Active discussions

Meet the Other Phone. Child-safe in minutes.

Meet the Other Phone.
Child-safe in minutes.

Buy now

Please or to access all these features

Talk
Chat

Join the discussion and chat with other Mumsnetters about everyday life, relationships and parenting.

Original poster

Do you feel bad about buying things on finance?

34 replies

Iwasjustasking · 02/10/2022 13:03

This time 2 years ago I was £20000 in debt and have managed to crawl my way out of it, now only having £4500 in the form of a loan. Obviously I now have no savings as I have been paying my debt every month as much as possible. Today my boiler has finally given up and I can get one on finance for three years which is affordable, however I worry about having debt so much! How do you afford things like this? Would you have things on a pay monthly basis knowing that in three years time it will be paid and it is something you desperately need?

OP posts:
Original poster
Iwasjustasking · 02/10/2022 19:49

bump

OP posts:
GoldenElephant · 02/10/2022 19:52

It depends on what it’s for. Boiler, bathroom, necessary house stuff… as long as you’ve shopped around and feel confident you’ve got a fair price then yes for me it’s fine.

Holidays, nights out, clothes… nope!

BarbaraofSeville · 02/10/2022 20:02

It depends. We take things on finance if it's interest free and no better price paying upfront as you might as well.

You've done really well getting your debt down so much, and you've probably learned loads along the way. But you can't live for heating and hot water for as long as it takes you to get out of debt and save up for it can you? If the finance is free or very cheap interest, then go for it.

If the finance isn't interest free, you could look for an interest free credit card and pay for it that way.

Debt isn't always a bad thing. Expensive and unmanageable debt is. Carefully planned, affordable and cheap debt isn't, especially if it's being used to pay for essentials, rather than covering gaps in your basic budget or just facilitating extra 'nice to haves'.

FourTeaFallOut · 02/10/2022 20:02

While the end goal is to always pay off debt and amass a savings pot for stuff like this, a boiler is one of those necessities were you just have to bite the bullet and take on debt to make it happen.

Rentaroom33 · 02/10/2022 20:07

The only time I have taken out something on Finance is when it’s 0% and I have the cash anyway!

but I totally understand that I am privileged to be in that position that I don’t HAVE to take anything out on finance. If I had to and I had no choice then I would but ONLY for essentials

Original poster
Iwasjustasking · 02/10/2022 20:10

Thankyou and @BarbaraofSeville thats a good way to look at it, the panic is always there just incase it happened again (it’s a long story of how the debt was accumulated) but I’m in a much better position now and I almost feel scared of debt now, even if it’s for a necessity such as a boiler!

OP posts:
Dimsumbun · 02/10/2022 20:11

It’s your boiler so it’s essential unfortunately so finance it will have to be, Whats the APR like though and is there any chance of getting a loan or credit card at 0%. It’s good you have changed your mindset about debt.

Original poster
Iwasjustasking · 02/10/2022 20:15

I probably could get a loan but there is a chance in the near future my car is going to give up completely, so I didn’t want to go down the loan route! Tbh I’ve looked at British Gas and boxt and although both have a high apr I could afford to put a small deposit down to being down the monthly payments. Thankyou, honestly I never ever want to get on debt again!! It worries me so much!

OP posts:
Original poster
Iwasjustasking · 02/10/2022 20:15

Sorry for the typos, that’s watching tv at the same time!

OP posts:
Lcb123 · 02/10/2022 20:18

I’d do it for a large and essential item where it’s 0% - we did it for a new sofa. Boiler is essential!

satelliteheart · 02/10/2022 20:26

I never ever buy anything on finance, the only debt dh and I have is our mortgage. I understand the boiler is an essential and you don't have the money, but what was the previous £20k for? It can't all have been essentials like a boiler which suggests your attitude to money is poor. You're already planning to get a car on finance in the near future. If we can't afford something we don't buy it, it really is that simple. Without monthly outgoings to cover sofas we couldn't afford or holidays we didn't need we're able to save up so when our boiler breaks we can replace it with cash. Finance is a slippery slope and I know too many people with an attitude of "oh, it's just £100 a month" etc but those all add up and suddenly your entire income is earmarked for finance payments and you're up shit creek when your boiler breaks etc

IsAinmDummm · 02/10/2022 20:43

I'd treat something like the boiler like a bill that needs to be paid. I would avoid putting things like clothes, meals out etc on credit.

goodnighthunny · 02/10/2022 21:04

@satelliteheart I am not so sure, and I think your comments to the OP are very unkind. She has evidently had a brush with debt, for whatever reason (none of our business) and has done fantastically well to claw her way back out of it.

Finance, when used sensibly, is another useful weapon in one's financial arsenal. I was brought up with the idea that "debt = bad" (unless it's a mortgage, in which case it doesn't count). In fact, credit can be a very good thing so long as you have a proper plan to repay it within the given time, and so long as you are using it for something essential. I would never dream of taking out credit for a holiday, for instance, but would for a boiler. In fact, I have a PCP car loan (never imagined I would - but it's the right thing for me) and have two interest-free credit cards which I took out to buy big-ticket items - including, yes, a boiler. I have 100k in the bank so could have paid for the car and the other items in cash, but it suits me better to use credit.

So no, credit isn't always a bad thing. And I think the OP should be given a huge pat on the back for what she has done, not a kicking for her previous lack of financial acumen.

FindingMeno · 02/10/2022 21:07

FourTeaFallOut · 02/10/2022 20:02

While the end goal is to always pay off debt and amass a savings pot for stuff like this, a boiler is one of those necessities were you just have to bite the bullet and take on debt to make it happen.

This

2ManyPjs · 02/10/2022 21:14

Well done on clearing your debt, that is some feat!

If 0% interest and you can afford the payments then it's not a bad thing at all, and can work in your favour for keeping a good credit score. Your past debt (and now fear of debt) also works in your favour because you clearly have a sensible approach now. If it's a high APR move it onto a 0% credit card.

mrsjimhopper · 02/10/2022 21:21

I feel bad generally.

There isn't any choice in your situation. so you will have to buy the boiler in finance. This may mean a more expensive provider that offers interest free payments, but you need it so have to pay it. For example British Gas compared to a local gas fitter/plumber who is unlikely to take even a credit card. In this case you can't live without it so just get it and I'd pay the lowest deposit and ring fence the difference (for a car?).

How do I afford it? save up and have an emergency fund of 1k BEFORE starting to pay of debts or you end up in this perpetual cycle of emergency debt.

Dave Ramsey is really good in debt management and this is his tip.

Once you have paid off the other debts you can overpay on this and pay it off.

We have a boiler fund and washer fund as both of these are 12 years old and the washer is a Miele work horse. Boiler is hanging on in in there!

No idea how much is a boiler these days?

Good luck OP hang on in there. I was terrible and had everything on credit 15 years ago.

earsup · 02/10/2022 21:25

BG will charge you a lot more than a small company and will only sub out the work....friends used them...total incompetence....5 visits to fit one radiator....so avoid them....
i have a 2% annual credit card....its free money really....just look at how much debt the govt is in....boggling....nobody really panics....the whole world is in huge debt !!

Original poster
Iwasjustasking · 02/10/2022 22:11

@satelliteheart not that it is anyones business but the debt was because I had to go on long term sick for 18 months as someone in my immediate family was extremley poorly and I couldn’t work at the same time, I am now back at work full time so managed to pay the debt off, I had to try and keep a roof over my head, food etc on ssp for 18 months. £20000 debt was approx 1k a month, which for my mortgage, food and bills was horrific but thanks for your absolute judgment when you know nothing about my previous situation. I need a car for work as travel is part of my role, my car is 14 years old and I’m hoping it will last.
The long term goal is to pay off the last bit of debt and start the saving pot again! Tbh I can do both now, put a good chunk in the savings and pay the last bit of debt! Thanks so much everyone for your advice!

OP posts:
AUDHD · 02/10/2022 22:18

Well done on clearing your debt, OP!
Get yourself the boiler if you can. I’m sure you know what you’re doing and you’ll keep up with payments. I know it’s scary but you’ve done so well so far

Original poster
Iwasjustasking · 02/10/2022 22:22

Thanks for all the kind messages! I am the kind of person who runs things into the ground before I buy a new one and sometimes inevitable things come up don’t they! I have certainly never paid for holidays etc on credit and I never would! I think I will treat it as another bill, I know the apr is high but I don’t want another credit card after I’ve worked so hard to pay it off, this feels like finance for a specific item not a credit card that might have a huge credit allowance if that makes sense!

OP posts:
satelliteheart · 02/10/2022 22:26

@Iwasjustasking Lots of people need a car for work. You've had 14 years of driving your current car in which to save up for a replacement. I appreciate it seems you built up your debt due to an unforeseen change in circumstances so this isn't necessarily personally aimed at you, but in general when people drive a car for many years but then have to buy a replacement on finance, it's due to poor financial management.

I don't really understand why you've taken so much offense to my post. You asked for people's opinions on taking out finance, I gave mine, and then you got arsey about my "absolute judgement". Don't ask if you don't want to hear answers! And no, I don't know anything about your previous situation. But you came on a public forum, gave a small amount of information about your circumstances and asked people's opinions. Of course people have responded based on the limited info you gave rather than the full story which we don't have

CurlsandCurves · 02/10/2022 22:33

Get the boiler finance. Had you not been what you’ve been through it sounds to me like you would have had savings in place for this situation. But life happens, you’ve dealt with what’s come your way.

Just make sure the finance option is the best you can get. If you can get your hands on a 0% credit card to fund it, for example.

Ladyofthepeonies · 02/10/2022 22:34

@Iwasjustasking try heatable too we used them and got 2 years 0% on our boiler. I also got cash back from Topcashback. But well done on paying it off from your explanation sounds like you only got in debt for sensible reasons. You are sensible and this is necessary

Original poster
Iwasjustasking · 02/10/2022 22:38

@Ladyofthepeonies Thankyou I will check them out!

OP posts:
allboysherebutme · 02/10/2022 22:38

A boiler is a necessity of course do it, just don't spend the rest of your money on other things unless you really need them. X