT, try to persuade people to think short term again. Says it all really.

Freefaller · 2 May 2013 at 18:53

It's only worth lending if people can pay the loans back, else you cause more black holes for the economy.

Wildgoose123 · 2 May 2013 at 18:54

congrats!

D.P. · 2 May 2013 at 19:22

Paid off my 15K student loan 2 years ago in one lump sum. Given that I earn USD, the savings rate in the US, the cost to transfer money and how the student loans company are horrible at accepting thing like paying 6 months off in a row rather than monthly which would cost $50 just in transfer fees I just dumped my savings account in to the student loan.

Then i got a car and spent 9 months paying that of and so the last 6 months I have been trying to work back my savings.

The Funktopus · 3 May 2013 at 00:41

Whilst it's not the same, I'm due to complete a training scheme I've been on for the last 3 years almost in September. While I've been training, I've been living on a subsistence training allowance, which has been horrid, as I refused to take on student loans etc like others did so they could get laptops, go on holidays etc so that I could come out of the other side debt free.

Finally qualifying and being able to earn a decent wage after bowing and scraping for three years is going to feel like someone's foot being lifted off my throat. Roll on September.

regulus · 3 May 2013 at 06:46

Metalface Mark said:
25k of it was car, which i got shot off, i run about now in a 10 year old corsa that I was given free.

The other 50k was just accumulated debt from years, probably 80% of it was interest.

I would never take another personal loan, id urge everyone just to save up for anything you want. The only credit ill use now is credit cards on 0%.

I was lucky to realise that when I was 18 so never borrowed a penny from anyone, ever. But I can imagine it must be pretty great to be debt free. I call that every day

But in all seriousness, it probably comes from my grandad. Boy did he drill the issue of making debt into my head!

thepharcyde · 3 May 2013 at 08:47

Its a good feeling ain't it. Zero debt here too after working in London to clear it all.

macca672 · 3 May 2013 at 10:41

slowly clearing ours off, got rid of 15k, just another 6k to go

BigChief · 3 May 2013 at 10:48

Grats agnes.

Got 15 months left on my car then I will have an extra £200 of disposable a month. Come off the extortionate fixed rate mortgage I'm on in October so will get a better/lower deal and start overpaying. Student loan trickles away little bit by little bit and credit card balance (used to pay for honeymoon) can start coming down with any luck after the wedding (in 3 weeks).

Feeling in pretty good shape.

joeyjojo · 3 May 2013 at 10:56

[TW]Fox;24215496 said:
The best way to get rid of it is ignore it and pay it off via PAYE. Doing it any other way will cost you more in realterms.

True for those who started between 1998 and 2011 (1.5% interest rate) but not from those started in or since 2012, who would get shafted with 6.6% interest rate if they were finished today.

http://www.moneysavingexpert.com/students/student-loans-repay

Freefaller said:
It's only worth lending if people can pay the loans back, else you cause more black holes for the economy.

It's obviously not that simple FF, the benefits of a University-educated workforce are worth far more to the lender (the government) than the actual money lent in student loans.

Freefaller · 3 May 2013 at 12:36

I wasn't talking about student loans - I was talking about loans in general.

Metalface Mark · 3 May 2013 at 12:50

regulus said:
I was lucky to realise that when I was 18 so never borrowed a penny from anyone, ever. But I can imagine it must be pretty great to be debt free. I call that every day

But in all seriousness, it probably comes from my grandad. Boy did he drill the issue of making debt into my head!

I try to drum this into my kids, my old man was a spend thrift but had the means to do it, I was probably spoiled a bit as a kid so felt entitled to nice things without really thinking about what they cost at the time, I do wish I could go back in time and talk to myself as a youngster but hey ho.

3-4 months to pay off the last 6k and then im clear of debt for good.

aln · 3 May 2013 at 12:52

joeyjojo said:
True for those who started between 1998 and 2011 (1.5% interest rate) but not from those started in or since 2012, who would get shafted with 6.6% interest rate if they were finished today.

http://www.moneysavingexpert.com/students/student-loans-repay

It's obviously not that simple FF, the benefits of a University-educated workforce are worth far more to the lender (the government) than the actual money lent in student loans.

The real problem is how much easy money can be made in toy degrees because kids don't think about stuff they don't need to be paying for right now. If you ask me, a decent STEM education should be free (assuming you get a good enough mark), your typical art degree probably shouldn't. If you want to go to uni to get drunk and study a joke subject, you should probably pay for that yourself.

On topic, I have probably £75 - £80k debt.

weringo · 3 May 2013 at 13:09

agnes said:
It is indeed silly things like this, I think in total, I had around 9 minor payments spread all over the month which were always buried amongst the usual day to day purchases. Most of them 12 month subscriptions to things like magazines, discount things ect ect. They had just been renewing for ages. The total was around £130 a month coming out!!! It was relentless!

That's insane, I can't believe someone wouldn't notice that.

[TW]Fox · 3 May 2013 at 13:37

joeyjojo said:
True for those who started between 1998 and 2011 (1.5% interest rate) but not from those started in or since 2012, who would get shafted with 6.6% interest rate if they were finished today.

http://www.moneysavingexpert.com/students/student-loans-repay

True but nobody has started repaying those yet so its not possible that the student loans discussed in this thread are on those arrangements.

Metalface Mark · 24 Oct 2013 at 12:14

Metalface Mark said:
I was about 80k in debt 3 years ago when I split with my wife, made it my mission to get debt free, ive got about 23k to go, which should be gone by December (providing i dont buy anything this year.

Its not been nice, ive paid off as much as I can each month and not bought much, but I was fed up paying £1500 a month in loans when 2/3 were old debt so i knuckled down.

Will be lovely when I can say im debt free completely.

Debt free now - paid off my last loan yesterday.

It is indeed lovely to say Im debt free completely now :cool:

Outline · 24 Oct 2013 at 12:22

DAIR said:
Good Good.

Minor DDs.... I purchased a Macbook some 3 or 4 years ago from PC world. A few years later the HDD packed in. Never got round to fixing it so sold it dirt cheap.

Just last year I noticed a DD payment being made out to a PC world. Found out I opted for the insurance. You can imagine how annoyed I was.

Cancelled now though. More pennies in the bank

Nothing personal at you, but I honestly can't understand how people can have such a loose grip on their finances... You check statements maybe once a month, and make sure you know where all your money's going. Seems so easy...

Judgeneo · 24 Oct 2013 at 12:22

Metalface Mark said:
Debt free now - paid off my last loan yesterday.

It is indeed lovely to say Im debt free completely now

Congrats!