Tuesday, 10 October 2017

Starting again... again

So things have really, seriously changed around here.

I've moved 1600km away from where I was previously based.

I've taken a job with a $20K a year increase in wages.

I've taken a home with a lower weekly rental cost and no on-top outgoings, which has lowered my monthly costs.

BUT, there were expenses in getting here, obviously.

The debt landscape has changed. I'm looking a little worse off than I was before, but I'm in a stronger position to deal with it, which is positive. I know that this move has been the best thing for me to do, personally and professionally.

Work has offered to pay $4000 towards my moving expenses, however it will be paid as an incentive bonus - one payment at 3 months and one at 12 months. Which is fine by me. Those will both go to debt when they come in and I'll continue to work at paying down the balances in the meantime.

So, how bad is it?

Total debt:

$13,680 Credit Card   - this is moving expenses
$32,178                    - this is the loan from my Dad, zero interest. The money I had put aside to pay him back was spent on moving expenses, with his blessing. He wants me to pay him back in lump sums of ~$5K, so I need to hold the money before I give it to him. More on that in a minute.

I have eliminated the TV debt completely and have no other debt.

GRAND TOTAL: $44,858

My current account holding funds for repaying my Dad is sitting at $1,200.

I have preset the repayments into Dad's loan holding account to $450 per fortnight, and once the credit card is paid off, I'll be redirecting funds to Dad's loan instead. I have unlinked it from my internet banking, so the only way I can access funds from that account is to physically attend the branch and get them to move it for me. Mostly I've done this so I can't rob it - which is a risk, because I'm crappy at saving.

At this point, any extra that I have at the end of the fortnight will be put to the Credit Card, simply because it has interest and Dad's loan doesn't. Plus the sooner I clear it the sooner I can get Dad's loan snowballing up. I'm paying an automatic $300 into the Credit Card each fortnight.

Dad isn't worried about how long it takes to pay him back, but I want to clear it as soon as I can. It was good of him to loan it to me and I'm conscious that I've been given a gift in not having to pay interest.

I'm intending to punch a bit harder at my debt over Christmas / New Year. I'm acting up into my managers role for nearly a full month over January and should have additional pay for that. I'm considering whether I can do some side hustle, but in a new town its difficult to know what might be around.

Its frustrating to me that over the past two years I've gained far more debt than I started with. ARGH!

I feel like each time I get going on the process of paying it down, something happens (and it is all my own choices, I get that) to drive the debt up.

On the up side this time around, I have managed to both increase my income and reduce my expenses, so its not all bad. Yes, my move cost me money but once paid off it will be putting me in a stronger position to buy a house. And that is still my end game. Debt free, home owner.

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