‘I don’t care about my credit score’: I have 5k in debt over multiple cards and companies. How can I pay off my debts and start saving for the future?

Hey Money Minder, I gotta be honest with you. I was in this gnarly lorry crash back in 2019 and now, finally feeling better, I decided to check out the mess of debts I’ve got. My credit score is in the dumps, which I found out when I tried to finance a car. So, I scrapped that idea and bought a cheap one outright. My mortgage is almost paid off, and I’m not interested in credit cards or any kind of credit going forward. I live by the motto: if I can’t afford it, I don’t need it. I’m all about a simple life. Now, here’s the thing: should I bother consolidating my debts and paying them off monthly? I’d rather stash any extra cash for a rainy day or my little boy’s future, without racking up credit again. These companies I owe money to? They hit me up every once in a while, but I haven’t paid them a dime in over 5 years. Some have been on my back for a decade. Honestly, they’re sketchy and I’m cool with owing them forever if that’s what it takes.

Cheers,

Response from THE MONEY MINDER:

Hello There,

I’m sorry to hear about the challenges you’ve faced due to the lorry crash and the impact it has had on your financial situation. It’s commendable that you are now looking to take control of your debts and make wise decisions moving forward.

Given your desire to live a simple life without credit, it may not be necessary to consolidate your debts and pay them off monthly if you’d prefer to save any extra money for a rainy day or your little boy’s future. However, it’s important to consider the long-term implications of leaving these debts unpaid, especially if they continue to accrue interest.

One practical approach could be to assess your current financial situation and prioritize paying off the debts with the highest interest rates or those that could have the most significant consequences if left unpaid. You could create a plan to gradually pay off these debts while still setting aside savings for emergencies and your son’s future.

It may also be beneficial to communicate with the companies you owe and see if there are any options for settling the debts that align with your financial goals. While you may not want to engage in credit in the future, resolving your current debts could help alleviate any potential legal or credit score repercussions down the line.

Ultimately, the decision on how to manage your debts should be based on what aligns best with your financial goals and values. Remember, it’s never too late to take control of your finances and make positive changes for the future.

Farewell from THE MONEY MINDER.