Do you feel bad about buying things on finance?

[Iwasjustasking]

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?

You need a starter emergency fund for costs like this.

I listened to this guys audio book last year, 'The meaningful money handbook'. Lots of good advice. Well done on paying off so much of your debt so quickly OP. Annoying about the boiler, but a minor set back in the grand scheme of things.

@BarbaraofSeville has hit the nail on the head here "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'. "

I always say to think of 2 things, what you have to show for the debt i.e. thinking about the life of the object versus the length of time to pay off the loan & the monthly repayment versus the cost of consequence of NOT having the object or asset.

For example:
Think about someone who has the opportunity to buy a small new car on a hire purchase that costs £150 a month for three years and at the end of the three years she can hand back in, this includes insurance. She is currently paying £450 on public transport but is often late for work. She calculates that even with fuel she'll be at least £100 a month better off, and will get to work quicker and more reliably with the car than using public transport. Therefore it's probably a really good idea to get it.

OP you have done fantastically well to pay off debt .. you deserve lots credit!
Buy your boiler .. it is a necessity.
If you feel you have the stamina let us know how you paid off your debt!

OP have you looked at Boxt?

I think they're owned by Worcester Bosch but you can enter your details on their website for a quote, plus it says they do 0% finance although there are other options so I'm not sure how easy it is to qualify, but if you're now back at work and have paid your debt on time, I'm sure you'll be fine.

www.boxt.co.uk/finance

@Iwasjustasking just realised I have a refer a friend code too if you use heatable that gives you £50 off, if you do decide to use them

@satelliteheart OP’s attitude isn’t poor, she’s paid off nearly all the debt! It’s good you only have your mortgage but some people have no option but to go into debt. No need to be so judgemental.

@Iwasjustasking you need a boiler so one for an interest free credit card id say…

Some good options on here about boilers and finance I would check them out to make sure you are getting a good deal! Least amount of interest/apr the better.

Now with your credit card debt:
Are you paying interest?
If not try and get on a 0% card and don't use it for anything else.
Pay of the debt.

When your car eventually dies

You can use your credit card which will probably have a good 0% on purchases by then. or get a cheap loan for a new one. Not car finance as it's expensive apr.

It's good to have 2 credit cards. As you can transfer to 0% if need to be from one to other.

Download the apps for the banks and manage your money that way.

I’ve used interest free credit for a number of things. None of them were holidays or what I would regard as frivolous purchases. I paid for eye surgery when the NHS waiting list was two years and for necessary dental treatment, because there is no NHS dentistry.

If you want to bring the price down I’d recommend a glow worm boiler. Our fitter said they’re as good as Worcester but about £700 cheaper.