Thursday, 15 September 2016

Back to basics

I'm still feeling frustrated.

Despite putting $450 a fortnight against my credit card debt, each fortnight I've had some reason to use it and my net debt has barely moved.

Total credit card: $2926.81

Yes, you read that correctly. In the two months since I last wrote, I've paid less than $50 off the balance. I'm livid at myself.

My personal loan isn't faring that much better.


Total debt: $32,441.94

In January, my debt was $32,195. So I'm actually further in debt now than when I refinanced my loan, before the house move.

Its the interest that is killing me on the personal loan - I'm paying $300 a fortnight (over the minimum payment), and each month copping an interest hit of over $300. I know that this will get better when I'm whacking $750 against it each fortnight, but at the moment it just feels like treading water.

I am taking my credit card out of my purse. It needs to stay in the drawer, and not be used.

I need to tighten back up on my expenditure. Things got out of control during the house move, and then from there I made a very expensive purchase on my credit card ($2000 odd). I bought a Thermomix, and to be honest, I don't regret it at all. Other than wishing that I'd saved up for it rather than putting it on credit card. I purchased it straight away as there was a special on, and I do think that I got good value from doing it that way - or at least I would have if I'd been able to pay the credit card off in a timely fashion.

I ate out a lot during a period where we were clearing out my Nan and Pops house - and not only ate out paying for myself, but shouted other people lunch on a number of occasions. At $50 - $70 a pop, that was taking valuable money out of my weekly budget, and I was then putting other things on the credit card - like groceries.

I think perhaps I've been putting the wrong amount away into my bills account too - I raised that amount up, but I think I'm putting too much in there and not leaving myself enough in the weekly account to do what needs to be done. For example, I'm saving for medical things into the bills account, but paying for them out of the weekly account because the bills account isn't readily accessible. So I'm saving into the bills account, spending out of the weekly account, then paying for things that should be coming out of my weekly account with my credit card. Its a stupid, pointless cycle.

I've also had additional medical bills, with my daughter requiring a new medication and visit to a specialist. That set me back $500 in one single day!!

So. Back to basics for me. I WILL get myself back on track, I WILL have a $0 credit card by the end of this year, and I WILL get this debt cleared.

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