Ok so I have been going backwards since around July 2015 when I had to move rental properties and the rent was $300 per month more than previous. I have been trying to bury my head about it all but that just mean that each week when we fell short things ended up on CC! So no more I am determined this year to manage my money more consciously. I tended to shop for food and other groceries as we needed it at the local supermarket. We go through phases of having takeout way too often - as a solo mum of 3 kids DS 15, DS11 & DD11 sometimes its the only break I get from cooking or if I have been disorganised with shopping its quicker and easier to grab on those nights I am too tired to think about it after work. I work full-time. Due to reasons I won't bore you with there is no financial assistance from the ex for the kids so all of our living expenses are met by me and me alone.
I went back to university and graduated 3 years ago now - Student Loans in Australia are funded by the government and then it is taken out of our pay based on a percentage dependent on our income amount. Bad I know but I'm not even sure what the current balance is I think about $27k. Because of how it is set up I tend not to think about that debt too much - I know its there and it is getting paid.
Unfortunately with a new job - came the opportunity to get into debt. Yes I have always had a bit of a need it now thing happening. But in saying that it is mostly now the kids I have trouble saying no to - I really don't spend very much on myself at all - I get a haircut about every 6 months, colour it myself, and wear clothes years and years old lol.
So now for the debt list.
CC 1 - $932 - currently in an interest free period expiring January 10.
CC 2 - $1467.22 @ 10.99% - current minimum monthly payment $30
CC 3 - $1999.98 @ 13.49% - current minimum monthly payment $40
CC 4 - $2429.95 @ - currently in interest free but will revert in April - current minimum monthly payment $50
CC 5 - $2853.32 @20.99% - current minimum monthly payment $78 - I got this card for overseas travel last year and had it back to a 0 balance but had to use it for the move and it unfortunately has been the one I have had to use to make ends meet the last few months.
Personal Loan 1 - $4320 @13.60% - monthly payment $98.48
Personal Loan 2 - $27256 @13.60% - monthly payment $523.86
Also I have an outstanding balance from my twins primary school tuition fees of $800.
To make matter worse I need to get a new tyre for my car approximately $205 and then 3 days ago the needs a service message started flashing on the car so now I have to factor that in approximately $150-$250 hopefully. Also, in Australia the end of January is the start of our school year so I have all the back to school expenses went to buy the new school supplies yesterday that came to $280.00 just for books, pens, calculators etc. Then I have to get them shoes - they go to Catholic School and they are very particular about uniform so the black school shoes will be about $320 for 3 pairs and then they also have to have runners - I am trying to save where possible on these even considering having the oldest start off in last years if they still fit but am possibly looking at about another $220 minimum for those.
I am expecting some extra income in 2016 so am planning on using all of that to dump the debt:
Next week I will get a School Kids Bonus - government payment - of $1275 - that is being used to clear CC1 and help with the car costs.
In the first quarter I am expecting a $1300 back pay payment after our union completes negotiating pay conditions - I will apply that to CC2 when it comes.
Then I won't get any more larger payments until July with the second School Kids Bonus - $1275 - I will put that to CC3.
In August I will get my Tax Return back plus a Family Tax Benefit which should be about $3000 - I will put that to any balance of CC3 and then I plan to put it towards CC5 just to get rid of the high interest card.
I think I will be able to pay about $500 towards to school tuition debt by the end of January as I am doing 3 half days private work whilst I am holidays from my usual job. Then I will just negotiate to pay the rest in small amounts each fortnight.
I will use the snowball method each time I pay off a CC and am aiming to pay an extra $15-20 per month to CC2 to start with. Due to Car Registration, Electricity and Twins Birthday all falling in the first quarter I won't have any extra to put towards it from my usual pay but come the second and third quarters there should be some more to throw on the CC's.
Oh also I get a rebate from my employer for using my own car for work - that I usually about $100 per month from say February to November - I get holidays from early December to almost the end of January so I don't get it for those months. I plan on putting this money on to the cards as I get it also.
So all I am aiming to have paid off just off 4 of the 5 CCs by September. Then I think I will use that money to save for Christmas, sons Birthday in November etc. Then start of that 5th CC and personal loan 1 in 2017.
I really need to get it under control this year as the School Kids Bonus is being phased out by our government this year and I won't get it next year. Also, they are talking about removing the lump sum family tax benefit that I will get in August and diverting it to families with younger children in day care. So I also possibly won't have that income next year either.
I will have all 3 kids in our high school system next year - but in Catholic Education which even with a discount will probably cost me $8-9k next year. I have agonised about moving them to the public system but we have been in it so long and they have really good friends I just can't bring myself to do it even though I know it would benefit us financially in the long run.
Costco is new to us here in Australia - but I joined last week and went for my first shop there - I have done lots of reading and done a comparison of supermarket prices - I think that there are quite a few things I can purchase there that will help me save in the long run. I already had my membership fee back with savings on my sons toiletry items e.g. deodorant, razors and shaving gel.
I downloaded DR's EveryDollar to help with planning my budget.
Wow - I did it I owned the debt and got it out there to share with your guys!