Your Questions Answered: What Do I Do Once My Debt Has Been Paid?

In almost a decade of offering help with debt in Scotland, we’ve helped a great number of people manage their debt productively, and watched as they succeed in paying it off and opening up new freedoms in their lives. This is incredibly exciting and incredibly rewarding for everybody involved, but we understand that it can also be a little scary – once your debt is paid you can feel like you’re back at the starting line with no idea how to navigate the race ahead.

This isn’t something that you should have to deal with alone, and although it’s normal to feel apprehensive, we also want you to feel excited and ready for the journey ahead of you. Here are a few key points to remember when you find yourself debt free.

Keep Your Budget

Priorities List

One you pay off your debt, your budget will probably have a little bit of growing room, but it’s important to avoid adding too many extravagant purchases and crucial that you don’t go off budget all together. You now have far more financial freedom, but instead of seeing this as an opportunity to fly free of any restrictions, think about the restrictions that you would benefit from and develop a modified budget which works accordingly.

Build an Emergency Savings Fund

When you have spare pennies to save, the first thing to start working towards is an emergency savings fund. Ideally, this should represent 3-6 months worth of living costs, giving you a net to fall back on should anything unexpected happen.

Start Planning Ahead

pocket money

It’s easy to fall into a ‘spend it while you’ve got it’ mindset when you’re used to things being tight, however if you can focus more on the future than the present then you’ll be far more comfortable in the long-term. In the process of paying off your debt, you will already have begun to think like a planner – now it’s time to cultivate that mindset and use it to focus on things like retirement savings (a top priority), and even investing.

If you still have a way to go before you can start looking into the options we’ve listed, then Debt Advisory Services (Scotland) Limited are here to help you. Contact us online or at 0800 011 2322 to speak confidentially with professionals who can help you to manage your debt.

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